NEXVAANI
Financial Guides8 min readAugust 20, 2026

The FIRE Movement Guide: How to Calculate Your Financial Independence Number

NV
Written by NexVaani Wealth Strategy
Executive Summary

Financial Independence, Retire Early (FIRE) is not about stopping all work—it is about reaching the point where your investments generate enough passive income to cover 100% of your living expenses forever.

The Trinity Study & The 4% Rule Explained

The 4% Safe Withdrawal Rate (SWR) indicates that a portfolio diversified in equities and index funds has a 95%+ historical probability of lasting 30+ years without running out of money.

Adjusting for Inflation Over 30-40 Year Horizons

A monthly budget of $3,000 or ₹50,000 today will cost $10,000+ or ₹1.6 Lakhs in 25 years at a 6% annual inflation rate. Calculating your target nest egg requires growing annuity formulas.

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