I crossed a milestone last month.
We’re now 9 years from Financial Zen (which is Level 3 if you’re playing along at home).
In 9years, our annual savings combined with our current Financial Zen Funds will cover our trailing 12 months of spending indefinitely (adjusted for inflation).
The only way to fall off that path is to spend more without saving more.
So if we want more lifestyle or bigger housing costs (or kids), then we’ll need to make more money and then save a percentage of it.
For us, the ratio is 5:4. So for every additional $10,000 we spend each year, we’ll need to save $8,000 more.
That ratio will differ based on your spending and current Financial Zen Funds (how much you’ve already saved).
Thankfully, with your Financial Zen workbook, we make it easy to do the math.
Financial Zen (as in independence, not my business) is my top priority. (Don’t worry, I’ll never ACTUALLY retire.)
With the finish line in sight, it’s easy (even fun) to maintain diligence in tracking my numbers.
For FZ Members, we can look at your numbers next month.
For non-members, it starts by analyzing your current cash flow, which is pretty easy these days. Just add your logins to Mint or YNAB and start tracking your monthly spending and savings.
Ratcheting toward Financial Zen is easy. You just need to increase your savings in lockstep with your spending.
