[Amy]

My spouse and I have always been high earners and big savers, but I’m new to discovering the ChooseFI movement. I’m working on my own calculations to determine what our FI number would be, which is obviously based on expected annual expenses in retirement.

Our current lifestyle includes a mortgage, two kids, childcare, typical things for people with young kids but I don’t expect to have a lot of those same expenses later.

We have a rough idea of the lifestyle we’d desire in retirement (two small homes, one near each kid, split our time between the two places and traveling the world) but how would I estimate how much that will cost per month?

What are the things you considered when estimating your annual expenses once you have reached financial independence?

[Stephanie]

One thought, as a child who has made life choices my parents couldn’t have predicted: Owning homes near your children will only make sense if they stay in one place for years at a time, and probably in their/your country of citizenship.

It sounds like they’re still young, so it’s not possible to plan around their hypothetical future choices.

If owning multiple homes (that you keep available for your own use, not rental properties) doesn’t have to be part of your plan, how much earlier can that retirement start?

[Charlotte]

May be an unpopular opinion but if you are early in the journey you really don’t need to know your number, just find a comfortable savings rate and live your life.

Things will become more clear as the kids get older, etc

[Sarah]

I just estimate needing 100% of earnings, even though clearly we won’t. I’d rather have more than necessary.

Personal finance is personal though.

What makes the most sense to you?

[Author]

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