20-20-10 rule of financial freedom

If you invest 20% of your income every month and achieve at least 10% yearly returns, your monthly returns will match your income in less than 20 years... actually, 18 years and 10 months!

From then on, you could live entirely off your returns, as long as you can keep getting 10% a year.

I call this the 20-20-10 rule of financial freedom :)

20-20-10 financial freedom, illustrated by a person shoveling 20% of income into a Markets machine with a 10% return, then relaxing in a hammock 20 years later as coins flow out.

Get the details with your own numbers in FINARKY's Future Calculator.

Screenshots are for a $2,000/month income, investing $400/month (20%) for 20 years, then withdrawing $2,000/month.

Try it yourself!

Screenshots of FINARKY's Future Calculator showing that with a 10% yearly return rate, investing $400 monthly for 20 years enables $2,000 monthly withdrawals from 2046 onward, illustrating the 20-20-10 financial freedom rule.

...and see if you're hitting that 10% by checking your PRR (Personal Rate of Return, a.k.a. MWRR/IRR) in FINARKY.