Using the Rule of 300 to estimate how much money you need for financial freedom

The Rule of 300 is a shortcut that enables you to estimate how much money you’ll need for retirement or to achieve financial independence. Even more excitingly, it enables you to estimate what any particular line item in your budget will require in terms of capital funding. That’s right! The rule of 300 turns amorphous future you into a flesh and blood person with their own wants, needs, and bank statements. And if future you wants – or needs – a monthly subscription to a luxury hot chocolate delivery service, then the Rule of 300 will tell you how much you’ll need to have saved up to pay for it. Most of us find it hard to imagine paying for stuff several decades hence. But the Rule of 300 bends the space-time continuum to make it easier. Basically right but specifically wrong Let’s get one thing straight upfront. The Rule of 300 is not a scientific law that can’t be broken. It will probably always be off a bit. It’s just a rule of thumb. Some of the assumptions behind the Rule of 300…