Financial independence is a portfolio that covers spending without wages. At 4% (Bengen 1994; Trinity 1998) the target is 25× spending — a 30-year U.S. starting rate, not a contract.
SCF 2022: median net worth $192,900; 56% of families spent less than income. BLS CEX 2024: housing plus transport = 50.4% of average spending. BEA saving was 5.4% of DPI in 2024 — a national residual, not your 401(k) rate.
Years to FI from $0 at 5% real, 25×: 10% → 51 years; 25% → 32; 50% → 17. The rate does two jobs: more goes in, and 25× spending shrinks.
$12,000 a year at 7% nominal: start at 25 → $2,395,621 at 65; start at 35 → $1,133,529. Ten early years, then stop, finish ahead of thirty late years.
This week: savings rate = 1 − (spend ÷ take-home). Run Target FIRE at 3.5% and 4.0%. If the date is after 65, raise the workplace deferral one point.