International Financial Independence Awareness Day

To help everyone have a chance to overlook their financial status, International Financial Independence Awareness Day is created on April 25th every year since 2019.

Why April 25th?

The 4% is the cornerstone of financial independence planning. The simple explanation is that you can safely withdraw 4% of your investment per year to fund your retirement and grow this to cover inflation. So, if you manage to build a $1 million portfolio, you can withdraw and live on $40,000 the first year and increase with inflation every year thereafter.

Another way to think of this concept is to multiply the annual cost by 25. If you need $40,000/ year to live: $40,000 x 25 = $1,000,000.

The 4% and 25 rules are expressions of the same concept.

April is the 4th month of the year. 4/25, right? It is so thematic and easy to remember!

History of International Financial Independence Awareness Day

The first time of International Financial Independence Awareness Day is since 2019; therefore, you can see that the history of International Financial Independence Awareness Day is relatively short. It was founded by people who know the power of financial independence and how it can change lives. They would like to share their secrets and make financial independence become a great goal for more and more people. The day brings together the 2 main rules discussed above and helps to inform more people about their power.

Celebrating International Financial Independence Awareness Day

If you would like to have a significant International Financial Independence Awareness Day, you should think about your financial situation and what you can do to plan for the future and become more financially independent. Do this by looking at how you can apply the Rule of 25 and the Rule of 4% to your situation. You can discover things and start making changes that you never thought possible before.

This day is also about passing on information and sharing it with others, so you should discuss these with those closest to you. You can get many benefits from it in the long time. They may not be aware of some rules we discussed above, but that do not mean they cannot benefit from them if they start using them in their own lives as well.

So, how about learning and sharing ideas relating to financial independence on International Financial Independence Awareness Day? Doing so can get you one step closer to the point where you no longer have to work for a paycheck.