Do you want to live your life just by spending your passive income, with another 200% buffer, without using any of your capital? Here is an illustration of how I will do it for my family of 3:
Needs: $15,000/year - This amount of money is what my family will need minimally to survive in Singapore
Wants: $14,000/year - This amount of additional money is what my family need to maintain current lifestyle in Singapore (this include yearly travelling, restaurants visits and more) - I will share more tips in future on how you can spend less to get more - Frugality
Total Needs + Wants = $29,000/year
At 5% return, you will need to have $600,000 to provide a passive income of $30,000/ year. The capital remains untouched. For simplicity, assuming the capital growth covers the inflation rate.
As a prudent family man, let us set aside 2 years ......