FI Ratio is one of the quantitative relation that I would start to track in my quarterly dividend updates because they are such an important part of the whole financial independence concept.
The idea of the FI Ratio is simple.
Everyone has their very own definition of what financial independence meant to them but quantitatively it should at the very least cover their expenses through the reach of their passive income.
Most of us would start by working as an active employee earning active income which would mean our FI ratio would start from ground zero assuming you didn't have any savings back then. Over time, as we began to accumulate more savings strategy, we would start earning the interests from the banks which would qualify it as passive income. Based on this aspect, our FI ratio should over time continue its upward trajectory assuming the growth in the passive ......