If you have reach a certain level of wealth savings, such that you are ready for early retirement, semi-retirement, one question that you might have is, how do you go about:

  • Knowing how much you can spend next year, within a fundamentally sound limit
  • Repeat this approach of deciding and coming up with this sum year after year

There are much literature about how much you roughly need to reach financial security or independence, the iron clad rules to build your wealth towards financial security or independence but I realize not a lot of it talks about spending down, or in the academic term, withdrawing your money for spending.

These set of planning steps are high level and are scripted in a way to let you execute every year to determine how much you should spend for the following 12 months.

Why do we need to plan for how …