Your FIRE number is the capital needed so investment returns cover your living costs back home — without you ever working again. For diaspora, this is the ultimate "I'm free" number. This calculator finds yours.
Post-return living costs
From Cost-of-Living calculator
How long money needs to last
Withdrawal assumptions
Conservative: 3%, Standard: 4%, Aggressive: 5-6%
Mixed portfolio: 5-7%
African economies: 5-10% typical
Current progress
$ 720,000 to go
Lower withdrawal rate = higher FIRE number needed but more certainty. Higher rate = smaller number but higher risk of depletion in down markets.
Early in FIRE journey
Only 4% of your FIRE number. Increase your monthly contributions — every dollar compounds.
Improve your savings ratePassive income still low
Your current savings generate 100/month — covering 0.0 months of expenses. Keep saving.
These insights are educational and do not constitute financial advice.
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Understanding the numbers
The FIRE (Financial Independence, Retire Early) movement popularized the "4% rule": if you withdraw 4% of your invested capital annually (adjusted for inflation), your portfolio should last 30+ years based on historical market returns.
For diaspora returning to African countries, the dynamics are different. Cost of living is often lower (good), but investment options may be more limited, and currency volatility can erode purchasing power. The "right" withdrawal rate depends on your risk tolerance and market access post-return.
Three withdrawal rate scenarios
- 3% (very conservative): Portfolio likely lasts 50+ years. Best if you want certainty over speed.
- 4% (standard): The "Trinity Study" rule. Should last 30 years. Most common target.
- 5-6% (aggressive): Higher withdrawals, but higher risk of depletion in down markets. Use only if you have other income sources.
How the math works
Annual expenses × 25 (at 4% withdrawal rate) = your FIRE number. Example: $30K/year expenses → $750K FIRE number. At 4% withdrawal, $750K generates $30K/year in passive income, replacing your active income indefinitely.
The key insight: lower living costs = lower FIRE number = earlier freedom. This is why many diaspora plan their return to lower-cost cities — it dramatically reduces their FIRE number and accelerates their independence date.
Caveats for diaspora
- FX volatility can erode your FIRE number if held in foreign currency and converted.
- Healthcare costs back home are often higher than expected — budget 15-20% buffer.
- Family obligations continue post-return — include them in your monthly living cost.
- Many African countries lack deep bond markets — diversify internationally where possible.