The Financial Independence Milestones, Gamified

When I first started learning about financial independence, there was only one number I knew to be a significant milestone: one million. I had zero clue about the rest of the financial independence milestones I’d hit on the way there. That includes knowing how much more freedom each new net worth number could offer me. Now that I’m very merrily on this path I have a much better idea of what each new net worth high can get me, and it’s awesome. I still don’t know why some folks in the FI space call this time the “boring middle”. What is so boring about this when you understand what the numbers mean right now??

I'm about $7,000 away from having a quarter million dollars.

At 26 years old.

Whoever called this the "boring middle" has grown desensitized to just how much money that is.

— We Want Guac (@WeWantGuac) May 11, 2021

And that’s the heart of it, really. Other folks get stuck in the same thinking I did, only able to see the end goal and not what all the smaller victories grant you along the way. Let’s face it: anyone who’s aiming for financial independence has to pursue it for several years, even decades. That’s a hell of a wait when you’ve only got the end as your one milestone.

So how about we switch it up and gamify it, for a change. Let’s be more intentional about noticing the financial independence milestones beyond its relation to how “done” you are. Get as excited about this middle time as I am! As you go along the money accumulates faster and faster, but that doesn’t mean the first several milestones are insignificant. You just need context to know how awesome they really are and what they truly afford you.

So without further ado:

The Financial Independence Milestones, In Order of Achievement

Some assumptions before we go on: each milestone is how much you have invested in a broad-based index fund(s) like VTSAX, VTI, FSKAX, or whatever your brokerage of choice specifies is total stock market index fund. This also assumes the historical average returns of 10% each year remain consistent. I’ve only been investing for five years now, but so far so good for double-digit average growth.

WorthlessFI

$0 net worth: You might start here if you’ve either just heard of FI or have just dug yourself out of a shitload of debt. If you’re currently worth $0, let me be the first to say: congratulations, you’ve now got nothing but positive growth ahead!

BabyFI

$1,000 net worth: you’re off to the races and building your positive wealth. You might still be in your salad days (lentil days?) but this is just the beginning. Even more green is a-comin’.

Plus: you’re now seeing those thousand bucks earn even more bucks. That’s an awesome feeling.

GreenFI

$10k net worth: this is the hardest amount to reach but it’s so nice when you do. You’re now getting four figures per year in gains. You’re also a tenth of the way towards a six figure net worth, which might be closer than you think.

BennyFI

$30k net worth: Woohoo! Your investments can now support withdrawing $100 each month, if you stop here. Keep chugging along and unlock even better achievements!

VacayFI

$50k net worth: the 4% rule lets you take out $2k once a year, every year, forever. Stopping here means you’re now guaranteed a nice weekend getaway every year of your life.

FoodieFI

$75k net worth: the 4% rule lets you take out $250 a month. If your grocery bill is less than that, you’ll never go hungry again. Order those chips and guac, friend. You’ve earned it.

BallerFI

$100k net worth: you’re gaining FIVE figures per year on average. You’re now richer than two thirds of America. You’re also less than 25 years away from being a millionaire, if that’s all invested in VTSAX. But why do that when investing more brings that reality even closer?

HustlerFI

$150k net worth: at this point you can safely take out $500 a month for the rest of your life. Your investments are practically their own side hustle, at this point.

DemonFI

$200k net worth: thanks to the 4% rule you can withdraw $666 per month. Rejoice in your heinous riches. Satanists wish they could.

QuarterFI

$250k net worth: that’s 1/4 of the way to a million. Nice work flexing those financial muscles. If you want to coast, it’ll take you less than 15 years to hit millionaire status. If you stop here you can safely withdraw $10,000 a year forevermore.

BonJoviFI

$300k net worth: thanks to compound interest, hitting $300k means you’re 50% of the way done to reaching a million dollars. Again, this assumes you’re enjoying the historical returns of 10% a year on average. In other words: WHOAAAA, YOU’RE HALFWAY THEREEEE, WHOAA-OHH, LIVING ON A PRAYER!

(Note: there’s a reason I went into blogging instead of a thrilling singing career)

SweetSpotFI

$325k net worth: overall this gives you $13,000 each year, which happens to be a bit more than the federal poverty line. Congrats, you now know you won’t ever be poor. That’s hot.

BeachFI

$400k net worth: this is the average price of a new home so you could buy a house without a mortgage in several parts of the country. If you’re willing to move to Europe, your $1,333/month safe withdrawal rate (SWR) lets you live in countries like Spain, Portugal, Greece, and even Italy. Mediterranean life, here you come.

BlazeItFI

$420 net worth: heh. That’s a lot of devil’s lettuce. Jealous be those still at DemonFI.

NewGrindFI

$500k net worth: you can take out $20k a year. You can, alternately, watch it grow another $50,000 in a year, which is like having an average full-time worker give you 100% of their salary. Leaving the dirty work to compound interest will have this grow to a million in 8 years’ time. Yes, really.

LeanMeanFI

$600k net worth: this is $2,000 a month you can draw down safely, 6 years to a million, or one purring Ferrari supercar. Congratulations, you have reached a FI checkpoint. Retiring on this means living cheaper, but living free for longer. LET FREEDOM RING.

FoggFI

$750k net worth: You’re 75% of the way to a million! This is enough to fund $30,000 in annual expenses or a one-year trip around the world. Ain’t no 80 day limitations for you.

TunnelFI

$900k net worth: you’re in the final lap! Seven figures is within your grasp. So is a $3,000/month SWR if you quit right now. Are you going to end things here or go for the gold?

GoldFI

$1M net worth: The GOLD STANDARD, seven figure moniker. Congratulations on this milestone, you millionaire – I can officially slap your back and tell you I AM SO JEALOUS AND WILL BE LIKE YOU ONE DAY.

PlatinumFI

$1.5-3M net worth: Jesus, we’re really hedging our bets here huh? You’re already a high net worth individual in the formal sense. You can blow $60,000 a year minimum and still come out on top year after year. You’re beyond gold, baby. Keep on shining.

FatFI

$3M+ net worth: you want to live like a king and keep up with the hotshots. This is more money than what 99.9% of people on the planet will ever see and you’re still gunning for it. Make sure to support the rest of us with our own milestones, yeah?

Other Milestones Lists

There have been some great folks in the space who have created other lists of financial independence milestones, some of which have inspired this article:

• Joel at Financial 180 created six financial independence milestones that are the most well-known; he’s measured them against your current level of expenses, so if you don’t fit the average mold you can still follow along. I like his for being simple and straightforward; if you know what your specific goal amount is, you’re only a quick calculation away from knowing if you’re halfFI, flexFI, or better.
• The Fioneers are all about CoastFI and SlowFI, and their milestones list reflects that by measuring according to how much less income you need to actively earn each year. I should be hitting their “$20k active income” milestone by the end of this year, if the markets don’t take a dump.
• In the Retire by 40 world, Joe crafted his milestones list around the thought that actions, not net worth numbers, are what you should focus on. This one most benefits the A-type folks very early on in their journey who want to hit these goals STAT! I’d have been proud of myself after hitting 2 out of his 3 milestones within a year of graduation.
• Jim, aka the White Coat Investor, is one of the best known finance bloggers. He names 14 milestones to hit on his site, which Physician on FIRE rebrands as milestones on the path to financial independence. There are a couple of milestones on here I disagree with (such as buying your home, which isn’t strictly necessary to the process) but it’s great overall as a yardstick reference.
• Over on Accidental FIRE, Dave’s incredible storytelling – as always – ties in perfectly with the topics he’s writing about. After reading his views on the greatest financial milestones I walked away feeling really upbeat and hopeful about the climb to wealth.

And last but not least:

• I’ve gotta pay homage to u/vocatus on Reddit, who saw me talking about DemonFI back in February and immediately cranked out the most hilarious milestones list I’ve ever seen. According to them, my next milestone to hit would be WiFI. Classic.

Milestone art made via this emoji generator