What is Flex FI?

Flex FI, as discussed by Brad Barrett and other experts on the ChooseFI, refers to a flexible approach to achieving financial independence. The core idea is to reach a state where you have 20 times your annual expenses saved (compared to the traditional 25 times in standard FI). This equates to a 5% withdrawal rate per year, as opposed to the more conservative 4% rule.

Key aspects of Flex FI include:

1. Flexibility in Spending: Being prepared to adjust your spending based on market conditions. In bad market years, you might cut back on discretionary expenses like travel 1.
2. Part-Time Work: Willingness to take on part-time work or side hustles can significantly reduce the financial strain and increase the likelihood of not having to return to full-time work 2.
3. Higher Probability of Success: Even without spending flexibility, reaching Flex FI has an 82% chance of success according to the Trinity study, which is considered relatively safe 3.
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     1

     Flexibility in FI

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     2

     Embracing Flexibility

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     3

     Flex FI Insights

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The Flex FI approach provides more immediate financial freedom with the understanding that adjustments might be needed along the way, making it ideal for those who are comfortable with a bit more risk for earlier retirement 1 2.