The Freedom Formula

A simple way to measure how close to financial freedom you really are

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The Freedom Formula

LI Leveraged Income
LE Lifestyle Expenses
LA Liquid Assets

Freedom is when Leveraged Income covers your Lifestyle Expenses, backed by enough Liquid Assets to cover any gaps

Your numbers

£
£
£
%
The value you want your liquid assets to stay above
£

Your monthly position

Amount
Leveraged income £0
Lifestyle expenses £0
Monthly shortfall £0
Income covers 0%
Freedom runway
0

How long your money lasts

The same runway, expressed three ways

0 Weeks
0 Months
0 Years

Your runway is how long your liquid assets can cover the gap between your lifestyle expenses and your leveraged income, before dropping to your minimum liquid assets. This assumes the unused balance keeps earning your investment return along the way. When income covers your lifestyle, or your return alone outpaces the gap, the runway never ends and you’re free

Liquid assets over time

Contributions Investment return
Years shown 0 yrs

Yearly breakdown

Year Contributions Investment return Balance