Excerpt from a YouTube video in which Ndubuisi 'Andy' Egwim explains using the Rule of 72 as a heuristic for reaching financial independence. He frames financial independence as the point when investment returns can cover lifestyle costs, allowing physicians to reduce clinical hours or shift priorities while continuing to invest and adjust spending or income.
Rule of 72 that was quite popular. And I'm very careful with numbers when it comes to rules and numbers. I'll say you have to still sit down and figure out what works for you. But basically what it's looking at is by the time you have investment and returns that are enough, they're actually able to pay for your lifestyle. That's the point where you can say you're financially independent. What that really implies that if you want, you could cut down your cost or increase your income. Let's say you're a doctor, you were working full time but you were investing quite vigorously. You were timing things and maybe you got to 40 or 45 or 50 and you can decide I want to work two days a week now. So this is sort of like it's not quite there, but you're, you're moving in that direction. Yeah. So people can work out what really works for them.
