I was reading on Kitces.com and really enjoyed his post on Adjusting Safe Withdrawal Rates To The Retiree’s Time Horizon. Just before we dig into this article, remember that this comes from the assumption that a 4% withdrawal rate per year will not deplete your capital and can sustain you with a very high rate of success (see Trinity Study).
Living below your means is the key to financial independence. Whether you have debts you are trying to pay off or you are in the accumulation phase of great wealth, you always need to earn more than what you spend. If you earn less than you spend, you will fall into an ever increasing amount of debt. With a good budget and proper planning, anyone can succeed.