Infinite Runway

Infinite runway is when you have enough in investments to generate revenue that can pay for your lifestyle and pursuits indefinitely.

For example, if you need £16,000 a year to live contently, then all you may need is £200,000 in an investment fund with an average annual return of 8%.

Lately I’ve been giving this some thought. My current living arrangement is such that I can live contently on even £8k a year. My pursuits are almost entirely intellectual, and cost little beyond some equipment and professional subscriptions. I don’t care much for travel.

This means all I need is £100k in an investment fund. Perhaps £200k-£300k if I really wanted to feel safe.

Fiscal freedom I think is an easier goal than we’re led to believe.