Hedonic Ratchet / 50%-of-Raise Check

"I just got a raise. If I let lifestyle absorb part of it, am I closer to FI — or further?"

Each new dollar of lifestyle is not a one-time expense; it permanently raises the nest egg you need by $25.

— Debugging Your Personal Finance, Chapter 13

% of the raise to lifestyle (50%)

	Before raise	After raise
Expenses	—	—
Savings rate	—	—
Freedom number (25× expenses)	—	—
Years to FI (from start)	—	—

This models the book's point: you are already partway to FI, with a portfolio sized for your current, smaller expenses. Each $1 of the raise you spend permanently adds $25 (at a 4% withdrawal rate) to the number you need, so even saving at your old rate can push the date out. "Years to FI" is counted from when you started saving, with contributions at the start of each year. The break-even line shows the share of the raise to bank to hold your original date.

From Chapter 13 of Debugging Your Personal Finance. Simple calculator · Inputs stay in your browser · Not financial advice.