FI Score Test by Cashflow Cop

Becoming FI, or financially independent, is a huge accomplishment. The FI Score Test designed by Cashflow Cop is a nice tool to see where you are on this long road. I ran the test and these are the results!

The FI Score Test Results

I took the test this week, and the results can be seen in the screen capture below. Apparently, I’m a special constable whatever that might mean. At least I’m regarded as stable.

I took my standard variables for a safe withdrawal rate of 3.5% combined with my current investments and expenses mean that I will be financially independent at age 41, which is slightly later than my goal of 40.

You can run your own test here.

FI Score Test
FI Score Test

Debts and the FI Score Test

It’s funny that I get to red flags for having a mortgage and student loans. I mean, I get it. Having debt is usually a bad thing.

But my debt isn’t that bad at the moment. On my mortgage, I pay a 1.40% gross interest that I can deduct from my income tax. My student loans are “free” right now, with a 0.01% interest rate and no principal payments for five years.

I know that in the end I have to pay back all my debts and I fully intend to do so. It’s just that right now, I can earn more by investing this money rather than paying it off.

My goal is to become (nearly) debt free by the time I reach FI, as I wrote earlier in my Investor Policy Statement.

Expenses and Charity

For simplicity, I just put in 20k as my annual expenses, since that is approximately what I’m budgeting to spend each year. Also, I’ve put in 0 for charity as I currently don’t give money to charities.

I know that in the future my expenses will change. When buying a larger house or having children my expenses will go up. When this happens and for how much is hard to say.

Therefore, I only included what I know right now. That gave me the result you can see above.

I also intend to give to charity in the future. Whether that will be in the form of money, or in the form of volunteering my time I’m not sure yet. I have volunteered in the past, and I liked it a lot. Right now it doesn’t fit my schedule, but I will pick it up again in the future.

Age to Financial Independence

According to the FI Score Test, I will be FI in the year I turn 41. I will reach my goal of slightly above FI at age 43.

While these are obviously very nice numbers, I realise I do need to step up my game here. I would like to achieve FI by 40, not 41 and yes I’m f**king competitive. Also, with increasing expenses (see above) the 41 might become higher.

Please run the test yourself and share your results with Cashflow Cop and myself on Twittter or in the comments below. Where are you on your journey?

4 thoughts on “FI Score Test by Cashflow Cop”

  1. Hey, Hey! Thanks for the write-up and sharing the results FTB.

    I like your intense focus to reach FI by 40 :)

    I am confident that you’ll get there.

    If anyone else completes it, please let me know and complete the poll.

    PS. I accept your point about student loans and mortgage. In the next update, I will give people the option to exclude student loans in calculations. In the UK at least, most loans are forgiven.