How to Create a Living Expense Floor for Early Retirement

Lucas and Luna explore the concept of a 'living expense floor'—a minimum annual spending target that covers essential costs and provides psychological safety in early retirement. They break down how to calculate your own floor using the framework from the 2025 J.P. Morgan Guide to Retirement, discuss why a floor is different from a budget, and explain how it protects against the sequence-of-returns risk that derails early retirees. Lucas shares a real example from a listener who used the floor method to sleep better during the 2022 bear market. The episode also touches on the trade-off between a higher floor and a longer working career, and why the floor number changes over time. No fluff, just a practical tool for anyone aiming for financial independence before 50. #LivingExpenseFloor #EarlyRetirement #FinancialIndependence #FIRE #SequenceOfReturnsRisk #RetirementSpending #JPMorgan #RetirementGuide #ExpensePlanning #SafeWithdrawalRate #BearMarket2022 #RetirementPsychology #PersonalFinance #Finance #FexingoBusiness #BusinessPodcast #FinancialFreedom #PodcastEpisode Keep every episode free: buymeacoffee.com/fexingo