60 Seconds to FIRE Newsletter 23
Four simple formulas to make work optional sooner than you think.
Hi Future Escape Artists,
A small deviation this month from the usual newsletter format because—well, it’s my birthday, and I’m currently on a train heading north through Spain. San Sebastián, to be precise. A city with one of the highest concentrations of Michelin-starred restaurants in the world, and conveniently, a very scenic half marathon.
The plan? Run a cheeky 21kms, then gorge myself to death on tapas and wine. 🍷🥘
But between plotting pintxos stops and wondering why I do this to my legs, I’ve been thinking about something else—basic maths that most people ignore, even though it could save them decades of work.
So this month, instead of the usual format, I want to share 4 basic formulas/ratios that will speed up your exit from the daily grind.
1. Your Savings Rate (%)
Yes, I know—every bloody finance writer talks about savings rates. For a good reason.
Your savings rate—how much of your take-home pay you actually save—is the single most powerful determinant of how quickly you can retire. A 10% savings rate might have you working until your knees don’t work, while a 50%+ rate could slash your working years by decades.
But geo-arbitrage (relocating to a lower-cost city or country) can supercharge things. If your savings rate is currently 20% in Sydney, moving to a more affordable Australian city like Adelaide could lift that to 30%+—without leaving the country.
Take the same income abroad and the gap widens even further. In Porto, Portugal or Mexico City, your savings rate might hit 40%. Relocate somewhere like Koh Samui, Thailand, where living expenses can be a fraction of Sydney’s, and suddenly you’re saving 50%+ of your income—while living on a tropical island.
That shift alone can carve years off your retirement timeline.
2. Return on Invested Capital (ROIC)
Savings build the foundation, but investments create the engine. ROIC measures how much income your portfolio generates relative to its size.
Let’s say you’ve built a $500,000 nest egg:
At 5% ROIC, you’re generating about $25,000 a year. You’re not still living in Sydney with this amount, and you’re probably fighting the resident bin chicken for the Maccas discards. We can do better.
At 10% ROIC, that doubles to $50,000 a year. Better, but this is still a frugal life. A little more inflation and you might end up needing to sell feet pics (yes… it’s a thing) to make ends meet.
At 15% ROIC, you’re pulling in $75,000 a year. There’s a bit more breathing room here—you might even be able to be a sociable human on $75k (the kind of person who says yes to meeting up for a drink sometimes).
At 20–24% ROIC, you’re talking about $100,000 to $120,000+ a year. Now you’ve got options. Smashed avocado and lattes are back on the menu, and you can finally relax a little when the bills land or the next time you eat out.
That difference is the gap between “almost there” and complete financial independence.
Now, that’s before taxes, of course. Just because you escaped the rat race, don’t think the ATO/IRD is going to let you and your money go walking off into the sunset hand in hand. Oh no—your relationship with money continues to be an unhappy three-way.
That is, unless you take geo-arbitrage more seriously. Then you can kick that third wheel out… or at least reduce how demanding he is.
Reducing your tax burden (by moving abroad or choosing the right investments) directly increases cash flow. Same portfolio, more money in your pocket.
“For example, I myself average a little over 3% per month using options—usually with just a couple of hours of work—and it’s one of the ways I teach people to boost their own ROIC.” Send “Course” below for more information on the next available Options Trading Course.
By sharpening your financial IQ—whether through real estate, dividend investing, or strategies like my options trading course—you can boost your ROIC and turn your investment engine into a high-performance machine.
3. Housing Costs as a % of Take-Home Pay
Housing is the silent killer of financial freedom. If you’re spending 40% of your income on rent or mortgage, it crushes your ability to save. Ideally, housing should be 25% or less of your take-home pay, according old mate Dave Ramsey anyway.
But adjusting where you live changes the math completely. By moving to a different city—or even just outside your current one—you can drop housing costs dramatically. Lower housing = higher savings = faster retirement.
Yes, I know that cheaper accommodation often comes with a longer commute. But if it’s just for a few years, could you tough it out? If it means escaping the rat race sooner—how bad do you want it?
Think of it this way: cutting your rent from $2,500 to $1,200 a month doesn’t just save you $15,600 a year. That $15,600 builds a bigger investment engine—one that spits out more cash every year. Reinvest those returns, and the engine grows even more powerful, spinning faster and faster until it carries you to financial independence.
4. The Rule of 72
Finally, the simple but powerful Rule of 72. Take 72, divide it by your annual rate of return, and you’ll know how long it takes your investments to double.
At 6% return, your money doubles every 12 years.
At 12% return, it doubles in just 6 years.
At 24% return, it doubles in only 3 years.
This isn’t just trivia—it’s a way to map your path to financial freedom. Let’s say your retirement number is $1,000,000. Right now, you’ve got $200,000 invested and you’re earning a 24% ROIC.
In 3 years, $200,000 doubles to $400,000.
In another 3 years, $400,000 doubles to $800,000.
In just 9 years total, you’re sitting at $1.6M—well past your $1M target.
That means in less than a decade, you go from being “on the way” to being financially independent. Without the Rule of 72, it’s hard to see how your rate of return directly impacts your timeline. With it, you can model scenarios and make smarter choices: do you focus on cutting costs, increasing ROIC, or both?
The Rule of 72 shows you how every extra percent return—and every smarter savings decision—translates into years of your life reclaimed.
The Cascade Effect
Here’s how it all flows together:
Your current savings rate might be A.
Move to a lower-cost city—or even just a cheaper suburb—and suddenly it’s B.
Relocate abroad—to places like Porto, Mexico City, or Koh Samui—and your rate jumps even higher, giving you C.
Increase your ROI with smarter strategies (options, real estate, etc.), and now you’re at D.
Using the Rule of 72, you can literally see how these changes shave years—sometimes decades—off your working life.
Even shifting one suburb over can change your trajectory. Each step adds fuel, spins the engine faster, and gets you off the track years earlier. So you can spend your money on running events or Michelin star restaurants or what ever you’re into.
Final Word
Freedom isn’t just about one big number like 25x—it’s about understanding how a handful of ratios and equations interact. Master these four numbers, and you’ll see the cascade effect: savings drive investing, investing drives income, income grows the engine, and the engine drives freedom.
The earlier you take action, the sooner you stop working for money and start living life on your terms.
Cheers
Andy
On a Train…in Spain.
👉 Want to see how options can turn your investment engine into a cash-flow machine? That’s exactly what I teach in my Options Course, where I walk you through the same strategies I use to average over 3% a month—with just a few hours of effort.
Message “Course” here for details on the next intake.
Not quite ready yet?
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This is a great outline 60Seconds. The compounding effect of these factors combined could be very powerful!