FiIRE target Number - why so high?
When I read posts here (I mean not US related where everything is bigger like … paycheck, but also expenses) about FIRE targets, they’re often around €1.5–2M, and I honestly don’t get why the number is so high.
For example, I checked my actual spending from last year and it was about €1.9k per month. That includes everything — 3 weeks in Thailand, 10 days in Sicily, mortgage payments for my flat here in main Polish city, going out sometimes, etc. I’m naturally a bit frugal, but still.
I’m not counting invested money here.
Using a 3.5% SWR, around €650k should be enough for me to retire. Let’s even add another €100k for big one-off expenses like a new car or home renovation (and I’d probably still work a bit anyway).
I get that places like the Netherlands are more expensive, but for most European countries the difference shouldn’t be that big.
To clarify: I’m assuming these target numbers are per person and don’t include a primary residence.
So am I missing something? Am I being naive? Or are people just overshooting their targets / including their home in the number?