While some aim for huge figures, financial experts suggest that calculating 25 times annual expenses can provide a realistic roadmap to achieving the power of choice.

Le Van Hai, 38, holds a management position at a large company, earning about VND60 million a month. The job is stable, but after more than 10 years of working, Hai has begun to feel worn down by KPI pressure and endless meetings.

Hai said he does not hate his job, but has gradually grown to dislike the feeling of working purely for money. Thoughts of quitting have surfaced more and more often. He started asking himself how much money would be enough to stop working.

Initially, Hai set a figure of 20 billion VND, a level he considered sufficient for a family of four to not worry about the future. However, when calculating specific family expenses, he realized the reality was far from his imagination.

Average family expenses are about VND35 million a month, equivalent to VND420 million a year. After excluding non-recurring expenses such as travel or large purchases, essential costs are about VND360 million a year.

The specific calculation made Hai look at the problem of quitting in a more realistic way, rather than relying on a feeling of insecurity.

According to independent financial consultant Pham Thu Trang, one of the common principles in financial planning is the "25 times annual expenses" rule: if an investment portfolio can generate an average yield of about 4 percent per year, an investor needs to accumulate assets equivalent to 25 times annual living expenses to create sustainable passive cash flow.

Applying this to Hai's case, with essential spending of VND360 million per year, the figure is about VND9 billion. This level is much lower than the VND20 billion VND he once thought of.

However, the issue does not lie only in the calculation. Many people set a goal to quit working, but what they truly desire is the power of choice. When assets are sufficient to generate passive income, individuals can continue working out of passion or reduce labor intensity without financial pressure.

This concept is often called financial independence. Experts also note the need to consider inflation and market volatility. An average inflation rate of 3–4 percent/year can erode asset value if the investment portfolio does not generate a positive real yield.

In reality, many people often make mistakes when calculating the amount needed to quit because they tend to exaggerate their future standard of living due to a fear of scarcity, while not considering long-term investment yields, or failing to adjust goals according to each stage of life.

Meanwhile, financial freedom does not necessarily mean stopping work entirely. Many people, after reaching financial independence, continue to work part-time, consult, or start small-scale businesses.

Trang believes that financial freedom is a long journey. When individuals know exactly how much they need, for how long, and by what means to achieve it, the fear of money scarcity will decrease significantly. At that point, freedom is not just a number, but a state of being proactive about the future.

After the consultation, Hai changed his approach. Instead of pursuing a vague 20 billion VND goal, he built a 10-year plan with a destination of 10 billion VND in investment assets.

Currently, he owns about 3 billion VND, including 1.5 billion VND in real estate for rent, 1 billion VND in a long-term stock portfolio, and 500 million VND in cash and a reserve fund. Every month, he sets aside about 25 million VND to invest further. If he maintains this accumulation level and achieves an average yield of 8 percent/year, he can reach his target within the next 7-8 years.

The biggest change, according to Hai, is not the current asset figure but the feeling of being in control of his plan. He said the dream of financial freedom is no longer distant but has become a problem that can be managed and tracked.

Tran Chung