A simple framework to turn income into lasting wealth.
Cash flow is the engine. Savings is the system. Wealth is the outcome. Follow the sequence — each step builds on the last.
Financial Planning Framework · Three Rules
Three rules.
One destination.
Cash flow funds savings. Savings builds wealth. Wealth reaches perpetuity — the point where your money outlives you. Work through each rule in order.
1
Free Cash Flow
Income > Expenses
2
Savings Rate
Pay yourself first
3
Perpetuity Test
Withdrawal ≤ Return
Monthly take-home income after tax
$
Monthly expenses
Housing rent or mortgage
$
Food & groceries
$
Transport
$
Bills & subscriptions
$
Everything else lifestyle, fun, misc
$
Monthly cash flow
—
Enter numbers
Total monthly expenses
—
—
Rule 1 principle
—
Monthly surplus before savings
Enter your income and expenses above to see your free cash flow.
Monthly amount saved / invested
$
Total existing savings & investments
$
Targets & assumptions
Savings rate target % of income
%
Expected annual investment return %
%
Emergency fund target months of expenses
mo
Your savings rate
—
—
Emergency runway expenses only
—
—
10-year projection
—
Estimated portfolio at current savings rate & return
Enter your savings and return rate to see a 10-year projection.
Wealth projection · year by year
Annual lifestyle cost what you need to live on
$
Current investment portfolio
$
Expected annual return on investments %
%
The perpetuity formula
Pass condition (heuristic)
Withdrawal rate ≤ Return rate
Annual spend ÷ Portfolio ≤ Return %
e.g. $60k spend ÷ $1M portfolio = 6%
If return = 7% → test passes ✓
Money grows even as you withdraw
If return = 7% → test passes ✓
Money grows even as you withdraw
Note: this is a simple heuristic. It does not account for inflation, taxes, sequence-of-returns risk, or return volatility. A more conservative real-world target is withdrawal ≤ return minus inflation (typically 2–3%).
Withdrawal vs return rate
—
withdrawal
Withdrawal rate
—
—
Perpetuity status
—
The point where your portfolio generates more than you spend.
Enter your annual spend, portfolio, and expected return to test perpetuity.
How much do you need? · Your perpetuity number
Your progress through the three rules
1
Cash flow
—
2
Savings rate
—
3
Perpetuity
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