Two weeks ago, I talked about the value of cutting $100 from your monthly expenses which leads to an astonishing $30,000 reduction in your FI Number.

But that’s not even half of the benefit of cutting $100 per month as the actual value is:

**$90,000 ** You are $90,000 closer to FI when you cut $100 per month from your budget.

The missing link is this:

You’ll invest that $100 per month into the stock market (most likely a low-cost index fund) and you’ll expect to earn an 8% annual return on that newly invested money.

I opened up a compound interest calculator assuming and assumed three things: a 20 year path to FI, 8% annual return and $100 monthly investment.

After 20 years, this $100 per month is worth nearly $60,000 .

Add the $30,000 reduction in your FI Number for cutting that $1,200 per year expense out of your life and the total value over your 20-year FI journey is $90,000 for every $100 you cut from your monthly budget.

Here’s a Real-World Example:

Pre-FI let’s say you were earning and…