Retire Rich - Retire Math & Calculation,
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When you want to retire? Do you have any plan for it?
No matter at what age you want to retire, you must have a plan. A plan for your life and future! Sound “Bulky� No, you don’t have to make a complicated plan. Just keep it simple and easy! You can have a great idea on your retire plan at any age by just doing some easy calculation!
To explain further, I will give you an example.
Let’s say you are 25 years old, and you wish to retire at the age of 50 and spend your life doing anything that you want to. To achieve it, for the next 25 years old, your income not only has to support your monthly expenses but also has to prepare your expenses after you retire. According to report, average human’s life is around 70 something so let’s make it 80. That’s mean you must prepare an amount of money that can support your 30 years of life after retire.
Formula to calculate your total money for your retirement:
Monthly Expenses x 12 x 30 = Total money for retirement
Monthly expenses: You have to decide yourself. What is the life standard that you want after retiring? This you have to ask yourself. But you must pay attention, according to some reports, people have more expenses after retiring. So my advice is please plan a monthly expenses that more than what you have right now, here is the reason:
- Medical Care: Health is important to all of us and it also takes us a lot of money to maintain it. We need money for medical, we need money for supplement and we need money to buy healthier food and etc. In addiction, you are old after you retire and there is high possibility that you will maintain your heath harder than now.
- Plan for unexpected. After retire, for most people, you will lost your income. So any unexpected happen, you have to use your saving or retirement money. So plan more for unexpected incidents.
- Enjoy your life. After retire, you will have more time to enjoy your life. So you will do anything that you like to keep yourself busy and happy. How much you want to prepare for this needs? It depends. If you wish to travel around the world like me ;-), then you must plan more money. Different plan have different amount of money.
Living Standard. For some people, they think that after they retire, their living standard will drop and monthly expenses will drop accordingly. However, the fact is most people will not drop their living standard but improve them unconsciously. In my opinions, no one will wish to drop their living standard after retire. So we better plan for it.
So now you know what is your expected monthly expense? Just multiply it with 12 and 30, you will get your total money for your retirement.ÂÂ
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