Wondering how much you need to save for your dream retirement lifestyle? In just three minutes, we'll unveil a super simple method to calculate your retirement savings target without any complicated math. All you need is a pen, paper, a basic calculator, and your computer.
Let's break it down step by step.
💡 Step 1: List your monthly expenses, including food, utilities, rent or mortgage, insurance, travel, and dining out. Add them up.
💰 Step 2: Multiply your monthly expenses by 12 to get your annual expenses. (e.g., $7,000 x 12 = $84,000)
📈 Step 3: Discover the magic of the "four percent rule." Divide your annual expenses by 0.04 to find out how much you'll need to save. (e.g., $84,000 / 0.04 = $2.1 million)
📆 Step 4: Determine how many years until you plan to retire. Let's say it's 10 years for this example.
💹 Step 5: Adjust your savings for inflation. Assuming a 3% inflation rate, calculate the future value of your savings. Don't worry; we'll guide you through this using a simple online tool.
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