Something we’ll look at when we cover a few examples below. Obviously the higher the percentage of your income you’re saving, the harder it is. My point is actually to encourage you that if you haven’t been saving much, every increase makes a huge difference. I don’t point that out to discourage you from shooting from high savings rate. ![]() Going from 5% to 10% shaves 14 years off your career, but going from 90% to 90% shaves off one. One thing that stands out about the chart is that you run into diminishing returns. He was also more precise in parts, listing 10.5 years for 65% whereas my methodology always rounds up. A few times we’re off by a year from each other, but that kind of thing happens. Money Mustache’s numbers are nearly identical to mine. Find the year when the portfolio balance exceeds 25x your annual spending and record it on the chart.Drag the formulas down, and your spreadsheet gives you the portfolio growth over time.Your ending balance in year one becomes the starting balance in year two. ![]()
0 Comments
Leave a Reply. |