Have you calculated your FI number (use the budget spreadsheet we talked about last time.To calculate the Saving rate here’s an interesting site with a calculator, giving types on what should be included. It’s just basic math, but it’s a very happy type of math, since it means that even for an average middle-class salary, early retirement WELL BEFORE AGE 40 is not at all an extreme goal.Remember to add back in any 401k or other savings deductions to the paycheck you see, since these are really part of what you are “taking home” – you just happen to be saving it automatically. Mr Money Mustache: The 4 Rule: The Easy Answer to how much do I need for retirement.
Mr Money Mustache: The Shockingly Simple Math Behind Early Retirement. But I had already been working on my own plans basically. Take-Home Pay = Savings Rate) MMM definition: ** definition of take-home pay: gross income minus all taxes. There is no way we could live on 25,000 a year, but the math still works, and these two articles gave us a considerable amount to think about. Money Mustache and all these guys in 2016, and I started my own blog. Have you calculated your Saving rate? ($$ Saved in 401Ks, IRAs, HSAs etc.
MMM article The shocking Simple Math behind Early Retirement