The more you know your current position, the clearer it gets!
Now with information you have, do the following estimation:-
1. Compounded at certain percentage the amount you have now
2. Estimate your future income (now until retirement) and how much could you further save in coming years, add it up
3. Add up 1 & 2 above minus how much do I need upon retirement (see Then the Retirement Fund)
4. If your answer is positive, congratulation. Ensure your plan and your retirement fund is secured
5. Else, a negative means you need to plan to make up the setback
Is this a definite target, the answer is NO. Everything move in relative towards one another. Inflation may set in, unexpected company bonus, financial crisis and rising investment returns can happens along the way. These plus and minus will definitely happens but knowing your own situation and what are the targets year on year surely helps a lot in your journey.
Nothing beats the peace of mind!
If your position is everywhere, your momentum is Zero. --Michael Korda
Same old thing day by day
As my awareness has grown, I can't help but notice the overwhelming number of people I encounter every day who are doing the very same things I did year after year. The fact is, "97% of people are born, live and die without ever learning how to earn money". They only work for money.
Bob Proctor said that and I couldn't agree more. But the real sad fact is that most people will never know that “they can learn how to earn money, all the money they could ever want, and it's no more difficult than learning how to drive an automobile.”
What’s difficult is giving up our old way of thinking about money…the paradigms that we’ve grown up with.
Give yourself a good favour. Change your paradigms!
Bob Proctor said that and I couldn't agree more. But the real sad fact is that most people will never know that “they can learn how to earn money, all the money they could ever want, and it's no more difficult than learning how to drive an automobile.”
What’s difficult is giving up our old way of thinking about money…the paradigms that we’ve grown up with.
Give yourself a good favour. Change your paradigms!
Retirement Fund continues....
1.3 million still haunting you. Don't worry. You actually have more than you think!
To find out, we need to do a 'Where am I now" exercise. This exercise is to determine how much do I actually have right now. Most people who did this soul searching, came out to their surprise finding out that they actually had some money, actually.
By doing this exercise, you are on your first step of planning without realising it. To know how much you have, this weekend sit down, pull out all your records and list down you assets in the category of cash, saving,current and fixed deposit accounts, shares, unit trust, property, business and others. Your liabilities list, i.e. LOAN: property, car, personal, credit cards and any others.
While you are at it doing the consolidation, take your time to reflect that how you may have complicated your life by listening too much to the noise of advertisements and doing what they say. Spend, spend and spend without thinking.
When I do this, I also discover that I keep too many bank accounts which I'm not sure what is it for. Credit cards..., why 5 hah! Mutual fund, unit trust accounts, etc.
Finally, I decided to simplify. Life was meant to be EASY.
To find out, we need to do a 'Where am I now" exercise. This exercise is to determine how much do I actually have right now. Most people who did this soul searching, came out to their surprise finding out that they actually had some money, actually.
By doing this exercise, you are on your first step of planning without realising it. To know how much you have, this weekend sit down, pull out all your records and list down you assets in the category of cash, saving,current and fixed deposit accounts, shares, unit trust, property, business and others. Your liabilities list, i.e. LOAN: property, car, personal, credit cards and any others.
While you are at it doing the consolidation, take your time to reflect that how you may have complicated your life by listening too much to the noise of advertisements and doing what they say. Spend, spend and spend without thinking.
When I do this, I also discover that I keep too many bank accounts which I'm not sure what is it for. Credit cards..., why 5 hah! Mutual fund, unit trust accounts, etc.
Finally, I decided to simplify. Life was meant to be EASY.
...Then the Retirement Fund
You should only start this fund upon successfully achieving your Emergency fund
target.
In my story this was one of my regret of not doing it as early as possible. Otherwise, I would be free even earlier.
The first question here is how much do I require? What is the amount? Again, you decide.
How? Say that you are no longer working:
1. What is be the monthly expenses that you must have to support your expenses?
2. Estimate how long would you live? Q?: How would I know this? Just take your gender
lifetime average. E.g., 72 years for male and add about 5 more years if you are female.
Adding those amount above will generally provide some rough idea on how much you need.
Say you are a female and intend to retire at the age of 50. After retirement, you need about 4,000 as monthly expenses. Therefore, upon retirement you will need roughly about 1.3 million (non adjusted basis) in your saving to cater to your daily needs. What? That is more than a MILLION!
target. In my story this was one of my regret of not doing it as early as possible. Otherwise, I would be free even earlier.
The first question here is how much do I require? What is the amount? Again, you decide.
How? Say that you are no longer working:
1. What is be the monthly expenses that you must have to support your expenses?
2. Estimate how long would you live? Q?: How would I know this? Just take your gender
lifetime average. E.g., 72 years for male and add about 5 more years if you are female.
Adding those amount above will generally provide some rough idea on how much you need.
Say you are a female and intend to retire at the age of 50. After retirement, you need about 4,000 as monthly expenses. Therefore, upon retirement you will need roughly about 1.3 million (non adjusted basis) in your saving to cater to your daily needs. What? That is more than a MILLION!
If you will spend an extra hour each day of study in your chosen field, you will be a national expert in that field in five years or less. -- Earl Nightingale
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