For each of these, my answer is “neither”. You may start to wonder things like “Does my mortgage count for savings or expenses?” Or “What about a college fund for my kids?”. When looking at your take-home pay, at first glance it can be pretty straight forward to divide things up to Savings or Expenses. Sounds easy enough but this is probably where the simplicity ends.
SHOCKINGLY SIMPLE MATH BEHIND EARLY RETIREMENT PLUS
To expand on this, your savings rate is simply the amount of money you save each month divided by the amount of money you save month plus the amount of money you spend. Your savings rate, as a percentage of your take-home pay. Your time to reach retirement depends on only one factor: In this article, he details how the most important number in your financial independence journey is: your savings rate. This idea purely comes from MMM blog on this same topic. The Shockingly Simple Math Behind Early Retirement This leads me to the topic of this article. For example, there’s the detailed analysis on killing your $1,000 grocery bill or how investing about half your take-home pay will allow you to retire in about 17 years. One thing that MMM does great is, with a few assumptions, he reduces complex investing strategies into simple rules of thumb. He wasn’t my introduction to personal finance but his content fundamentally changed my approach to personal finance and, more than anything, made me less afraid of digging deeper (as opposed to just accepting some very rough cookie cutter solution – cough Dave Ramsey cough). Money Mustache (referred to as MMM hereafter). It may come as no surprise but I am a fan of Mr.
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