![]() Reply to This Thread Comment (required) Name (required) Email (required, always hashed, never used nor published) Website (optional) Post comment Note that comments won't appear until approved. ![]() I just did a quick excel sheet, and the answer to that question that looks like around 24 years: year ![]() a savings rate of 0%) how long would it take to reach a 50% savings rate if you get a 3% raise every year and save it? For instance, if your income currently equals you expenses (i.e. Check out this chart:Ģ comments for The Math Behind The Shockingly Simple Math Behind Early RetirementĪt that point, I’m not sure it could be solved in a single equation, although I could see something along the lines of how long would it take you to reach a certain savings rate. The Shockingly Simple Math Behind Early Retirement This is the blog post that shows you how to be wealthy enough to retire in ten years. Lastly, one nice thing about this math is that it isn’t linear - it has a nice curve to it. CRASH TEST DUMMIES sold over 4,910,000 albums, including 2,000,000 in the United States and 100,000 in the United Kingdom. My guess would be either he had multiple interest periods annually (versus my one) or that fact that his assumption of 5% returns included being adjusted for inflation. Alternative 90s Songs, Ranked.The Best Pop Songs of the 90s 90s Greats Still Active Today. Read JL Collins The Simple Path to Wealth. =LOG10(((1.25 * A3) / (1.05 * B3)) + 1) /LOG10(1.05)Įxcept the first row, since it will result in a divide by zero error. Use the final portion of your MMM to invest in the stock market. Each row looks something like this: =A2-5 Let’s try plugging the numbers in to see if I get the same results Mr. Along the way, you might find your annual expenses melting away, which makes things ever-more-attainable (as shown in the shockingly simple math behind early retirement post). This explains why, if you’re able to save 100% of your income, then you can retire right now: you have no expenses! 4 is a perfectly good answer, which means 25 times your annual expenses is a perfectly good goal to save for. 100% of your income = expense rate % + savings rate % Now you’re doing the same for MMM in terms of plain-spoken demystification of the shockingly simple math behind the 4 Rule.
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