I meet a lot of people who want to retire early. Most people think that retirement calculations are so complicated that they have to pay a fortune to a financial advisor to figure out how long before they can personally retire.

It doesn’t have to be so complicated. The mathematics is the same, regardless of your income.

What’s important is your savings rate – the percentage of your income you save for your retirement. Unfortunately, many people are spending all of their income i.e. their savings rate is 0%.

Mr Money Mustache says if you haven’t put away anything, and you start today, here’s how long it’s going to take you to retire, based on your savings rate:

retirementThe reason is that saving is a double-edged sword. Firstly, it grows your retirement nest egg. But it also means you are living off less, and therefore your nest egg doesn’t have to be so big to retire.

So by all means, work at increasing your income. But no matter how much income you make you have to decide to keep a portion of everything you earn. Even if you suck at maths, everyone can start making small changes to reduce their expenses which will literally buy back years of your life.

If you want to know more about creating financial independence, and how to calculate your unique financial independence day, download the At Home Profits app from iTunes today.

 

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