Retire Early: Tips on Budgeting

During my previous post I talked over how much money you are going to need to save in order to have a wonderful retirement


. From the chart listed below, you can notice that you should need about $40,000 a year or about $800,000 to live quite comfortably for twenty years. It offers space for amusement, traveling, and the everyday things you expect in your life right now. Read on to discover additional tips on budgeting and methods for how to manage money so that you can expedite your retirement date. Keep in mind these figures look at the average couple.

Monthly Break Down:

Utilities/Home Taxes.......... $800

Food............................. $500

Auto insurance..................... $125

Property Insurance................ $ 75

T.V/Phone/Internet............. $150

MISC..................................... $750

Holiday................................... $400

Car........................................ $200

MONTHLY TOTAL............. $3000

YEARLY TOTAL............. $36,000

YEARLY TOTAL............. $36,000***

***I rounded everything to $40,000 per year


How Is It Possible To Save $800,000?

Let's assume that the average rate of return is close to 10% on your retirement contributions. Here's a simple chart of how much you'd need to save monthly so you and your better half can retire with $800,000 by the age of 60.


If you start to invest at age:

20 you need to contribute $125 per month

30 you need to contribute $350 per month

40 you need to contribute $1044 per month

45 you need to contribute $1915 per month

What if you wish to retire sooner? Say age 55!

If you start to invest at age:

20 you need to contribute $209 per month

30 you need to contribute $598 per month

40 you need to contribute $1915 per month

These amounts really aren't that tough to achieve. If you have two dependable incomes, the contributions you have to make would barely put a dent into your existing life-style. If you're married at age 30 tucking away $10 daily is simply worthwhile for your future.

I'm going to mention it once again! You and your other half only have to contribute $10 daily, each, (total of $20) to have the $800,000 needed to retire comfortably! Isn't that one of the best tips on budgeting you could follow?

You'll find lots of methods to make your retirement dreams! Obviously the faster you start the more likely you are to achieve those goals. The reality is the longer you procrastinate the more difficult it is going to be, to be completely comfortable after age 60. Begin immediately and be free later on. Please check out more of my blog for more how to manage money tips. If you sign up you'll also get the free E-Book, free budget spreadsheet, free calculators, several tips on budgeting and links to all kinds of tools. We also have a few leaked videos that help with your finances.

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Brandon - About the Author:

You can pay off your debts and save money at the same time! Say goodbye to your boss forever! A blog that will show you the secrets of the wealthy: http://www.howtomanagemoneytips.com Get a free budget sheet, net worth calculator, tools and more: http://www.howtomanagemoneytips.com/social.html


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