The gross value
Previously I asked the question of how much it takes to
retire early. This same question also is how much it takes to become
There were a range of answers all the way from a retirement
pension that only provides $24,268.40 per year, through to a real case where
the money target was $384,000 per year.
Using average figures along with a multiplier of 2.5 I
rounded up to come up with a number of $150,000 per year net.
So what does $150,000 look like?
What is retirement?
When most people think of retirement the first thing people tend to think about is the freedom that comes with not having to go to work each and every day. Taking this further the vast majority of people ‘want’ to retire early, but very few dare to explore the options available to make the dream a reality, until time is heavily against them.
But retirement usually has a few common factors namely, having enough money available to support their quality of life without needing to work for more.
School and Life Decisions
Do you know that you’ve been setup for financial failure? It’s
a confronting question that not many people would want to say ‘yes’ to. However
since your earliest years this is exactly what you’ve been prepared for, and
you don’t even know it. Here are the reasons why.
The first place that sets you up for financial failure is the school system. As confronting as this may be, the school system simply prepares you for more schooling and only at the very end does it prepare you for entry into the workforce as an employee and this is only at the technical level.
Do you want to retire early?
Who doesn’t? Besides you should. But if you really want to become financially independent before ‘retirement’ then there are some things you absolutely need to know about your superannuation fund and how it isn’t going to help you get there.
Simple question! If you could replace a person with a
program or device that doesn’t ask for time off, talk back and is just plain
simply cheaper over any time period, what would you do?
Business is Business, and when cases like this pop up the
answer is unfortunately quite simple.
There is a saying that Accounting is the language of
business, and at the bottom of all of the numbers expenses are always minimised
so that profits can be boosted. It’s as simple as that.
If you’re seen as an expense … watch out!