Just checked my credit card statements, so currently I spend $3,500 per month.rrosenkoetter wrote:$44k will probably be enough if you have the house paid off.verakot wrote:I will not have the following expenses:GRT2BOUTDOORS wrote: What expenses do you have today that you will eliminate by age of retirement?
If you make $100K gross today, how much do you come home with - I would estimate about 25-30% less or roughly 60-70K. 44K divided by 65K is about 68% of total after-tax income today. That is reasonably close to the 80% figure.
- no mortgage expense - should be paid off completely
- no car/other loans
Basically it will only be necessities - food/clothing etc. So yes, $100K gross gives about $70K after taxes. So 44K will be about 63% of current income.
Do the math. How much do you spend a month, not counting your mortage? Less than $3700 a month? Not what you make, what you SPEND each month, not counting mortgage.
$3700 a month is a solid chunk of money if all you need is food, utilities, property taxes, some insurance (car and house) and a little fun.
How much do you spend NOW each month? Until you answer this question, you'll have no idea if you're on-track to retire.
You are right, it will be a little fun then.