Paychecks & Balances is a fun and informative podcast covering work and money for rising professionals with hosts Rich @IamRichJones and Marcus @THEMarcusGarret. Read more about us here or visit Ask P&B to submit your questions! – Rich & MarcusThis free tool will tell you your #FIRE (Financial Independence) savings goal in 15mins or less. Click To Tweet
Have you struggled to calculate your “retirement number”? Where should you start your journey to financial independence? We’ve made it simple, and you can answer both of these questions in 15 minutes or less with our ‘How to start a F.I.R.E. (Financial Independence / Retire Early)’ planner. It’s available completely free with email sign-up at PaychecksAndBalances.com/email. We don’t spam! As an added bonus, we’ll include two other personal finance tools with your sign-up:
In total, less than one hour can change the next 15 years of your life. Download your free copy today!
Step 1: There are two ways to use our 15min Financial Independence / Retire Early (FIRE) Plan worksheet. If you already know your retirement savings goal and/or FIRE number, then use Investor.gov’s savings goal calculator to determine how much you need to save each month in your IRA or 401k.
Step 2: If you’re unsure, select from the Example FIRE Retirement Number column on page 5 that best matches your personal finance goals. Visit Investor.gov’s compound interest calculator to estimate exactly how much you would need to save each month in your self-guided investments, 401k or IRA to reach your FIRE. We recommend using an estimated annual interest rate of 7% with a range of interest rates (variance) of +/- 3%. With this estimate, the results on Investor.gov will reflect your returns on investments at interest rates of 4, 7, and 10%.
We’ve also provided additional space on your worksheet to calculate your FIRE based on 80% of your expected salary; various estimated annual expenses; or you can adjust for unknown expense or cost of living (inflation) of up to 30 to 50 percent. For detailed instructions on how much you need to save month-to-month to retire a millionaire, visit How to Save 1x Your Income by Age 30 on an Average Salary and Retire a Millionare.
Other Helpful Resources
- Has the FIRE Movement Burned Out?
- CBS News ft. Paychecks & Balances: Making Your Money Matter (Video)
- Investor.gov – a great and easy tool for calculating the monthly amount needed to reach your FI/RE goals
- PB73: Mastering Financial Independence and Student Loans with Robert Farrington
- Robert Farrington
- Twitter: @CollegeInvestin
- Facebook: The College Investor
- Blog: FIRE (FINANCIAL INDEPENDENCE/RETIRE EARLY) FOR NON-FRUGAL PEOPLE
- Robert Farrington
- Why we chose to use the “Four Percent Rule“
For all your other personal finance needs, we’ve partnered with NerdWallet at PaychecksAndBalances.com/Tools or check out the top 15 Personal Finance books we’re reading and reviewing so you don’t have to PaychecksAndBalances.com/Books.
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