The total of my future expenses each year are $47,919. I know this is logical because my primary sources for information are num.
According to U.S. News & World Report I can likely count on making $120,000 each year in my future job as a veterinarian. My education/training to get that job will cost $300,00 total for all years of training.
I want to save $6,000 for my rainy day fund each year, and $18,000 for retirement each year. If I save $18,000 for retirement each year, by the time I am 65 years old I will have $3.2 million plus interest.
Comparing my future income and expenses makes me realize that the earlier I start saving, the more money I will have once I have retired. I can also see that if I am ever in an emergency before or after retirement, I will have plenty of backup money.
I was wondering what num is. Is that a typo? You are planning to save a lot of money for retirement which is a very smart choice. Your careful and ambitious attitude will help you to conquer any obstacles in your future.
ReplyDeleteJulia, I agree that we must save as much money as possible for retirement and backup funds. Although it takes away from our immediate spending money, it sets us up for security, as well as an enjoyable retirement in the future. Until then, it is best to entertain and support oneself with as little money as possible, only spending money on what you truly value.
ReplyDeleteAfter looking at this post, and other ones, I've realized that I'm going to have to do some serious readjusting of my budget because I am not saving enough for my retirement. This may also be because my career aspirations don't pay as much as yours, but I think there must be a way around this.
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DeleteWe will spend a short amount of time in class using an interest calculator like this one http://www.investor.gov/tools/calculators/compound-interest-calculator#.U8xaFmBqovp -- it is wise to put money in a higher-interest account, instead of a plain savings account. Right now many savings accounts only earn about 1%-- using that calculator, if you start with $18,000 principal and add $1500 each month at a rate of 1% you end up with just over $1,100,000 after 50 years. However, if you have it in an account that earns around 8% (what is considered "good" for stocks/bonds/etc) you'll make over $9million... so it really matters where you put your money and for how long you save it-- compound interest matters A LOT!
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