How long does it really take for you live soley on investment returns?

There are many calculators available to estimate future value of investments. I found this handy calculator which basically gives you number of years you need to work until retirement.

Capture-300x175 How long does it really take for you live soley on investment returns?

Results:
You can retire in  14.3 years with a savings rate of  50% annual expenses  20,000 annual savings  20,000 monthly expenses  1,667 monthly savings  1,667
Those are not my personal number but give you idea that you don’t need massive income to retire early. Be sure to remember to put in your current portfolio value. You will be surprised how early you can retire! I really helps if you can save more when you are starting because compounded interest really kicks in much later.

My personal tips for saving money at young age:

  • Rent a place close to your work so that you can use bicycle for commuting (buy a backpack to carry your stuff while riding bike 🙂
  • Don’t eat out , make your own food. It is much cheaper and healthier
  • Don’t smoke or drink. Just again unnecessary costs and its unhealthy also
  • Buy quality clothes that last long
  • Keep track of your living expenses with excel or google finance. Think how you can improve.
  • Go supermarkets with good value food.
  • Restrain yourself of buying expensive stuff when portfolio is getting bigger
  • Remember that you can do much more later when you have larger dividend stream in portfolio

 

I have more less lived like this. I can retire in three years or so and working only 10 years. This all with basic engineering degree and average paying job.

 

Link to the calculator

 

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