MONDAY MONEY TIP PODCAST: How To Never Have A Car Payment

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Another episode of the Monday Money Tip Podcast is live! Many people believe they will always have a car payment but we’re here to tell you that this is simply not true. On today’s episode, we’ll share what you can do in order to never have another car payment. In our Current Money Events segment, we will cover the volatility in the stock market and later hear a success story from a woman who became debt-free including her mortgage! 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
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Stitcher
Spotify
Website

Show Notes

About the Episode:

  • We’ll share what you can do in order to never have another car payment. 

  • Get an update on the stock market in our Current Money Events segment. 

  • Hear a success story from Diane, who paid off all her debts including her mortgage. 

  • Hear how depreciation can (and will!) affect your vehicle’s value. 

Resources:
I Was Broke. Now I’m Not. 
Oxen Book
Known, Upcoming Non-Monthly Expenses Calculator
CarFax Article
Investment Value Calculator

Quote of the Day: “If you think no one cares if you’re alive, try missing a few car payments.”

Have A Debt-Free Vacation With This Tool

Are you going to take a vacation this year? My guess is that your answer is YES. You have probably already decided when and where you want to go and have started dreaming about it. Now, how are you going to fund this vacation you’ve dreamed up? If you start planning now, you could fund it with cash! 

By planning ahead of time, you can more accurately see just how much each aspect of your vacation will cost. You can anticipate travel, gas, lodging, food, entertainment and other expenses. Once you know how much your vacation is expected to cost, you can save money ahead of time! 

We recommend using our Mini-Budget Tool to plan your vacation spending. You can really plan your vacation three different ways to see different scenarios and how they affect your bottom line. If you spend your money on paper, you can stay within budget during the trip. 

Setting a budget and planning ahead of time is key to having a debt-free vacation. And I guarantee you, a debt-free vacation is a million times better than the alternative. You can have all the fun with your family without the stress of the incoming credit card bill. 

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MONDAY MONEY TIP PODCAST: Maximize Your Tax Refund

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This week on the Monday Money Tip Podcast, we’re sharing what you can do in order to maximize any tax refund that you may receive this year! We know that many people will receive a tax refund and we want to make sure you are able to maximize any money that comes your way! In addition, we will be sharing a success story from a man who created a budget and was able to pay off three medical bills and begin tithing consistently! 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • Hear a success story about a man who has paid off three medical bills since attending a Financial Learning Experience. 

  • Get advice on what you should do with your tax refund this year. 

  • We’ll share how you can use our Mini-Budget Tool to make decisions about your tax refund. 

Resources:
IWBNIN Next Steps
IWBNIN Ladder
Mini-Budget Tool

Quote of the Day: “When you tell your money where to go, you’ll never have to wonder where it went.”

How Much House Can I Afford?

Are you looking to purchase a home in 2019? Many people buy a house outside of their price range and end up in a huge financial mess. This doesn’t have to be you! Before you get ready to purchase a house, you should check out our Mortgage Payment Calculator to help you decide how much house you can really afford. 

Before you purchase a house, you should consider a couple of things:

  • How much should you spend on housing? Generally speaking, you should spend about 25% of your take home pay on housing. This amount can change depending on the amount of debt you carry. If you have no debt, you can likely accommodate up to 33% of your take home pay on housing. If you have a high amount of debt, you should probably only spend about 18-20% of your take home pay on housing. 

  • How much of a down payment should you have? You should put down AT LEAST 5% down on a house. 

  • How much should you borrow to buy a house? Generally, you could spend between two to three times your annual income on a home. This means if you make $75,000 a year, your mortgage should range from $150,000 to $225,000. 

Once you have this calculator pulled up, all you have to do is enter the expected interest rate, the number of months of the mortgage period and the amount of the expected loan. You can use estimates to calculate potential mortgage payments. You can then use this number to help you decide how large of a mortgage payment your budget can really accommodate. 

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MONDAY MONEY TIP PODCAST: Top Money Questions

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We’ve made it to the last Monday of January! That means that this week on the Monday Money Tip Podcast, we will be answering the top money questions from our listeners. Questions this week will range from payday loans to how credit scores really work. We’ll share the importance of having a clear financial vision for your future. Lastly, you’ll hear a success story from a woman who previously relied on bank overdrafts to make it from month to month. 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • Joe will share the importance of having a clear financial vision for your future. 

  • Hear a success story from a woman who previously relied on bank overdrafts to make it from month to month. 

  • We’ll answer rapid fire questions asked by you! These questions range from payday loans to how credit scores work. 

Resources:
IWBNIN Free Tools
Mortgage Payment Calculator

MONDAY MONEY TIP PODCAST: All About Budgeting

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Are you ready to get your budget under control? In Episode 29 of the Monday Money Tip Podcast, you can do just that! We’re here to share with you how they make budgeting EZ each and every month. We will also share some statistics about the average car payment that may shock you! Our success story this week comes from a participant of our last budget challenge and you’ll hear how it changed her life! 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • Hear some alarming statistics about the average car payment. 

  • Megan shares an exciting story from one of our last Budget Challenge participants. 

  • I share how you can become good at budgeting. 

  • Learn the key to budgeting with irregular income. 

Resources:
IWBNIN Next Steps – Insurance
Average Car Payment Article
Budget Tools
Budget Challenge

Quote of the Day: “The plans of the diligent lead to profit, as surely as haste leads to poverty.” – Proverbs 21:5

Debt Freedom Date Calculator

Are you ready to pay off some serious debt in 2019? To say “goodbye” to the car payment, Sallie Mae and credit cards? If you said yes, the Debt Freedom Date Calculator found HERE on our website can really help you. This tool combined with the Debt Snowball Technique is how I became debt free and you can too! 

Step One: Identify All Debts Owed (Lender, Amount Owed, Monthly Payment)

Make sure you list out all of the debts that you owe and how much each one is. You can check your credit report just to double check that you have no outstanding debts that you may have forgotten about. 

Step Two: Sort Debts By Amount Owed (Smallest to Largest)

List your debts out by sorting the debts from smallest to largest by the amount owed. Make sure you have sorted by the amount owed and not the payment amount. 

Step Three: Pay Minimum Payments on All Debts, Except The Smallest Debt

Make the minimum payment on all of the debts except the smallest one. It can be very tempting to start to attack your credit card bills or car payment but if that is not the smallest amount you owe, make minimum payments for now. 

Step Four: Apply Any Extra Money to Smallest Debt

If you have leftover money in your budget, apply that to the smallest debt that you owe. The quicker you can see a victory, the more effective this technique will be! 

Step Five: When Smallest Debt is Eliminated, Add Its Monthly Payment to Next Smallest Debt

Once you have paid off the smallest debt, take the payment you were allocating towards it, and apply it to your next smallest debt. That way, as you pay off more and more debts, you’re creating a debt snowball! 

If you would like more information on this topic, check out this quick YouTube video HERE where I explain the technique and give visual examples. 

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MONDAY MONEY TIP PODCAST: 8 Ways to Speed Up Debt Elimination

This week on the Monday Money Tip Podcast, we’ll be sharing eight ways that you can speed up your debt elimination process this year. If you made a New Year’s resolution to pay off debt, this information can help you make some significant headway! I’ll also check in on your other resolutions that you made at the beginning of the month and share how your daily habits can help you accomplish these goals. We also have a success story from one of our Savings Challenge participants who saved $6,000 in their annual budget! 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:

iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • I share how you can carry your New Year’s resolutions throughout the year by focusing on your daily habits. 

  • Megan and I discuss eight specific things you can do to gain significant traction in your debt payoff journey. 

  • Hear a success story from participants of our last Savings Challenge who saved $6,000 in their annual budget. 

Resources:
0% Balance Transfer Credit Cards
Annual Plan Tools
Budget Challenge
Savings Challenge
Episode 26
Episode 27
Salary.com

Quote of the Day: “I’ve never seen anyone achieve financial freedom by obtaining lots of credit card points and airline miles.” – Joe Sangl

Debt Payoff Spectaculars

Did you make a resolution this year to finally off that debt that has been hanging over your head? Once that debt is gone, that payment will be freed up for you to start making progress towards your plans, hopes and dreams. If you need a visual tool that can help you gain traction in your debt freedom journey, you should check out our Debt Payoff Spectaculars found HERE on our website. 

These spectaculars are incredibly easy to use and can give you a visual representation of your debt being paid off. All you have to do is take the amount of debt you owe, and divide that by the number of squares on the payoff spectacular. This will give you the amount of debt that each square represents. Each time you make a payment in that amount, color off a square! 

While it may sound simple, there is something cathartic about visually marking that debt out of your life. If you’re paying off a truck, you can physically see the amount of that truck that you now own and you will find yourself wanting to color more and more squares. You might even go crazy and adjust your budget to cut your spending and allocate more towards debt! 

Check out our Debt Payoff Spectaculars HERE

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MONDAY MONEY TIP PODCAST: Sustaining Goals

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Welcome to 2019 where the Monday Money Tip Podcast will be live every single Monday! We hope by sharing tips and encouragement each Monday that 2019 can be your best financial year yet! To start us off, this week we’re discussing how you can actually sustain your New Year’s resolution instead of ditching it by February. We also have a success story from a man who paid off $70,000 in credit card debt and we will ask Joe some fun hot seat questions! 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:

iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • Hear how you can create and actually sustain goals in 2019 by celebrating milestones along the way. 

  • Megan shares a success story from Michael who paid of $70,000 in credit card debt. 

  • Joe shares the importance of meeting with a financial coach, sharing your journey and being a continual learner. 

Resources:
IWBNIN Next Steps
Upcoming Events
Oxen
Mint
Personal Capital

Quote of the Day: “If you discover ways to sustain good financial decisions over years, even decades, you’ll never lack for anything.” -Joe Sangl

How to Have The Best Financial Year Ever

Are you tired of feeling “stuck” financially? Are you ready to start making significant moves in your financial journey and even have your best financial year ever? There is no better time than 2019 to achieve just that. You still have a couple days to add your financial goals to your list of New Year's Resolutions. 

You can start by identifying your current status. We know that most people can identify with one of the three categories: struggling, stable, or surplus. Once you know where you fall, you can clearly determine your next steps. 

Here at I Was Broke. Now I’m Not., we follow a financial ladder in order to have a fully funded life. Check out a copy of the ladder so that you can identify what rung you are currently on and what your next step is. CLICK HERE TO DOWNLOAD YOUR COPY TODAY!

If you feel like you are in the strugglingcategory, you should strive to achieve rungs one, two, and three this upcoming year. In doing so you would have set goals, built financial margin with a baseline savings account and start to see your money working for you in your investments. 

For those who identify with the stablecategory, you should be position yourself to be able to move to the surplus category. You can do this by completing rungs four and five of the ladder. If you were able to complete those two steps in 2019, you would have eliminated all of your non-house, non-business debt (bye credit cards!) and have built up significant margin with three months worth of expenses in savings. This will allow you to launch into the next category and upwards on the ladder. 

If you are currently enjoying the blessings of the surpluscategory, you are almost ready to live a fully funded life and have the ability to positively impact the lives of all those around you. At this point, you can strive to achieve rungs six, seven, and eight of the ladder. You will not only be debt free, but you will also be investing 30% of your gross income into investments. 

You should also set five key financial goals for the year.If you don’t set any goals, you are far less likely to accomplish anything at all. Consider setting goals in each of the following categories: income, giving, saving, investing and debt elimination. I explain each of these in detail Episode 25 on the Monday Money Tip Podcast. You can check it out HERE

Once you have set your goals, make sure you establish accountability.If you share your goals with someone who has similar goals as you, you will be less likely to falter and give up along the way. Many people have workout buddies when they are trying to get into shape. Consider this a workout buddy for your finances! 

Lastly, make sure you are taking steps to increase your financial education.This step is not one that ends in 2019 but should be continued year after year. Read some financial books, hire a financial coach. Start learning and don’t ever stop. You won’t regret it. 

No matter where you are financially, you can make significant strides this upcoming year and position yourself to prosper. Make 2019 the year that you accomplish more than you ever did before on your financial journey. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

MONDAY MONEY TIP PODCAST: Christmas 2018 Special

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Merry Christmas Eve! Today on the Monday Money Tip Podcast, I’m sharing how you can balance striving for future goals while still being content with what you currently have. We’ll talk about our R&R at the end of the year and goals you should consider for next year. We will also share a very special success story and a big announcement about the future of the Monday Money Tip Podcast

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • Joe shares each of the categories in which you should set goals for 2019. 

  • Hear a very special success story that relates directly to the Monday Money Tip Podcast. 

  • Learn how to balance striving for future goals and being happy with what you currently have. 

Resources:
Annual Plan Tools
Budget Tools

Quote of the Day: “But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” – 1 Timothy 6:6-10

Known, Upcoming Non-Monthly Expenses Calculator

Have you ever prepared a budget and faithfully followed it only to have it crushed in the middle of the month because of an expense you forgot about? Does Christmas seem to creep up on you every year? Have you had to suddenly replace the tires on your car? Chances are, you answered yes to at least one of these questions. 

These budget busters are called “Known, Upcoming Non-Monthly Expenses.” The reason these expenses get forgotten is because they are non-monthly so they tend to be pushed to the back of the mind until the bill suddenly comes in the mail. But when they do finally appear, they can create a financial emergency causing you to either break your budget or go into debt. 

Think about what non-monthly expenses you know will come up throughout the year. Here are a couple of common expenses that people have: 

  1. Car tires need to be replaced 

  2. Heating & Air goes out 

  3. Christmas 

  4. Vacation

  5. Life insurance premium

  6. Property taxes 

  7. Health Insurance deductible 

Once you have these expenses listed out, you can plan to save monthly for them in your regular budget. Check out our Known, Upcoming Non-Monthly Expenses Calculator to do this with ease. Below is an example of the calculator in action: 

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By knowing what these expenses are and saving for them monthly, you’ll no longer have to “come up” with the money when the bill arrives. You will simply be able to pay the bill in cash. A cool feature of this tool is that not only does it calculate what you would need to save per month, but it also calculates the amount based on different pay frequencies. If you get paid twice per month, you would need to save $289.58 out of each paycheck. For a bi-weekly frequency, you would save $267.31. Regardless of how often you get paid, you can save accordingly and have the money available when you need it. 

Tips for using the tool: 

  • Be sure to recalculate your monthly savings number at least once per year. 

  • Don’t forget more long-term expenses such as college, weddings, vehicle replacement, and major home renovations. 

  • Make your savings for these expenses AUTOMATIC by establishing an auto-draft. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

2018 Christmas Bundle Sale

Still looking for the perfect Christmas gift? Look no further! Give someone the gift of financial freedom this Christmas! Check out our Christmas Bundle HERE

During the month of December, you can get a copy of I Was Broke. Now I’m Not. (fundamental financial principles), Oxen: The Key to an Abundant Harvest (basics of investing), and What Everyone Should Know About Money Before They Enter The Real World (designed to help young people prevent money mistakes) for just $48 plus FREE SHIPPING! That means that you’ll save over 25%! 

If you know someone that could benefit from these books (and I’m sure you know more than one!), pick up the bundle today! Or, snag a bundle for yourself so that you can go into 2019 with a better handle on your finances as well! This offer is valid for the month of December so check it out HERE today!

Set Financial Goals For Next Year

As we move closer and closer to a new year, I’m sure many of you are considering the goals you want to accomplish in 2019. I know I am! As you think about your goals, I would encourage you to also set financial goals that you can aim to achieve next year. You should consider setting financial goals for the following categories: 

Earnings/Income Goal: Set a goal for how much money you want to earn this next year. The more valuable you can be in your career, the more money you can bring home to your family. 

Giving Goal: How generous do you want to be this upcoming year? Do you want to give more to your church or have different charities you would like to support? Set a goal for how much money you want to be able to give away next year so you can be intentionally generous. 

Saving Goal: How much money do you want to put aside in savings? Do you want to have a fully funded emergency savings? Do you need to start saving for a new vehicle? You could even get ahead of the game and start saving for Christmas next year in January! How awesome would it be to have a full Christmas fund by September of 2019? You should set a savings goal to get ahead of expenses that will pop up. 

Investing Goal: Do you want to increase the amount that you contribute to your retirement fund? We have never heard anyone say “I have saved too much for retirement”. Decide how much money you want to start putting away in investment accounts for the future. 

Debt Elimination Goal: Are there any debts that you want to see leave your life for good? Is there a medical bill you need to pay off? Are you ready to break up with Sallie Mae? I remember when debts left my life and it was a great feeling. Make sure you have set a goal for how much debt you want to be rid of by the end of 2019 and never look back! 

Once you have decided on the goals you want to accomplish, write them down! When you physically write something down you are way more likely to actually do it! How awesome would it be if you could end 2019 being more generous with more income, more money in the bank, more of your money working for you AND less debt? Think about your goals, write them down, then make it happen. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

MONDAY MONEY TIP PODCAST: Getting Prepared for 2019

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We hope everyone is enjoying their Christmas season and is well on their way to having a debt-free Christmas! On today’s episode of the Monday Money Tip Podcast, Joe and Megan are sharing what you should be doing in order to make 2019 your best financial year yet. Joe will explain the importance of goal setting and which categories you should focus on this upcoming year. You will also hear a success story from a woman who is experiencing her first-ever debt free Christmas in 16 years. 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website

Show Notes:

About the Episode:

  • Joe shares what you can do in order to make 2019 your best year financially. 

  • Megan and Joe discuss the importance of setting goals in 5 different categories for the new year. 

  • Hear a success story from a woman who is experiencing her first-ever debt-free Christmas. 

Resources:
IWBNIN Next Steps
Known, Upcoming Expenses Calculator
Ally Bank
Marcus Bank
Discover
American Express
Personal Capital
Mint
Annual Plan Tool 

Quote of the Day: “You never have to recover from a great start!” – Ken Friar

Yearly Financial Goals

With each passing day, we are getting closer and closer to a new year. A new year brings new goals and resolutions. As you think about the goals you would like to achieve in 2019, I would encourage you to set financial goals as well. 

As you think about the financial goals you want to achieve in 2019, you can use our Yearly Financial Goals template to help you plan. All you need to do in order to use this template is print! After printing, simply write down your financial goals for 2019. Then, you can categorize them using the key at the bottom of the document (Earnings, Giving, Saving, Investing, Debt Elimination). The last column of the template allows you to choose a date by which you want to accomplish your goal. 

Make sure you take some time this December to plan out your goals for 2019. Once you know what you want to accomplish, write it down! You are way more likely to complete something if you have it in writing. Hang this template up on your fridge so you can see it and you can also see if you’re making progress towards your financial goals. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

How to Have A Debt Free Christmas

What if I told you that you don’t have to go into debt Christmas shopping this year? That you can buy your gifts IN CASH and can avoid those dreaded credit card bills in January? Can you guess how you accomplish this? That’s right, a budget. 

Christmas is a known, upcoming, non-monthly expense. That means that we know that Christmas comes on the same day every, single year and we should plan for it accordingly! In the Sangl household, we do this by saving a little bit for Christmas each month. 

First, we decide how much we want to spend on Christmas altogether. Then, we create a list of every person or organization that we’re planning on buying a gift for and decide how much we plan to spend on each person. All that’s left to do is make that budget equal EXACTLY ZERO. Once you have your plan put together, you can do your Christmas shopping guilt-free!  

You can download a copy of one of our FREE BUDGET TOOLS HERE

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For more tips on how to have a debt-free Christmas, check out our full episode of the Monday Money Tip Podcast HERE

For more information on how to create a Christmas Mini-Budget, check out this related blog post.

2018 Christmas Bundle

What’s better than reading all of my books and getting your financial life in order? Reading all of my books and getting your financial life in order for a fraction of the price! The Christmas season is the perfect time to take a look at your finances and say no to incurring more debt this year! 

For the month of December, you can purchase our Christmas Bundle of all three books, for just $48 plus FREE SHIPPING. You will receive a copy of I Was Broke. Now I’m Not. (focuses on fundamental financial principles), Oxen (solely focused on investing), and What Everyone Should Know About Money (designed to help young people prevent money mistakes). 

During this time of the year, most people are focused on buying gifts for other people and that is awesome! You should be generous! But, don’t forget about taking care of yourself as well. If you take advantage of this offer, you will be armed and ready to take on the new year and make 2019 your best financial year yet! 

Remember, this offer is available throughout the month of December so make sure you check out the store starting December 1st!

Retirement Nest Egg Calculator

Do you know how much money you will need per year in retirement? Do you know how that number will be affected by inflation? I would encourage you to check out our Retirement Nest-Egg Calculator Tool. While it may trigger a shock to your system when you see the numbers, it can help you get into gear to retire well. 

This calculator is incredibly easy to use and only needs two pieces of information from you! All you need to do is enter the amount of money you would like annually in retirement and how many years until you expect to retire. After that, the calculator will compute the amount of money that you need to have saved and how different annual rates of return will change that number. 

Below you can see a calculation that I ran for an “annual amount I want” of $75,000 if I hypothetically retire in 20 years:

 
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As you use this calculator, keep a couple of things in mind: 

  1. The calculator assumes that you will never touch the principal. 

  2. The calculator assumes that you will give your nest-egg a “cost-of-living-raise” of 4% each year.

  3. This calculator adjusts the “annual amount your want” for an average annual inflation of 4%. 

So, at 4% annual inflation, I will need $164,334 per year in 20 years to have the same purchasing power that $75,000 has today. 

The bottom six rows tell you what you need to have in your nest-egg at different rates of annual growth. At 8% annual return, I would need $4,108,356 when I retire. That number drops significantly if I expect growth of 12% and I would only need $2,054,178 when I retire. 

These numbers may seem astronomical and you might feel like you will never build a nest-egg of that size. But remember, the power of compound interest can work in your favor! By starting early and investing consistently, you can watch your nest-egg grow to numbers you may have only dreamed of. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.