Special Bonus: Your Number!

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  • May 20, 2010

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For a journey to begin, it has to have an end …

Until you have a clear, new destination, you are just going to trundle along the same road that you always have.

But, I am betting that your new destination – Your Life’s Purpose (found as a result of one month of very hard mental/emotional ‘work’) – will also enter a new destination into your personal financial GPS and it will even find the shortest/quickest route for you!

Now let’s find out exactly how much fuel you will need to reach your destination … let’s find Your Number!

After completing the last few KLE’s, you either came up with:

1. A Big Spending Vision, or

2. Just an inflation-adjusted view of your current spending.

If 2. … congratulations, you have reached your destination: it’s a financial destination that a job at Starbucks and 20 years or so of 15% savings into your 401k and bit of debt reduction can give you.

Thanks for visiting!

But, if 1. … commiserations: your life just got incredibly difficult … at least for a while.

Then, incredibly fulfilling!

First, I have a special bonus that will make pulling all of the information that I asked you to put together over the past few days MUCH easier.

Better yet, it will make calculating your Number automatic!

Note: You need to be a Premium Member to view this content:

Congratulations!

That’s Your Number …

… that’s how much you need in the bank on the day that you choose to ‘retire’, to begin your Life After Work.

Task 1: Complete the spreadsheet; be sure to take your time, but don’t worry if you can’t pin down every single number accurately. Your best estimates will probably be good enough for now, and you can update the spreadsheet any time you like.

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Name and State (eg John, MO)
What Is Your Number ($ Amount)

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May 20th, 2010
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Comment Number:
1
Written by:
dustbusterz
Posted on:
May 31, 2010 at 7:28 pm

$1,812,407.00 This number does not seem right. Somehow I have always come up with higher numbers. Of course,once Married,this could be double ,or about $4 Million.

Comment Number:
2
Written by:
AJC
Posted on:
June 1, 2010 at 1:41 am

Steve, excellent observation. The problem could lie in your recurring expenses (KLE 18) … these should reflect the costs that you EXPECT to have WHEN your reach your Number (and, probably stop working … or, at least no longer HAVE to work).

So, if you expect to be married by then, you need to include those costs (in today’s dollars, then apply the inflation adjustment of KLE 20); same for school fees and/or college; golf club expenses; and, so on.

BTW: $1.8 million is accurate enough for our purposes and FAR easier to remember 😉

PS If you are still stuck, send me your spreadsheet [ajc AT 7 million 7 years DOT com]; same offer applies to anybody else who’s stuck 🙂