Retire at 40! When you are 30 years old, what should you do to plan and save it to your FIRE pension (free FIRE retirement plan download)

Apr 28, 2021

do you know?

Life can be practiced step by step according to your own plan!

Retirement at 40 is OK!

As long as you are 30 years old, start preparing now, start a FIRE retirement plan for yourself, think about how to save enough pension, retire early , and move towards financial freedom.

So, how do you plan for FIRE retirement?

You must be troubled!

Don't know how to plan, how to start the first step.

Don't worry~

Shumeng shares with you a set of financial thinking and methods that he has been exploring for a long time, and sorted out four steps for your reference. As long as you think according to this method, you can make the most suitable FIRE retirement plan for yourself.

The first step is to find the reason for the hard work

ask yourself

Why retire at 40?
How eager are you to retire at 40?
What is the reason for the hard work ?

For example: I feel that I have worked for ten years, and I still can’t see the future; I am busy with money every day, and I don’t know why I am busy; I feel that life is not only about making money, but also earning freedom.

Then, help yourself make a dream version, write down the "reasons for hard work" , put it where you can see it at any time, and urge yourself all the time.

Whenever you want to spend money, or want to give up, take a look at the dream version and remind yourself that you have a 40-year-old FIRE retirement plan to practice, so the chances of saving to retirement will be much higher~

"As long as you "hardly remember your reasons" , it's strong enough!

You can practice the FIRE retirement plan"

Step 2: Figure out how much FIRE pension to prepare

To figure out how much to prepare for retirement, you can use the current FIRE 4% rule to try it out.

Enter below, how much you spend each year, it will automatically calculate for you within 10 seconds, how much to prepare for retirement.

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Step 3 Make a FIRE retirement plan that suits you

Create your own retirement plan with EXCEL. Don't be afraid to use EXCEL, it is a good trial calculation tool for planning, as long as you can simply add, subtract, multiply and divide.

It can help you figure out how to optimize your FIRE retirement plan, and you can make adjustments to suit your life stage needs.

The most important thing is that after checking the retirement plan, you will feel much more at ease, and you don’t have to worry about the dilemma of having no money to spend after retirement >< ”

Next, shumeng will teach you how to use and look at this retirement plan!

We first use the following, this example to make planning,

Now you are 30 years old, retire at 40 years old, save your pension for 10 years, and spend 120,000 per year. (Afterwards, you can modify it according to your retirement plan.)

By the way, this retirement plan, the plan is that you can live a hundred years to 110 years old, just in case you have doubts about living too long. (When making retirement plans, the direction of thinking, you can prepare for the worst , and minimize the risk as much as possible.)

In the "field" under the annual cost, enter your annual cost of 120,000, and the other figures will be automatically calculated for you. (Here, you can enter a number based on your annual cost.)

Next, let's calculate how much retirement money needs to be prepared.

Retire at the age of 40, spending 120,000 yuan a year, and preparing a pension of 3 million yuan after 10 years.

After 10 years of retirement, you need to prepare a pension of 3 million.

Therefore, starting from the age of 30, you need to prepare 300,000 pensions every year.

Retirement at the age of 40 starts to spend money. In the first year after retirement, the annual cost is 120,000, and the cost in the second year increases according to inflation. The current inflation is conservative at 2%;

But shumeng grabs 1% more to reduce future inflation, which may increase the risk of volatility. (Of course you can also adjust it back to 2% yourself.)

Next, let's think about it, the 300,000 pensions saved every year should be put into investment products with annual compound interest "?%" , so that we can live to 110 years old with peace of mind.

Then use the annual compound interest of 5% to see how old you are, will you have no money to spend?

The answer came out, 96 years old will have no money to spend!

Oh ~ there is no money to live to 96 years old!

If you are still a little worried, you can prepare some more money for yourself,

Try raising the annual compound interest by 0.5% , how old will you be without money?

WOW ～～ The money is 110 years old, and the money can't be used up! !

After a hundred years, this money can be left to your children and grandchildren or those you want to help. With the growth of time and compound interest, the money will only roll more and more, and you have the opportunity to become the first generation of rich people~

STEP 4 OPTIMIZE YOUR FIRE RETIREMENT PLAN

When you have your own FIRE retirement plan, you can set yourself a time to review the plan.

Depending on whether it is quarterly, half-yearly or annually, find a "key core point" to improve each time, and optimize your retirement plan in a disciplined manner.

If, when you look at it, you're spending more than you estimated at the beginning, think about how you can lower your costs or increase your income.

Or you find that there are parts of the cost that you have not considered before, such as accident insurance, life insurance, and any insurance you think you need, you can add it to the annual cost and adjust the amount you need to spend each year.

Or, one day you find that an investment vehicle with an annual compound interest rate higher than 5%, you can also adjust the annual compound interest figure to allow yourself to save to retirement early.

After such a habit of thinking and reviewing the plan every time and every time, gradually you will start to develop the ability to think independently , and you will naturally become better and better when it comes to financial management.

The financial thinking shared by shumeng is just a starting point to help you open up your own financial management concept. As for the success of your retirement plan, it depends entirely on yourself and how hard you work.

In addition, I would like to share with you a great book, FIRE Financial Family , in this book there are many people in different financial situations, sharing their stories of how they achieved FIRE, some with low salary, some with debt, some with zero savings. . . But, They also have the right to achieve financial freedom and enjoy a free life.

They can, I believe you can too, come on! I believe that the future you will be very grateful to the present you for making decisions; because of you, your future life will be different because of this, and you will have more right to choose.

If you also want to cultivate your ability to think independently, maybe you can buy a shumeng FIRE writing subscription , and I will personally lead you through writing step by step, communicate with yourself well, explore yourself well, and move forward steadily towards your FIRE goal💪 💪

I'm so envious~~

shumeng I wish that when I was young, someone could teach me how to think independently, how to communicate with myself and explore myself 🙏🙏

In this way, I don't have to take so many wrong paths and fall all over myself! 😭😭

👇 Click to register 👇

▶️ Further reading

Communicate with yourself through online self-media writing, explore yourself step by step, and practice your FIRE movement

Finally, welcome to take it for free, your FIRE retirement plan , you can follow the four steps shared by shumeng and operate it several times.

After you understand the whole thinking logic, you can make adjustments according to your own retirement conditions. In this way, you can plan your own retirement plan.

I'm glad you saw this. If you have any questions, please leave a message below. You are also invited to join the exclusive Facebook private community . Let's take back the right to choose in life step by step!

Remember, you are the master of your own life

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The original link is linked to Taiwan FIRE Sports GO.

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Like my work? Don't forget to support and clap, let me know that you are with me on the road of creation. Keep this enthusiasm together!

台灣FIRE運動 GO.台灣 FIRE理財族 shumeng，分享透過可行的「FIRE 4 % 法則」、「FIRE 111 法則」、「FIRE 3 帳戶理財法」。以及 shumeng 實踐 FIRE 的心得與體悟，幫助你少走一些彎路，一起提早財務自由 $ 活出你想要的 FIRE 人生。有任何想法，或是想說的話，請寄到 askshumeng@gmail.com ❤️ 對不起，請原諒我，謝謝你，我愛你 ❤️

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