Wednesday, January 09, 2008

Monthly Savings Needed for My Early Retirement Goal

I used this nifty savings calculator at one of my favorite financial websites, Bankrate to determine what my monthly savings needs to be in order to hit my $25,000 early retirement goal for 2008.

The calculator is great since it allows you to play with the interest rate.

I inputted in the amount I have today, my goal of $25,000, my time horizon, and tried out different interest rates. The calculator tells you how much you need to put in to be on track. I found that even with a 9% interest rate, I still need to accumulate $1,212 a month! Yikes, that is a lot of money!

So far I have added $425 to the account, but most of that is spill over from December. I need to be really serious in order to make this a success!


Chief Family Officer said...

That is an ambitious goal! Maybe you could find a way to bring in some more income (selling stuff on eBay, selling a craft, etc.) to help you meet your goal? Good luck!

ChampDog said...

Good luck to you! In terms of saving technique, I use to "Pay Myself First" method and so far it works help. Maybe it works for you too.

calgirlfinance said...

CFO, Thanks for stopping by. I am definitely looking for more ways to bring in income! Right now I'm working on survey income, selling stuff on eBay, and mystery shopping!

Champdog, As usual, thanks for the encouragement! I do pay myself first for many things, but part of the challenge of this is finding additional income.