It’s not about what you make, it’s about the difference between what you make and what you spend. If you know those two numbers you can calculate your savings rates, and if you know it you can improve upon it.
Liz joins this week’s podcast as we talk about:
– The number one most important metric for achieving early retirement
– How to calculate your savings rate
– What our savings rates are and have been
– How your savings rate equates to the number of years you need to work
– How to increase your savings rate
Show References:
- Inside Out Money episode #055 – Our formula for how much to keep in your emergency fund
- friends on FIRE podcast #190 – The financial mechanics of early retirement
- Inside Out Money episode #022 – How much do you need to retire? Flaws in the 4% rule
- Mr Money Mustache – The shockingly simple math behind early retirement
- Inside Out Money episode #036. From canceling Netflix to selling our homes – What we’d do in a recession
- Inside Out Money episode #045. The one metric you likely don’t track: Lifetime gross savings rate
- Mindy on money podcast