If you’re working your way to Financial Independence, and in case you haven’t done so already, I wanted to provide you with a way to calculate at what age you are currently on pace to hit your FIRE number. In full disclosure, the basis of this spreadsheet came from J. Money over at Budgets are Sexy so please head over there and show him some love. It’s likely you’ve heard of him before, but if not, you’re in for an extreme wealth of information. My contribution to the spreadsheet was the addition of the Projected Monthly Retirement Budget box, allowing you to personalize your budget and individualize each monthly expense (as opposed to entering an overall total,) and I also extended the age of reaching FIRE from 55 to 60.
I highlighted the boxes where you need to input your own numbers. Also, please note that the box showing at what age you will hit FIRE (cell B14) is only formulated for ages 30-55. If the box reads “0” you will have to look at the column to see if your age is projected between 56-60. If you’re hoping to retire early and your monthly retirement budget requires a larger sum than is calculated to the age of 60, you are going to need to seriously consider what changes you can implement to increase your savings and yearly investments, decrease your monthly retirement budget, or better yet, BOTH.
My current projections, assuming a 4% withdrawal rate, modest 5% return and yearly investments of $30,000 (this is presuming our debt payments convert over to investing once we reach debt freedom – and will presumably increase over the next several years,) is that we will hit our FIRE date when I turn 44 (I’m currently 29.) This will also be dependent on not having a mortgage, car payment, or any other consumer debt.
Additionally, and this is my FAVORITE part…this doesn’t take into consideration any part-time nursing/other work I may choose to take on, which theoretically will provide for the potential to, at least partially, retire even earlier. Remember: The Power of 300 says that if I work enough to earn even $1,000 a month (~3 or 4 shifts,) that decreases our required nest egg by $300,000! That alone has the power to knock off nearly FIVE YEARS of full-time work!
You can maximize the Excel document with the icon in the lower right corner. Download it, play with your numbers, update it as you progress through your journey, see where you can tweak things in your favor, helping you reach FIRE sooner than you ever thought possible!
So at what age are you currently on pace to retire? Are you happy with that number? If not, what are you gonna do about it? Let me know in the comments below!
Good day my friends!
– Nurse on Fire