I love looking really far down the road. I love projecting account balances in the future, and I love the idea of compounding interest.
I also like making money today, I like having the ability to spend money on the things I want, and I have no problem paying a little extra for things if I can afford it. I hate stress, so if a few dollars saves me from worrying, it’s money well spent.
So I thought about, in order to retire comfortably at age 66, I’d need $4 million. Why that much? Because it’s such a huge number, that even with inflation and everything, there’s no way I could ever need more than that. It’s very possible I won’t need that much. But I know that in 40 years, if I have $4 million in savings, there’s no way I won’t have enough money for everything I’ll want.
So working backwards, with an 8% rate of return, I’d need $250,000 in savings by age 30 to hit that mark. If I earn 8% every year, I’d have $367,000 at age 35, $539,000 at age 40, $1.16 million at age 50, $2.5 million at age 60, and just about $4 million at age 66. The “normal” retirement age will probably increase in the next 40 years, so I’ll still be retiring early at age 66.
$250,000 is not an easy target to hit by 30, but the benefits are enormous.
There would be no need to save a dime the rest of your life. Once retirement is fully funded, there’s no need to save extra. As long as you earn as much as you spend, you can spend that money however you want. No more saving 20% for retirement, you can focus on education, the house, travel, or whatever else you’d like.
Instead of saving for huge goals, savings can go toward family vacations, education, and some of life’s pleasures. $250,000 is my goal for 30, and then that extra 20% (or more ideally, 60%) of income that goes to savings can go toward a house or kids.
Readers, what do you think? Is $250,000 a realistic goal? Are the benefits enormous enough to make it worth it?
Looking for financing to get the home you’ve always wanted? You can explore a lot of financing options out there. One of the most popular ways to finance your home is to apply for a mortgage. Here are some essential tips to help you get your loan application approved!
Don’t move the money
If you’ve got plans to take out a loan, then make sure you don’t move your money around. Don’t take it out of your bank accounts. Leave it there for 6 months. Too much movement can make it seem like you’re short on cash and that could make banks or lending companies doubt your capability to pay off the loan. Also, remember not to take out any personal loans 2 to 3 months before you’re set to apply for a major one. That could reduce your chances of getting the second loan approved.
Know your costs
Knowing exactly how much you need to spend to buy the property you’ve been eyeing matters. It helps you plan your budget as well as rearrange your funds. One way to figure the amount then is to use tools like stamp calculators for mortgage on sites like PropertyGuru Singapore. With these tools, it’s easy to determine your costs and as a result, properly allocate your funds.
When banks or lending companies know exactly what you’re spending their money on, they tend to provide the loan at a lower interest rate. The more they know, the less risk involved for them, or at least that’s how they see it. So make sure you provide a detailed explanation in your loan application.
Match it to the right loan
One reason some loans don’t get approved is because people are applying for the wrong one. For instance, if you want to borrow funds to finance your education, then don’t take out a personal loan but the education loan package instead. Did your home suffer devastating damage from the storm? Don’t take out a personal loan when there’s a perfectly good renovation loan package you can apply for instead.
Double-check for errors
Sometimes, the reason your loan wasn’t approved is because you filled out the information wrong, or provided the wrong information. A wrongly spelled name can derail the process and make you start the application process over. So review everything before you submit your application. Check the accuracy of the dates, the spelling of your name or where you live, your birthday, along with the rest of your personal information. These are pretty basic but you’d be surprised at how many people make mistakes when it comes to the basics.
Shop and compare
There are plenty of housing mortgages you can choose from. Don’t go for the first affordable rate you find. Look around until you’ve got a list of potential mortgage packages. Compare the features and interest rates. Also factor in the payment flexibility of the loan. Do this until you find the best one at a price range that’s reasonable for you and your wallet.
Know what you’re getting into
Before you sign up, know or ask about the penalties for late payment. While you want to make sure your payments are always on time, you never know what could happen in the future. By knowing the consequences of a late or delayed payment, you’ll know what is at stake, which should push you to do your hardest to provide on-time payments.
Read the fine print
Aside from knowing the penalties, look over every inch of the document so you know what rights and services you’re entitled to. That way, if the company should break or violate those rights, you’ll know, allowing you to take immediate corrective action.
Be aware of the conditions
Money Sense provides a detailed table on what housing loan conditions go how much down payment. Use it as a handy guide to determine which bracket your loan should fall under.
Don’t forget to check all the fees involved
Some banks might charge more than others. Ask about those charges so you know what services you’re paying for. Also, if you think the bank charges too many fees, you might want to consider switching to another bank for better-cost savings.
Ask a professional
If there’s anything you don’t understand, consult a financial professional for help. You could also hire a real estate lawyer and agent to help you understand what steps to take as well as legal details that need to be seen to. With help, applying for a home can seem less intimidating for you.
Applying for financing is to first step to getting the home you’ve always wanted. So follow these tips to improve the chances of your application earning the approval it needs.
At times, many people will find that their supply of cash is on the low side. In order to deal with this issue, there are many profitable not to mention fun ways available online to help one improve their financial outlook.
The internet really utilizes the opinions of users over many topics. For instance, users can listen to music and then provide a review. A particularly popular site is slicethepie which lets users sign up to review music. Since their inception, the site has paid out more than $1.3 million to reviewers.
Many online casino sites offer incentives and bonuses to their patrons. These can make it possible to win some money playing your favorite online casino games without spending your own money, keep an eye for reviews like Casinoonline.co.nz reviews JackpotCity online casino to stay on top of everything. If you prefer using your mobile device, mobile casino sites are also available.
Clean out Your Closets
You more than likely have valuable assets within your home that you no longer use. Flipping these items online can help earn some additional cash while cleaning your home up in the process. Some sites require you to ship items yourself or have another third party do that for you. The auction site ebay is the most popular to use.
Websites can be hot commodities than can be coveted by purchasers. Given this fact, purchasing them with the goal to sell them later at a profit can help provide some easy income. Their value can be increased by making improvements although this is typically optional when flipping a website.
Select one of these fun ways and you will soon be on the road to financial recovery!