Posts tagged with "expenses" - page 3


  • Funding Child's Education Expenses

    In the past, I wrote about how to fund children's education expenses, but some of my readers felt that there should be a calculator to figure out education expenses. So naturally, I am obliged to fill the gap with this calculator. I would strongly urge you to read the previous post before using this calculator to understand the basics first. Lets get some shortcomings of the calculator out of the way before using it.

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  • Record Your Expenses

    In my previous posts, you have seen my monthly and annual budgets. Now it is time I explained how I actually track and record my expenses, so I know how I am performing compared to the budgeted numbers.

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  • My Annual Expenses Explained

    In my last post, I went over my monthly expenses. In this post I will go over my annual expenses so you too can plan your annual expenses along those lines. For the year 2018, I budgeted an annual expense of Rs. 3,60,000. That comes out to Rs. 30,000 per month. Annual expenses are those expenses that occur less frequently than a year. So things like property tax, buying a car, painting your house etc will come under annual expenses. My annual expenses planning is shown below.

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  • My Monthly Expenses Explained

    In one of my previous posts, I briefly mentioned that I planned my monthly expenses to be around Rs. 50,000 per month. In this post, I want to explain a bit more on how I arrived at those numbers. May be it will help you figure out your own expenses in your retirement.

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  • Year In Review - 2018 Expenses

    Continuing the "year in review" series, this time lets go over my expenses last year. Did they go according to plan? Did I over estimate or under estimate? I wrote a couple of posts explaining my monthly and yearly expenses. You can check those out for more details. But for this post, I will just go over them briefly and how they panned out over the course of last year.

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  • Should You Retire Early?

    Early retirement is not for every one, and it is not like everyone need to retire early. Don’t blindly follow the bandwagon and join the F.I.R.E (Financial Independence Retire Early) cult. You subconsciously know who you are, and whether early retirement makes sense for you. Here are some reasons why you may not want to retire early.

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  • How Long Will My Money Last?

    How long will your money last? The oft given cliched answer is -- it depends. It is true if you want someone to answer for you. But if you put some effort, you will be able to answer the question yourself. The only problem is that you should be able to make some good estimates of your expenses, inflation and investment return long into the future.

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  • How Much Do You Need To Retire?

    I have touched upon this point briefly in step 5 of How to Retire Early in 5 Steps, but I thought I should expand a bit on that. Most people suggest the 4% rule, which basically states that if your expenses can be met by withdrawing 4% of your corpus, then that should be the corpus size. For example, if you need Rs. 50,000 per month to meet all your expenses comfortably in your retirement, then your corpus needs to be Rs. 50,000 * 12 / 4% = Rs. 1.5 crores. But does it really work?

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  • How Soon Can You Retire?

    Like I mentioned in the previous post, there are really just two variables that you can control, which determine how soon you can retire. They are your expenses and savings. Remember step 4 of How to Retire Early in 5 Steps? Plan a Simple Retired Life. The lesser the expenses today, the less it will be in future after adjusting for inflation. If you like a rich lifestyle today, then as the years go by, not only will inflation cause the expenses to go up, but you will want higher and better lifestyle which adds up. Your savings will not be able to handle the burden of your expenses. The less your expenses, and more your savings, the earlier you can retire. But how soon? That is the question that I want to answer in this post.

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  • Would You Rather Have Freedom or Stuff?

    One of the most important trait that people who want to retire early need to practise is minimalism. If you keep buying more stuff, you will take longer to retire. I made this mistake early in my life, but I was not too late to correct course. Especially because some of the things come with a burden of lifetime maintenance; for example owning a car. The constant repairs, upkeep and insurance keep adding to your expenses. Not just vehicles but every single thing that you own, ends up owning you. So if you would rather have freedom, you have to give up stuff. This is in continuation of step 2 of How to Retire Early in 5 Steps — Rid Yourself of Debt and Save Aggressively.

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