Sunday, November 25, 2007

Retirement Saving Challenge - Five Month Status

Those who joined the Retirement Saving Challenge on July 1, 2007 have almost completed five months. On Friday, November 30, 2007, one should have five months of saving, either at a rate to create 12 times income at age 65, or at a rate of 12% of salary. Here's what one's savings should be at this time:

Five Month Amount by Age To Achieve
Savings Equal To 12 Times Salary
Salary203040 5060*12% of Salary
$20,0002265211,260 3,47016,3661,000

* Mathematically not possible. Shown only for reference

One can choose the lower of the 12 Times Number or the 12% Number. For example, if 20 and making $50,000 per year, one should have saved $565 by November 30, 2007. If more aggressive, one can choose to have saved $2,500.

Since this is an honor system challenge, there is no need to report one's results. I hope everyone is make progress towards their retirement savings target. The next update will be around December 29, 2007. Good luck until then.

Here are the related posts (in date order) for The Retirement Saving Challenge:

Retirement Saving Challenge

Set A Goal

Create Environments and Behaviors

Daily Savings Targets

Preparation - Timeless Personal Finance Recommendations

Finding Money To Save

The Power of Compounding

Get Started

One Month Update - July, 2007

Two Month Update - August, 2007

Three Month Update - September, 2007

Four Month Update - October, 2007

For more on New Beginnings, check back every Sunday for the next segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

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