Read? Retirement Income for Life??? (9)
Knowing when enough is enough to get by?
Make an educated estimation of how much is enough based on our past family annual expenses.
If you don't have the habit of tracking your family annual expenses, make an effort to start now.
See what Uncle8888 did for himself...
Those tail-end high expenses on the right of the chart are unlikely to happen again as Uncle8888 won't be paying for his grown-up children for their expensive overseas vacation. Right?
How much is enough?
Uncle8888's Magic Formula
Expected Monthly Expense =
(Highest ever monthly expense + 4 x Average monthly expense + Lowest ever monthly expense) / 6
= $X,XXX
Annual Monthly Expense = 12 x $X,XXX = $YY,YYY
Enough = 25 x $YY, YYY = $Z,000,000
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