Cover, Estimating Your Target Income

005 [SWS] Estimating Your Target Income | K1222A

Are you working too hard for too little? It's a common problem that high income professionals discover too late they don’t have enough for retirement.

How to Know How Much To Earn To Reach Every Goal and Desire

If you want more from your retirement and the confidence of knowing you're earning enough, then pay close attention. Do this before you spend your adult life working for someone else’s wealth!

Knowing your target income reaches your financial goals helps you focus on the right opportunities. That means, “How much is your minimum earnings to set aside enough in today's dollars to reach retirement goals?

Critical Questions About Your Target Income Necessary to Achieve It

What about financial needs beyond retirement? Setting aside income for children's college, necessary home repairs, or even vacations. Do you need to earn $100,000, even $200,000, or more?

When you know how much earning is necessary you can choose one occupation instead of another. That's what today's podcast is about, knowing your right target income.

Common income mistakes you must avoid to earn enough. Making any of these mistakes eats valuable earnings no matter how much you earn.

  • Working too hard for too little,
  • An opportunity that doesn't pay what you need,
  • Staying too long in a position that won't pay out,
  • Burning yourself out beyond your need,
  • Assuming you are earning enough,
  • Not taking taxes into account,
  • Failure to set aside reserve funds now,
  • Ignoring charitable opportunities,
  • A single stream of income,
  • Doubting your ability to earn,
  • Not turning income into net worth,
  • Spending more than you earn,
  • Losing money to debt and liability,
  • Underestimating future needs,

Knowing how to estimate your necessary earnings you can be ready for retirement in today's dollars. This is a very important concept.

What Do You Need to Earn to Save A Million Dollars?

If you need $1,000,000.00 in 30 years, then you can calculate how much to save enough month starting today. It's only $935.55 a month if you can earn a 6% return if were wondering.

Most employees have half the buying power after five years in any job. Knowing your target income helps you move along rather than having buying power eaten by inflation.

This isn't about being greedy. Instead by establishing an income target you give yourself a goal and can make decisions that help you achieve it.

Contact my offices if you have an immediate need around calculating your target income to reach goals, or financial security. And ask questions about how to transform that income into net worth.