From Mr. Money Mustache …
I have a surprise for you. It turns out that your time to reach retirement depends on only one factor: Your savings rate, as a percentage of your take-home pay.
If you want to break it down just a bit further, your savings rate is determined entirely by these two things:
- How much you take home each year
- How much you can live on
While the numbers themselves are quite intuitive and easy to figure out, the relationship between these two numbers is a bit surprising.