The ‘Greene Formula’: How much should I save at my age to secure my retirement?

These days there are a large number of stories on the internet of financial independence of people between 30 and 40 years old who, somehow, attached to economic techniques and formulas, manage to anticipate their retirement. Although this seems impossible, the reality is that it can be achieved as long as you prepare your savings in advance.

To do this, Kimmie Greene has developed the, which determines the money you must have saved at 30, 40 or 50 years to be able to guarantee your adulthood. This method is based on the function of the person’s age and the annual gross salary that person receives.

“If you start saving at age 20 with the goal of retiring at 40, you should aim to save and invest at least 50% of each payment to reach your goal: that at age 30 you have saved 100% of your salary You should also put at least a portion of any bonuses or stock options into your growing retirement fund,” the analyst explains in an article published on CNBC Make It.

Greene states that every five years of work a person must save a gross annual salary: at 35 he must have double, at 40 triple, at 45 four times, at 50 five times, at 55 six times, at sevenfold at 60 and at 65, when retirement age approaches, have eight times the annual salary saved. The analyst, however, explains that the deadlines may not be strictly adhered to, but that an income entry, inheritance type, salary increase, can compensate for bad years of savings.

Early retirement

To make the formula effective, Greene recommends that early retirement be the reference point from the beginning of the professional career and that based on it there be an orientation of what is intended to earn and lifestyle.

“It’s hard to say: yes, I want to do this at 40, because you’re going to need a job that pays a salary that not only covers your expenses, but also leaves you with extra money to save. While there are always exceptions to the rule, Taking on such an aggressive goal means filtering all other decisions through that goal: Do you want to live in an expensive city like San Francisco or a cheaper one like St. Louis?