While i am appreciative of the detailed mathematical approach, Life does not run in an straight road. There are always twists and turns. We are in the middle of an expanding economy, relative job security and income growth on annual basis, All good,
Five years down the Line, lets say this stagnates or reverses.
Three Things life and time always teach everyone,
-
Nothing grows forever. 12% CAGR while realistically possible and probable is a dangerous calculation. More likely it will be 9-10%
-
Expenses are not determinable - Health, Deposits for purchase of Home, other unforseen is difficult to calculate.
3, Stoppage of Income- Either Private Job/Self/ Business- These can dissapear tommorow.
Long Story Short= Savings at an initial stage however high the % on personal basis is an key factor in survivability of these situations.
Subscribe To Our Free Newsletter |