Thursday, August 18, 2016

How far are you from Financial Independence?

I keep asking myself  this question all the time. I came to a realization that, if it were only me, I would be able to answer that question much more comfortably.

However, I feel responsible regarding some members of my family and I think I should be prepared to help them if I have to. I have made many calculations and projections and came up with three scenarios.

Scenario Number 1: Retire in March 2018 at the age of 51 with some savings and a rental home. This can provide a very modest living with no possibility of travel outside of Turkey. With this scenario, I will not be able to help others if family emergencies come up as much as I would like. So, I really do not like this one and 51 is too soon to retire anyway. If this scenario becomes reality, I will probably have to look for some consultancy or training work like I used to have.

Scenario Number 2: Retire in March 2020 at the age of 53 with a good deal of savings and a rental home. This one will allow me to travel and help others if there is ever a need for that. So, this scenario is a good one.

Scenario Number 3: Retire in March 2023 at the age of 56. Now that is a comfortable living with money to spend, to share and even save. 56 is a good age to retire and I will not have to worry about whether I should get a part time job or not.

So, obviously I target the third option. However, it is not completely dependent on me. As much as I like my job and have no intention to leave it, I am not too sure if my job will be around for me till 2023. My boss wants to relocate to the US and he is looking to sell his business. I am sure the new owners will need me for a while but then what?

So, I am just hoping that I will be able to pull in the same level of salary till 2023 at this job or another so that, I can comfortably retire and feel safe.

Wonder what other people are making their estimations.

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