1. Are you earning more than you’re spending in the budget above?
Yes, I am earning more than I'm spending! After carefully managing my budget, I have some money left over at the end of the month.
2. If you have a positive income with money leftover, what can you do with that extra money at the end of the month?
With the extra money, I can contribute to my savings, particularly my emergency fund, invest in my retirement account, or even save for travel experiences. I can also choose to treat myself occasionally or invest in furthering my education and skills related to my career.
3. If you have a negative income and are spending more than you’re making, what steps can you take to correct that?
If I were in that situation, I would start by reviewing my budget to identify unnecessary expenses that can be eliminated. Next, I would look into increasing my income through side jobs or freelance work, and I would prioritize paying down any debts to reduce monthly obligations.
4. How can you move up in your dream job and earn more? What specific steps can you take to grow your income at your dream job?
To move up in my dream job, I plan to take on additional responsibilities and seek mentorship from higher-ups. I can also pursue professional development through online courses or certifications that enhance my skills. Regularly asking for feedback and pursuing leadership opportunities within the organization can also help me grow my value and earn more.
5. What is a NON-INCOME based reason that you chose this job? Why is this non-income based reason to do this job important to you?
I chose this job because it aligns with my passion for creativity and collaboration. The satisfaction of contributing to projects that make a difference, coupled with a supportive team environment, is incredibly fulfilling. Building strong relationships with colleagues and seeing my work positively impacting others adds immense value beyond just my paycheck.
6. What are the biggest employee benefits of doing this dream job? Which is the most important to you and why?
Some of the biggest employee benefits include flexible work hours, health and dental insurance, and opportunities for professional development. The most important benefit to me is flexible work hours because it allows for a better work-life balance, giving me time for personal projects and experiences that enhance my quality of life.
7. There are three possible sources of additional income: investing, entrepreneurship, and side jobs. What is one alternative income source you may use in the future? What’s an additional way you can earn money?
In the future, I plan to explore investing in real estate as an alternative income source. Additionally, I could leverage my skills by offering freelance services or consulting in my field. Both of these methods would allow me to create additional streams of income while pursuing what I love.
8. How old will you be when you retire, and what money will you live off of after retirement?
I aim to retire at age 65. Post-retirement, I plan to live off a combination of my 401(k), personal savings, and investment income.
9. How much money do you estimate you need in retirement funds?
I estimate needing around $1 million saved for retirement to maintain a comfortable lifestyle, accounting for potential healthcare costs and inflation.
10. Let’s say the average life expectancy is 80 years old. 80 years minus your answer to #6a above = _____ how many years you’ll need to live off your retirement money.
If I retire at 65, I’ll need my retirement funds to support me for 15 years.
11. Take your total from #7 above and multiply it by $88,800, your total annual expenses = ______ how much money you need at a minimum in your retirement accounts.
$88,800 x 15 years = $1,332,000. This is the minimum amount I’ll need in my retirement accounts.
12. Is your answer to #8 above more or less than what you listed in 6b?
The estimated amount needed for retirement ($1,332,000) is significantly more than my initial estimate of $1 million. This essentially means I need to adjust my retirement plan to increase my savings rate and investment contributions to meet this revised target. I could also consider working a few additional years or finding higher returns on investments to help bridge the gap.