Last week while on vacation, I read Brian Tracy’s Flight Plan*, a short little book about success. On page 14 of the book, Brian has this to say about financial independence:
Here’s a simple exercise: Determine how much it would cost you per month to live comfortably even if you had no income at all. Include all your costs of housing, food, travel, medical expenses, vacations, and entertainment. Mulitply that number by 12 (the number of months in a year), and then mulitply that result by 20 (the number of years you will probably live after you retire). The total represents your retirement goal. This is how much you will have to accumulate to be financially independent.
He left out two very important details in his exercise. Do you know what they are?
I know what it is but I can’t say it here because it would defeat the purpose of the quiz. The first person to answer the question correctly (I’m the judge of what is or is not the correct answer) will win a copy of Flight Plan*. Just remember this little contest is only open to U.S. residents.
[Now begin playing “Zeopardy” music…]