Suppose you want to know how much money would be needed by you future self to maintain the same lifestyle you currently have, but with a higher or lower salary. With this easy tool you can calculate your target cost of living savings in five minutes!
Introduction
It’s no secret that many of us are not saving enough for retirement. In fact, according to a recent study by the Employee Benefit Research Institute, only 61 percent of workers have calculated how much money they will need to have saved in order to retire comfortably.
If you’re one of the majority of people who haven’t calculated your retirement savings goals, it’s time to start. Fortunately, there’s an easy way to figure out how much you need to save: use a target cost of living calculator.
A target cost of living calculator is a tool that allows you to input your current expenses and income, as well as your desired retirement lifestyle, and then tells you how much money you need to save each month in order to reach your goal.
There are a number of different target cost of living calculators available online, but we recommend using the one from SmartAsset.com. To use the calculator, simply enter your zip code, current monthly income, current monthly expenses, and desired monthly income in retirement. The calculator will then show you how much you need to save each month in order reach your target cost of living.
For example, let’s say you currently live in New York City and earn $5,000 per month. Your monthly expenses are $2,500, which leaves you with $2,500 in disposable income each month. If you want to retire comfortably and maintain your current lifestyle, you’ll need an annual income of $60
Calculating your Target Savings using a simple online calculator
There are a number of online calculators that can help you determine your target savings. One popular option is the Simple Living Calculator from Frugalista.
This calculator asks for your current monthly income and expenses, as well as your desired monthly income and expenses. It then calculates the difference between the two to give you your target savings amount.
For example, let’s say you currently earn $3,000 per month and spend $2,500 per month. You want to earn $4,000 per month and spend $3,000 per month. The calculator would tell you that you need to save $1,500 per month to reach your goal.
The beauty of this calculator is that it allows you to input both one-time and recurring expenses. This means that you can get a more accurate picture of your true monthly expenses and adjust your savings accordingly.
Another popular option is the 50/30/20 Budget Calculator from Money Under 30. This calculator breaks down your budget into three categories: essentials (50%), wants (30%), and savings (20%).
It then asks for your monthly income and assigns appropriate amounts to each category based on that income. So, if you earn $3,000 per month, the free calculator would suggest that you budget $1,500 for essentials, $900 for wants, and $600 for savings.
This can be a helpful way to see how much of your income should be going towards each
Finding your spending habits and budgeting
It’s no secret that many people struggle to save money. In fact, a recent study showed that nearly 1 in 3 Americans have no savings at all. And of those who do have savings, nearly 60% said they could not cover a $1,000 emergency.
There are a lot of factors that contribute to why people find it difficult to save money. But one of the most important is understanding your spending habits and budgeting accordingly.
If you’re not sure where to start, there are a few simple steps you can take to get a better handle on your finances.
- First, track your spending for at least one month. This will give you a good idea of where your money is going and where you can cut back.
- Next, create a budget and stick to it. Make sure your budget includes both essential and non-essential expenses so you don’t find yourself short on cash when an unexpected bill comes up.
- Finally, make saving a priority. Automate your savings so you’re automatically transferring a fixed amount of money into your savings account each month. Or, set up a separate account for your savings so you’re not tempted to spend it.
By following these simple steps, you’ll be well on your way to reaching your financial goals.
How to save more money
There are a number of ways to save money, but one of the most effective is to calculate your target cost of living. This will help you set a budget and make informed choices about where to spend your money.
The first step is to calculate your current monthly expenses. This includes all of your bills, groceries, entertainment, and any other regular costs. Once you have this information, you can start to look for areas where you can cut back.
For example, if you are spending $100 on groceries each month, try cutting back to $80. If you can find ways to reduce your monthly expenses by even a small amount, it can add up over time.
Another great way to save money is to create a savings plan. Decide how much you want to save each month and put that amount into a separate account. This will help you stay on track and ensure that you are saving regularly.
If you are looking for ways to save money, calculating your target cost of living is a great place to start. By taking the time to budget and make informed choices about your spending, you can make significant progress towards reaching your financial goals.
Conclusion
The calculator is a great tool to help you figure out how much money you need to save to reach your living wage target. By calculating your expenses with a free calculator, you will save your savings. You can use it anywhere – at home, in the supermarket, at work. It loads quickly on both smartphones and PCs. This calculator is a great way to help you plan for your future and make sure you’re on the right track to reach your financial goals.
