How Much Will You Earn From Your Employment Incomes In A Lifetime?

Have you ever calculate how much you will earn from your employment income in a life time? Approximately, an employed person can get 400 times of income in a lifetime. It sounds little right? Let’s put it into numbers.

Let say you work from young, after graduated from schools, about 20 years old and stop working after you have reached the retirement age, let’s say about 55 years old. Number of incomes from your employments is equals to years of working times twelve months per year.

Number of incomes
= (55 – 20) years x 12 months
= 35 x 12
=  420

You will have 420 times of employment incomes if you work for 35 years!

In this case, how much you can earn in this 35 years? Let’s say your monthly income is $3,000 per month. In 35 years, you will get total of 420 x $3,000 = $1,260,000. It’s more than a million! Most people can easily have more than a million in lifetime!

But if you have deducted all the expenses that you will spend for your life, how much money you will left from the $1,260,000?

Let’s say you able to save 20% from your employment income without doing any investment. In 35 years, you will have 420 x $3000 x 20% = $252,000 from saving.

Is $252,000 good enough for your retirement when you are old?

Let’s say you invest the money in fixed deposits and get an annual return of 3%, every month you will get about $252,000 x 3% / 12 = $630. Remember, to save 20% from income is a quite large amount for most people.

Compare $630 with your monthly incomes, $3,000? Do you thing $630 of monthly income is enough for you when are old and retired? Well, personally I don’t think so.

So be cherish what you are having now because you only have 420 times of employment incomes. So  save more, invest your money wisely so that your money can grow more in later life. Cheers!