Set a goal. See your timeline. Watch your savings grow with compound interest. Includes monthly breakdown, key milestones, and 3 different return scenarios.
On a $50K salary with 20% savings rate ($10K/yr invested at 7% return), it takes 8 years to reach $100K. On a $100K salary saving 20% ($20K/yr at 7%), it takes 4-5 years. The exact time depends on income, savings rate, and investment returns.
The 4% rule: multiply desired annual retirement income by 25 to get your target nest egg. If you want $50K/yr in retirement, you need $1.25M. To save $1.25M in 30 years, you need to invest ~$1,500/mo at 7% return. Start with whatever you can and increase 1% per year.
A realistic savings rate for most people is 10-20% of gross income. 15% is the financial independence sweet spot. The 50/30/20 rule allocates 50% to needs, 30% to wants, 20% to savings. People who retire early typically save 50-70% of income (called 'saving rate').