I'll have to work till 70. No, no, I'll have to work till 60 to get retired. Of course. Of course. What you sir? You'll have to help me help you retire early. I don't know 45. But I'll have to buy I'll have to buy a house. I'll have to buy a car. I have I have to go on a vacation as well. Done. So, I'll make sure you can do all of this and you can retire at 45. Does that make sense? That means you'll never work after 40 or 45 ever in your life. So, Igbar, can you run me by this sheet? What What's over here? So this is my bank balance right now. The cash in bank three lakh rupees. Yes, I have three lakhs. Three lakhs. And this you will invest. This I will invest. Yes, I will invest. Pura pura. Yes. Okay. Then you have monthly expense which is 65,000 and you are earning 67,000 a month. Damn, you spend way too much and basically inflation is 7%. What is this 12% nonsense? 12% sir. 12%. Do not assume 12%. We'll reduce this to 10%. An annual salary increment 20%. What world are you living in? 8% later. So basically now what I see over here this is this is your age going from 29 all the way to 85. Okay fine. Then we have invested corpus which is three lakhs. Correct. This is increasing every year. Here's what we want. We want this corpus should be so big that when you retire even though you're not working you can withdraw money from here and this money never ends. Correct. What age I'll retire? So according to according to your sheet at 60 when you retire the money finishes at 71. So to survive beyond 70 you will be no money. So basically by the end of this conversation these 20 years that you have to work from age 40 to 60 we want to completely eliminate. So after 40 you'll never work again. Correct? So I'll mark this in orange and this will be gone. Sir I know what you'll do. So what I know so what you'll do is you'll increase my salary from 8% to 15%. I will increase why increase the salary sir. We have to reduce your working years. Why are you changing salary? Come here. I I have to tell you something very interesting. Come. Yes. So what you've done over here is you're expecting 15%. 20%. But actually actually look at this. There is the deote report which actually says the average is 8%. And that's why we'll keep the salary increment at 8%. Now moving on to the returns. Let's keep it at 10%. My portfolio is giving 20% return. 10% actual actual portfolio. Yeah, we'll play a game. 20. Okay. The game will be played by you by me and Aishek. You have to put your score and we'll play it right now. It's only going to take 30 seconds. These are the returns for 3 years. Don't use a calculator. The first year is 24%. 14.9% second year, 12% the third year. What's the average? What's the average? Uh 15%. Okay. So for the next few years, how much can you expect Nifty to give? Around 15%. Roughly. Roughly, right? This is called a bias, recency bias. You look at the last few years and you assume that the same thing will continue forever. So now if you look back, these were actual numbers I rounded off. If you go from year 2000 to 2024, you average it, it is 11.7%. Now I'll tell you the third thing before we reduce your expenses and bring them down to 30,000. It is actually where is it? It's you. Oh, my portfolio is doing well today. I'll buy my car now. Yes, you're not wrong, Bess. Yeah, I'm not. But also look at this right. It's not just you. It's you too. Sebi said in the first one year 50% of mutual funds are actually redeemed which means people sell it. Sir, tell me one thing. If I want to buy a car, huh? Then also I'll not withdraw. This is my life savings. No, I'll have to withdraw. Correct. And I think this is where personal finance, all this content online gets wrong. Everyone's basically telling you that you should not go to parties, go for vacations, buy the iPhone, buy all these things, including us in all of this content we've made. But there is one caveat you have probably not noticed because you have not planned it well. That's why you're not able to do it. So what you actually have to do is plan your investments well. And that can be done with the help of SWP, a systematic withdrawal plan. It's basically the opposite of an SIP which is a systematic investment plan. Everyone knows it how in an SIP you invest every month. Most people do a month. In an S SWP you withdraw every day, month and because you're withdrawing it at a certain rate, the original corpus keeps growing. So you are working till 60. Now this has to reduce this orange portion has to become zero. So what I will do is I will keep the salary increment at 20% and investment return 12%. Like you had done earlier. Now let's see what happens when we delete this income from after 40 years. Even after 20% increment this money will not last beyond 69 years of age. Yeah. Now let's understand why. First look at your expenses. These fixed expenses look fine, but you are spending 25,000 every month on party and trips plus 15,000 more on phone EMI. No. How do you expect your money to last forever if you keep spending on all this stuff? Instead, you should distribute these big expenses over a period of time. Sir, but then how will I buy the stuff that I want? See, even after cutting these out, you are still left with 5,000 and you can spend it however you want. So now you are now retired at age 40. And age 41 onwards, how much are you earning? Zero. Now I want you to imagine what will happen at age 40 onwards. You're not working at all. Go relax. Relax on the sofa. Age 41. Never working. Go lie down quickly and look up into the sky because now you are financially free. Money will last for a long time. One day goes, no work. 6 months go, one year goes, 20 years, 40 years go by and you're absolutely never working again. This is not the definition of being financially free. I know you don't want to be compulsive in going to the office and have to work. You still want to work but on stuff you enjoy. Right. Right. How much will you earn? At least 40,000 to 42,000 you'll be able to earn every month. Right. Yeah. Let's also consider you will get a 6% increase in this income every year. Yeah. Okay. But at 60 I want to stop this freelance work also. Correct. Now let's see. Will the corpus ever end? It's increasing forever. This will actually never stop increasing and I'll keep on withdrawing. You'll keep withdrawing from the corpus. So it's 6.84 crores at age 60 and even at 85 it's continuing to grow. So the realization here is your retirement is always in your hand. It just depends on what you want today. So if you increase the expenses over here, your retirement may never come. So it's fine to buy that car. It's fine to go on that holiday. It's fine to buy anything that you like. But it should make sense if it if your money finishes in the future, then maybe you should wait. And remember this is very worst case, right? I don't think your salary increment will be 8%. With the way things are going, I think at certain periods of time when you get a spike, there'll be a sudden jump. But at that point, if you decide to spend that money, then there is no point of that sudden jump. This sheet does not plan your finances. It tells you that even if you save 5,000, 8,000 or 12,000 rupees today, it's going to affect the Abishek of 60 years old. Sir, I have one last question. Yeah. What is the cost of freedom? It's an exam of you know in school when you had an exam coming up you can either be the kid who went home every day and did a revision and a weekly revision. So he had to prepare very little before the exam. But if you were like some people I was I was always prepared. Some people one night before you would study 2 days before the exam. Right? So now you have to decide. Do you want to be the guy who invests a little bit now so that later in life there is less pressure and therefore there is less stress and that's how you define freedom or are you the guy who says I want to enjoy now I'm going to go play I'm not going to study and I'm going to study one day before the exam in other words I will work really hard in my 40s and 50s and 60s and I'll deprive myself of the stuff I may need in the future because I want to enjoy my life today. You don't have to take these extreme decisions. It can be somewhere in the middle. What do you want to be? The good student.