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Stop Saving Money At This Exact Age (The Maths Proves It)

Josh K. Fay

154,437 views

Retirement Tracking app - https://josh-k-fay.kit.com/2bf1310071
The Savings Thermostat app - https://josh-k-fay.kit.com/904a49a9e4
Work with me - https://calendly.com/josh-joshkfay/60min
Turn your Income into Wealth with Weekly Insights - https://josh-k-fay.kit.com/email
Contact me - josh@joshkfay.com

This video explores effective methods for saving for retirement, emphasizing the significant impact of compound interest explained. We also discuss practical financial planning strategies, using tools like a "Savings Thermostat" to track your progress. Discover how consistent investing, even small amounts, can lead to substantial long-term growth and help you achieve your retirement goals faster.

20 Comments

@josh_k_fay Creator 6 months ago Pinned

@freshfalcon3996 5 months ago

There are actually two key investment milestones. The first is when your investments start earning more than your annual savings contributions. The second is when they start earning more than your annual income. That’s when work becomes completely optional.

@Tensquaremetreworkshop 6 months ago

I look at it another way- a graph with two lines. One is what you have saved, which rises. The other is what you need to last the rest of your life, which falls. When they cross, you can retire. Add a safety margin, then resign. Worked for me. Retired at 52, twenty eight years ago. Two more years, and I wll have been retired as long as I worked.

@fennugreek-gs5zb 5 months ago

I did a similar calculation a few years ago and found we were past the "coast number". Since then we've had amazing family vacations both internationally and in country. Our family has grown closer because of this, and now my children are off to college doing their own thing. My wife and I are so happy that we made that move, since we will never have them at that age again!

@jakecoventry9004 5 months ago

My parents have loads in their pension. They'll never come close to spending it all. So, this is really useful.

@AnalogdotMoney 6 months ago

The maths is clear but most people can't make the psychological leap. After decades of "save more" being the only lever they know, trusting compound growth to do the heavy lifting feels almost reckless. The number on paper says you're done accumulating — but your brain hasn't got the memo yet. That gap between the math and the mindset is where most people stall.

@MaddyUniversity 6 months ago

Time is the ultimate currency

@CSh4w 5 months ago

Heard it said once that ‘most people are wealthier the day they die than they were the day they retired’

Makes sense when you factor in property appreciation (especially in Australia where I am) and declining spending patterns as we age

@brianbrewis8791 6 months ago

It’s children that need to be taught this at school,
most of us learn this too late…

@sandippatel1969 6 months ago

I'm 56 and totally burnt out at work. Checking right now.....

@jit_cool_grewal 5 months ago

This is video is hugely motivating. I need to get this coast number and enjoy my life!!

@markluni 6 months ago

So I've been saving aggressively for like 12 years now, got maybe $380k invested, and I'm still stressing about every purchase like I'm broke. At this point the growth is probably doing more work than my contributions but I have no idea how to know when enough is actually enough. Nobody prepares you for the mental shift from saving everything to actually spending and enjoying it. It just feels wrong to slow down.

@conrads_corner 1 month ago

Hit this point this year at 38. Will still go hard until 50 for fun and work until 65.

@TravisFisher 5 months ago

Just did the math. My investments make 5.96X what we invest now. We've dropped it down to just enough to get the employer match. No sense giving up free money.....

@kellyvinson6605 5 months ago

If you have a company match your money doubles instanly. Beat that return.

@markwallis6881 6 months ago

The guy working for one more year to save an additional £30,000, also avoids an entire year of pension drawdown, so the actual impact on his pension fund from ‘one more year’ syndrome would be more like £70,000 - £80,000. At a future drawdown rate of 4% this additional year of work would enhance his annual drawdown by £2,800 to £3,200. That’s why it’s hard to stop.

@chewiewins 6 months ago

Hence the book The Art of Spending Money, I highly recommend

@ChitChatBFF 6 months ago

As a frugal extraordinaire, I love this

@mynamesearl9141 6 months ago

That was very helpful, been thinking this for last couple of years. Time is the most important currency now, need to relax and enjoy the spoils of 37 years of hard work and disciplined saving and investing. Thanks

@arktseytlin 5 months ago

In USA, it still make sense to save into 401k to get the employer's match (free money). Even if you have to withdraw earlier than allowed and pay 10% extra tax you're still ahead with the match.