Unless you are one of the fortunate few who have found that your job and your passion are the same thing, you are most likely working at a job where escape is a constant wish.

For many, that exit will only come when they are around 65 years old and ready to fully retire. For others, it might even extend further than that age threshold. It’s a sad fact but finally retiring can sometimes mean that the worker just died and could not clock in anymore.

What it takes

For some, it might mean having a million dollars in squirreled away somewhere so that they can live worry free. Surely these are enough nuts to last a lifetime, right? After all, how many people out there can really call themselves millionaires? To most people, this is just some mythical number.

More nuts

Looking deeper though, I get the feeling that one million dollars will not be enough for many people. It is very possible that that nest egg will vanish completely before the end.

The average cost of nursing homes in the Los Angeles area is about 173 dollars a day. If we divide the million dollars by that number, then the “millionaire” will only be able to afford long term care for about 16 years. After that, they better hope that their kids or grandkids love them.

Wealth is not measured in nuts

Kiyosaki, the author of Rich Dad, Poor Dad has suggested that the true measure of wealth is the unit of days. The number of days going forward wherein one does not have to work is a more realistic measure of wealth. If you have one million dollars and your cash flow shows that your monthly expenses are in excess of 8300 dollars, then you will most likely be broke in ten years. Then you have to generate income again and join the rat race all over.

Other rodents

There are also other things that can gnaw at your precious hoard. The biggest culprit is inflation. This is a very real pest when it comes to trying to leave the rat race forever. If you think that you have hoarded enough, you must first calculate exactly what quality of life you are expecting in the future ten or twenty years from now. If you rely on 8300 dollars up until the last month before your death, that last month can quite possible the most miserable. The money will simply not get as much as it will today.

Keep Hoarding?

That is one way to prepare but that just means a longer stay in the rat race. For me, I prefer to adjust my cash flow so that money coming out will be a lot less than money coming in. If I start this practice today then maybe I can manage to live comfortably even if I do not use up a large amount of nuts a month. Coincidentally, since I will not require that much to survive in the future, my stay in the rat race will not be as long. By tweaking my lifestyle, I might actually be able to become wealthy.

Now I just have to find out what I need to cut out of the budget.

Seems like it is time for resolutions again. Good luck everyone.

If you enjoyed this post, make sure you subscribe to our RSS feed!

Related Posts:

1. Held Hostage in the Movies
2. Journey of 1000 Miles: Part II of III
3. Who Wants To Be (Perceived) A Millionaire?