For those on the journey to financial independence, I’m sure you’d appreciate a tool that crunches the numbers for you and lets you know how soon you can hang your towel and wave your active working lifestyle goodbye. You don’t want to be flying blind. And, setting forth on this financial independence journey without knowing exactly how long it’ll take is actually flying blind. Well, there is such an online tool, it’s called, Networthify.
What is it?
So, Networthify.com is the place you go to learn how long until you can retire early or become financially independent. This brilliant application asks you a couple of questions before working its magic and informing you how many years you have to retirement. What Networthify tells us is that, heading to early retirement, the most important number is actually your savings rate, not your return on investment. So, in essence, the more you save the less number of years you have to continue working. Amazing, isn’t it.
So how do I use it?
To get the information you need, simply key into the appropriate spaces your current annual income, current annual savings, current annual expenses and current portfolio value (if you have any). The savings rate will automatically appear so don’t worry about that one. Click on crunch the numbers and, in a matter of seconds, the tool will candidly tell you how long it’ll take for you to retire. It then goes ahead to break it down for you on a table, showing you what your net worth would look like over the indicated period. With such an awesome tool at your disposal, you can go ahead to adjust your savings rate to accommodate the number of years you intend to continue working.
If you ask me, Networthify is a great place to start if you’ve just taken the leap. Aside from knowing how long you have to retirement, Networthify also gives the added functionality of compiling all your financial accounts in one place therefore giving you the power to track your spending. You can also keep track of your net worth as the years roll by and track your savings rate. And you don’t have to worry about this sensitive information leaking out to unknown parties. Throughout the process, you remain anonymous with no need to reveal your identity at any point.
The tool is straightforward to use and the charts and analytics are clear and simple to understand. It would have been an interesting addition to have a box to enter your current age for it to tell you the age you’ll retire. But that’s just for fun, you can still add up the years given to your current age. On a more serious note, there are complaints from users of lack of a password retrieval feature, incase one forgets their password. Also, the expenses remain the same over the years. Networthify should factor in inflation, increasing the expenses by a percentage over time. This would give a more accurate representation, don’t you think?
Get started. There are currently very few tools that are as easy to use and as intuitive. In the process, you’ll be able to adjust your savings rate, by keeping track of your expenses and cutting out whatever you notice isn’t quite necessary. By adjusting these variables, Networthify will adjust the overall years to retirement and your net worth. In a way, Networthify challenges you to save more and increase your portfolio and consequently set yourself free faster. In any case, who wants to work for 30 years plus?
As usual, if you have any questions, Ask the Fellow!