Calculating retirement income starts with asking the question, "How much will I have for retirement?" You can get organized more easily when you figure out how to add up every single variable and expense, from monthly living costs to credit card charges to vacations and other entertainment expenses.
All you need is a simple spreadsheet program like Excel to get started arriving at some helpful answers.
If you don't know how to make a spreadsheet, teach yourself with an easy, online tutorial.
Then, make a column that outlines all of your current cash outlays and monthly expenses.
Everything should be categorized - food, medicine, clothing, gifts...
you get the idea.
Review your column with a family member - they can suggest other expenses you might have forgotten about.
Then, set up a horizontal column that features all of the months of the year.
Add in typical numbers for a few months to arrive at a working average you can use to calculate your retirement budget.
Your monthly expenses should be subtracted from your overall income - whatever is left over is your savings.
If your savings are not 40 to 70 percent of your income or more, you may run into difficulties during retirement.
Look at your numbers and figure out how to come up with extra cash for your retirement fund.
How much you will need depends on what you want out of life in your golden years.
Look for investment opportunities that might add to your nest egg as you get older.
This organized approach will help you feel in control as you plan for a new phase in life.