AI formulas to save and create your own “pension piggy bank” for your retirement
Saving is a fundamental practice to be able to buy a house, finance studies or ensure a somewhat more peaceful retirement. In fact, this last point is one of those that most worries Spaniards. He increased life expectancy and the uncertainty about the sustainability of the public pension systemmakes having your own fund essential in order to have a much more peaceful old age without having any type of financial shock.
Starting to save money from an early age is the key because it allows you to store significant amounts for the future. The fundamental thing is to do it constantly, even if it is with small contributions, to achieve a more solid future. Today, artificial intelligence offers some formulas that can help create that particular “pension piggy bank”.
The classic 50/30/20 rule
This technique is based on managing money more effectively. To do this, you must divide the net income received each month into three different groups: 50% to cover the most basic needs, 30% for dispensable expenses and 20% for savings. This method is flexible because it can be adapted depending on each person’s personal situation. The formula balances the expenses you have to achieve a financial goal such as saving for retirement.
The most important thing is to keep in mind that the amount you will save will depend on your income. This means that The higher the income, the greater the savings.. For this reason, first of all, it is necessary to calculate your income to prepare a monthly budget.
The “Pay yourself first” formula
Artificial intelligence, specifically ChatGPT, explains that this formula is “a way of thinking and organizing your money”. This means that instead of saving what is left over at the end of the month, you will have to make a payment to yourself first, that is, as if you were paying a bill.
Once you receive your salary, and before you spend anything on rent, food or entertainment, you set aside an amount of money for your future self. And then, with what is left, you cover the rest of the expenses you have throughout the month.
The Retirement Goal Formula
Finally, another of the formulas that it provides is that of retirement goal. ChatGPT says that “it serves to estimate the total capital that you should accumulate before stopping working, so that this money allows you to live each year without running out of funds.”
To do this, we will have to calculate How much will you spend per year when you are retired?and then multiply that by the years you expect your retirement to last. For example, if you think you will need €24,000 a year and you expect to live 25 years after you retire You will have to have saved about €600,000. This rule, as explained by the AI, says that “you can withdraw 4% of your total capital each year.
