Writing in the Wall Street Journal on March 30, 2022, the author figures that you will need about $5,000 a year more in retirement than you expected!
Surprises are a part of life and our budgets need some wiggle room.
An unexpected toothache needing attention, veterinary services to remove the porcupine quills from your dogs face, storm damage to a part of your house, your grown children asking for help – the list is long.
How close is $400 a month or $5,000 a year to being the correct figure? Call it the $400 rule. The accuracy of that number is not as important as budgeting for the unexpected is.
With the habits of the Monday morning program, luck hardly matters.