saved up 35% of early retirement target 2017

High-level numbers below

  • My Age: 36
  • % Saved for Early Retirement : 38%  34% (target % reduced due to 10.4% LTCG tax announced in the budget after this post was originally published. I’ll write a detailed article on this new tax’s impact next month)
  • Next year we are hoping to reach 50% 46% of our target. Fingers crossed!
  • I’ll update the progress bar on the right-hand sidebar every year with our progress
  • Current Monthly Saving rate : 25%
    • single-income household as mentioned in the NRI post.
    • this savings is from my business income
  • Effective Monthly Saving rate : 50%
    •  wife is moving her low-return F.Ds to mutual funds via SIP so we are effectively saving 50% of income in mutual funds towards retirement.
  • We currently have a 60:40 split between active Mutual Funds & inactive EPF/PPF.
    • more SIP in the coming years will tilt this balance towards equity
  • Our Total Portfolio Return is approximately 14%. Our Expected return is lower at 12%. 
    • Our Large-Cap fund returned 18% as of Dec 2017. We are taking this as indicative of our equity returns even though we have some mid-caps that performed better because only our large cap fund shows the XIRR 🙂 For accurate numbers we have to calculate manually and we haven’t done that yet.
    • Our PPF interest rate was 7.6% as of Dec 2017. Using this as indicative of debt returns. I’m deliberately using the lowest PPF rate since I’m approximating here.
    • So with a equity:debt ratio of 60:40, our total portfolio return is around 14%. (60×18% + 40×7.6%)
    • I’m sharing our returns only to document the numbers so we can look back many years from now on the ups-and-downs in returns. We are not really worried about the ups-and-downs as it will get smoothed out over the years like I explain in my blog post 12% return from stock market every year?


LTCG Tax impact on Early retirement

How to convince your partner about Early Retirement

How to get richer with Early Retirement

Simple trick to save money: Use Cash


  1. Awesome find. Really glad to see this. I’ve followed heaps of blogs on early retirement but they’ve always been foreign and it’s tough to relate. I’ve been on a similar journey for a few years now. Started taking it seriously maybe 4 years ago and now at 40, I’m 75% of the way to my corpus goal and starting to get optimistic about getting there in the next 3-4 years (I’ve targeted 45).

    Made some bad choices early on – ULIPs, FDs etc. but it’s starting to get better now as I’ve focused over the last few years and been ruthless about a few things. Still a ways to go – especially on the expense side where there’s a lot of fat but it’s tough especially with a young child.

    I’ll be following your blog regularly to see how you do.

    • wow! thanks for sharing your journey Anil.
      really happy to see people close to achieving their FIRE goal in India!

      Would you be interested in a short interview to share lessons learned from your journey?
      Our readers would benefit from reading about how you are saving up for FIRE while balancing child-related expenses.
      Let me know if you are up for the interview in your reply and I’ll schedule one 🙂

      • Hey…thanks for featuring the comment and responding. Sure I’d have no problem doing a short interview. I have to warn you though…my story’s pretty boring. No dramatic events. Always had a savings habit. Just woke up to investing and financial independence at some point and started making changes.

        Feel free to get in touch if you want to talk. My email ID is in the link.

  2. If I have to invest incrementally every year, is it better to invest in EPF/NPS or in an equity MF SIP.

    My stats : Single income, 36, one kid 6 years. Monthly saving : 44%, no debt

    • Thanks pravinsn1! Yes! a lot of articles on early retirement are all for U.S folks. I want to record my breakthroughs in early retirement as I accomplish it in India 🙂 Good luck on your journey! Do subscribe to the blog via email for more insights as I post them

    • Thanks himani! We plan to document our journey so others might feel inspired. The idea is to hit & solve problems that others might face after us. Welcome to SavingHabit!

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