How Much Money Do I Need to Retire?

‘Everyone’ wants to retire from work.

Some faster than others.

They don’t want to continue working 9-5 until they’re 65+.

And then... there is the oddball out there that never wants to retire. (Like me).

But for those people that DO want to retire, I want to ask you a question...

HOW are you going to retire?

Do you think you need millions to do that?

Do you think having a ridiculously high net worth is going to help retire you?

What if I told you that you don’t need millions to retire and still live like a millionaire?

Would you believe me? Or would you think I was full of rubbish?

Having a high net worth doesn’t really mean anything to me.

There is only one thing that truly matters to me.......CASHFLOW.

Some people would call this “Passive Income”.

But cash flow and passive income are two entirely different things.

Don’t worry, I am not going to give you a lecture about the differences here. I will save that for another article.

Let’s just say for the purposes of this article, passive income just means money coming in that you only have to mildly work for in order for this money to keep coming in.

This is what you want....Passive income (Cashflow). NOT necessarily a high net worth.

You can have a pretty high net worth and still be “broke”.

Just ask my friend Harold who is “worth” around $30 million and still struggles to pay his bills.

But when you have money rolling in month after month with little to no effort on your part, that is what is going to change your life.

But understanding how much passive income you need to retire on really comes down to understanding just a few things.

1. How much money will it take to continue living like you want to live?

You have to decide what type of lifestyle you want to have from here on out.

Do you want to have a lifestyle where you travel 300+ days per year around the world and stay in 5-star hotels and eat the best foods in the most lavish restaurants?

Do you want to have a nice comfortable house in the countryside, take 2-4 vacations per year and drive Toyota Camry’s?

Or maybe you just want exactly what you have now, but don’t want to work anymore for it...

No matter what lifestyle you choose, you have to choose something.

Let’s take for instance you want to live the same lifestyle you are living right now.

And let’s say all of your expenses and liabilities equal a total of around $4000 per month in order to sustain.

That means you will need a minimum of $4000 per month passive income coming in each and every month.

Then, and only then can you really retire.

And it doesn't matter at what age either.

If you want to retire at age 30, and you can make the money you need to sustain your lifestyle at 30, then you can retire.

There is no need to wait until you are 65+.

2. Is Passive Income really passive?


There is no such thing as truly passive income.

There is always something you need to do in order to make that money.

Maybe it is just checking ads that you are running once or twice per week.

Or maybe it is collecting rent once per month.

Or even writing one single email per week.

Whatever it is, you have to do something to keep it going.

This dream of making money every month and not doing anything for it is not real.

And you shouldn’t be trying to find it either.

I can’t stand it when I see all these get rich quick people wanting money today without having to work for anything.

It’s not going to happen.


3. What kind of passive income do I need?

Ask this question to 10 different people, whether it is a business man, an investor or whoever and you will undoubtedly get 10 different answers.

Some people will tell you to acquire houses for rental income.

Others will tell you to get into paper assets and look for stocks with dividends.

My personal preference as to what type of passive income is the best is online businesses.

Maybe you create a business doing affiliate marketing (which is selling someone else’s product or service).

Or you create and sell a course or membership.

Or even have a business making and selling shirts and other merch on something like Teespring.

Doing things online is 1000 times better than the other asset types in my opinion.

There are 4 main asset classes

  1. Businesses
  2. Real Estate
  3. Paper Assets
  4. Commodities

Online business falls under the first asset class of businesses.

Doing things online takes less money to start up...

Less work to get and keep running...

And you can get it up and going much much quicker than most others.

In fact, the good majority of people in my course “The Cashflow Engine” start seeing money come in within 63 days from starting.

The Cashflow Engine

I have been into all asset classes at one time or another.

And currently in multiples now.

But by far, online businesses are the best and my most preferred.


So, to go back to the main question of How much money do you need to retire....You just need the amount coming in each and every month to live the lifestyle you want.

Not a single overall net worth type of number.

Want a luxury lifestyle that will cost you $10k per month? That’s fine.

Just make over $10k per month in Cashflow with an online business.

And WHAM!...You can retire.

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About the Author

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Karma L. Senge has been in advertising, marketing and copywriting for over 20 years. He has built 7 companies into the 7 and 8-figures and loves sharing his knowledge of business, building endless streams of cashflow (passive income), money, productivity, marketing and advertising with others.

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