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See how you'll fare in retirement with the 70 percent challenge

GOBankingRates Logo By Joel Anderson of GOBankingRates | Slide 1 of 17: One rule of thumb in retirement planning is to plan on replacing at least 70 percent of your income in retirement. And while there’s an abundance of literature out there about how you can build up the sort of nest egg to make that possible, building up your savings is only half the battle. Spending 70 percent of what you once did before retiring can be just as important — and challenging. After all, you’ve got a whole lot of time to find new ways to spend money that you didn’t before.However, one great way to tackle the issue is by taking the 70 percent challenge. Look at what you’re currently spending, and try to go one month where you cut out about a third of that. Then, extend the challenge to two, three or four months, while stashing away extra money in your retirement savings accounts. You might even discover that hitting that 70 percent mark is easy enough that you’ll want to keep it going to reap the benefits.So, here’s a quick look at some tips for how you can hit your goal in the 70 percent challenge so you can get a better sense of what retirement can hold for you on a reduced budget.

Take the 70 Percent Challenge

One rule of thumb in retirement planning is to plan on replacing at least 70 percent of your income in retirement. And while there’s an abundance of literature out there about how you can build up the sort of nest egg to make that possible, building up your savings is only half the battle. Spending 70 percent of what you once did before retiring can be just as important — and challenging. After all, you’ve got a whole lot of time to find new ways to spend money that you didn’t before.

However, one great way to tackle the issue is by taking the 70 percent challenge. Look at what you’re currently spending, and try to go one month where you cut out about a third of that. Then, extend the challenge to two, three or four months, while stashing away extra money in your retirement savings accounts. You might even discover that hitting that 70 percent mark is easy enough that you’ll want to keep it going to reap the benefits.

So, here’s a quick look at some tips for how you can hit your goal in the 70 percent challenge so you can get a better sense of what retirement can hold for you on a reduced budget.

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