Blog #4: Future Lifestyle and Budget

• In 10-15 years, I want to have a simple lifestyle. Simple is better, since I do want a stable income. Hopefully, as a pediatrician, I will be making around $140,000-$199,000, according to http://www.payscale.com/research/US/Job=Pediatrician,_General/Salary My total expenses will be greater than $80,000, depending on the circumstances, but this is just an logical conclusion. I know that there will be loans and other payments to cover once my education and training is complete!
• It will definitely be necessary to put aside money for emergencies, monthly bills, etc. For my rainy day fund, I'd like to keep a storage of physical cash, because if there is no electricity available, I won't be able to access my online bank account or ATM. Taking into account my yearly income, I should be building a rainy day fund for three months to a year, according to http://www.nerdwallet.com/blog/rates/faq-saving-rainy-day-fund/ Therefore, 5-10% of my yearly income should be attributed for this purpose.
• In terms of retirement, 10-15% of my yearly income should be going toward my retirement fund, according to http://www.forbes.com/sites/baldwin/2013/10/01/formula-how-much-to-put-in-a-retirement-account/. This is an estimate, but it can vary if I start saving when I am in my twenties! Then, by the time I'm in my sixties, I would have around $520,000 saved. This isn't accurate, but a rough estimate.
• My future expenses definitely make me nervous, and I will be economically strained, but there will be emergencies and unforeseen events that could change these results. It is going to be challenging, and it makes me nervous! I've learned that it is important to focus on what is necessary, especially when you are in a budget crisis. Having a roommate in my twenties will help me save during a ten-year period, but I can see myself beginning to struggle during the 15-year period. Finding a subtle apartment, and keeping everything simple will hopefully help me in the future.