Sunday, 23 October 2011

What are Early Retirement Units (ERUs) ?

I am extremely uncomfortable sharing the actual numbers about my salary, savings goal, final retirement corpus etc in a wide open public forum.  However, I think it would be very difficult to discuss any early retirement strategy without diving into some detail regarding savings percentages, investment plans, asset allocation etc.  So I figured the best way to get around this concern, is to share all my numbers with a scale factor included.  That way I can confidently share all the details, without being concerned about my privacy. 

As an example, if I use a scale factor of 10000, and my monthly salary is Rs30000, I would refer to it on this blog as a monthly salary of ERU3 (Early Retirement Units 3 = Rs30000 / 10000)  Similarly if I invest Rs100000 in Mutual funds, I would refer to it as a MF investment of ERU10 (Early Retirement Units 10 = Rs100000 / 10000)

In this manner, you will get a clear understanding of my savings and investment plans, and can easily apply it to your own situation by scaling up or down appropriately.  At the end of the day, it is the relative proportions of income, savings, investments etc that matter, and not the absolute numbers!

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