7. Save 20 Times Your Annual Expenses

This is something you will really have to be honest with and get into the details. Compared to others, this step involves you to know your expenses inside out. Only then will you get this step right. It is of utmost importance to know your expenses, especially when you are retired. While some expenses like entertainment and apparels plummet, some like insurance and medicine escalate. Get this amount, multiply it by 20 and this is what you will need to retire comfortably. However, this is just an approximate amount. It is based on assumptions, like you have already paid off all your loans and debts. It also assumes that you and your spouse have adequate health insurance. Get a health insurance which covers you till you are 70-75 years old. You can renew them each year, rather than getting newer ones