GetstartedOpeninappMakingofaMillionaireSigninGetstarted21KFollowers·JoinTheMOAMCommunitySubmitaStoryDiscussionThread30-DayMoneyChallengeAboutGetstartedOpeninappABurningQuestionHowLongWillMyMoneyLast?Thissimpleequationcantellyouwhenyouwillrunoutofmoney,givenyourcurrentlevelofspendingBenLeFortNov23,2020·6minreadDesignedbyFreepikOneofthemostimportantfinancialplanningquestionsis,“howlongwillmymoneylast?”Therearetwoobviousareaswheretheanswerto“howlongwillmymoneylast?”hasmassiveimplicationsforyourday-to-daylife.Whenyouhaveretired.Whenyouhavelostyourjob.Thisarticlewillreviewtheequationthatcangiveyoutheanswerandasimplewaytofigureouthowlongyourmoneywilllast,evenifyouhatemath.ThescariestquestioninpersonalfinanceUnlessyoucancoveryourlivingexpensesinretirementthroughsomecombinationofpension,annuity,orincomegeneratedfromyourinvestments,youwillneedtobegineatingintoyourprincipalonceyouretire.Onceyoustarteatingintoyourprincipal,youneedtoaskoneofthescariestquestionsofyourfinanciallife;whenwillIrunoutofmoney?Toanswerthatquestion,youhavetwooptions.UsetheformuladevelopedbyLeonardoFibonacciinthe13thcentury.UseasimplefunctioninMicrosoftExcelthatrequireszeromathskills.ThehardwayLetusquicklyreviewthenerdyfinanceequationthatdatesbacktotheTimeofLeonardoFibonacciin13thcenturyItaly.NotbecauseIexpectanyreaderstoactuallyusethisequation(It’smucheasiertoletExceldothemathforus),butIbelieveit’simportanttoatleasthavesomebasicunderstandingofhowthemathworks.Sohereistheequationthatcantellushowlongourmoneywilllast.t=1/rln(c/c-Wr)Where;t=Thenumberofyearsuntilournesteggdropsto$0.r=Thereturnoninvestmentorinterestearnedfromournestegg.c=Howmuchofourprincipalweuseeachyear.W=Theinitialsizeofournestegg.TheeasywayThoseenrolledintheFinancialMentorProgramreceivearetirementsavingscalculatortocrunchthesenumbers,butit’snotdifficultforyoutocreateaDIYequationusingExcel,evenifyouhavelimitedmathskills.Whenyouopenupaspreadsheetinexcel,simplygoto“Formulas,”clickon“Financial,”andscrolldownandclickonthe“NPER”function.Itwillbr