The reality of Underestimates

Did England underestimate Afghanistan? (ICC World Cup Cricket match 2023)

or

Did South Africa underestimate Netherlands?

If history was to go by, neither should have.

Hdfc Life Pension Fund came out with a survey today. Apparently, Indians surveyed said that ₹ 1.3 Cr was a good enough corpus for them to retire 😱🙄 Really?

No, I’m not at all surprised by the way people Underestimate their Expenses & Overestimate their Return on Investments (esp…real estate & equities)

My experience….

Very few people come close to exactly estimating their yearly / monthly spends (these are the people who are really good at managing their spends)

Many people thoroughly underestimate the level of expenses they incur (recurring or otherwise)… these are the people who think they know, but they don’t

The most standard response I get for a question like – what do you think is your monthly expense?….. Oh, about ₹ 50-60k is good enough to run my home 😁🙄

Really….when I see a couple of cars parked in the garage which can comfortably take in 45 litres of diesel (forget petrol) on one full tank 😊….I can understand the state of estimates 🤷🏼‍♂

Retirement – people’s thought – live off my accumulated assets / income from assets….no problem, but pls do estimate the Spends as we spend in reality.

Underestimating Expenses is the #1 problem in Retirement pls don’t get the figure incorrect

Always…..

Overestimate Expenses

Underestimate Income

That’s the way 🙏🏻

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