In your 20's 10% is a great savings rate. There are many things such as building an emergency fund, purchasing a car, home, etc that will compete with investing, As you get raises allocate some of this to additional savings.
By 30's you want to hit 15%-20% savings rate.
By 40's 15%-30% savings rate.
In your 50's 15%-50% savings rate.
Late starters should be at the top of those ranges while early starters can sit at the lower end. In your 50's it is more about how long you work than how much you save. A 50% savings rate in your 50's is more about modifying your standard of living to adjust for a late start than actually getting investment performance.
By 30's you want to hit 15%-20% savings rate.
By 40's 15%-30% savings rate.
In your 50's 15%-50% savings rate.
Late starters should be at the top of those ranges while early starters can sit at the lower end. In your 50's it is more about how long you work than how much you save. A 50% savings rate in your 50's is more about modifying your standard of living to adjust for a late start than actually getting investment performance.
Statistics: Posted by abc132 — Fri Jul 26, 2024 2:11 pm — Replies 26 — Views 1005