If your income keeps pace with inflation and you save 20 percent of your income for 40 years you will have enough to live on for the next 30 years. If you only plan to save for 30 years you need to save more than 20 Percent.
Notice how most of your retirement account growth comes not from the income earning but from the additional savings added (for most people this lasts for decades). That goes to show you that chasing the latest fad in investments is not what gets you to financial freedom but rather saving a portion of your income. Always live beneath your means.
The Mammal Cage
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"The Mammal Cage" is the fifth story in *Of Seaweed and Chocolate*, but
it's also the first. Fifth is where it fits in the sequence of the book,
but it ...
3 months ago
1 comment:
I think it is even more important to begin saving earlier than to save for a longer amount of time. Of course, that is only true with compound interest.
http://www.daveramsey.com/article/how-teens-can-become-millionaires/lifeandmoney_kidsandmoney/
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