should be targeting a savings rate in the range of 20-25% of income, more if they can manage it. Since this is approximately five times what the average American household is saving, this notion is likely to be met with fierce resistance by readers who can name an endless list of claims on their income: mortgage, utilities, car, kids' activities, clothes, visits home to see the family . . .
But as Felix points out, you have to assume that you're not going to see 8-10% return on any of your assets: not your house, not your stock market portfolio, not your wages
Whatever you do will be insignificant, but it is very important that you do it.
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I put away around 25%. An easy way to get there is to put over 50% of your raises into your company 401K (or other savings if you don't have that) while maxing your IRA contributions and contributing to other savings (stocks/cash/whatever)
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