No Substitute For Saving - Megan McArdle - Business - The Atlantic
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