How Much of My Income Should I Be Saving?
Here’s a Secret: It’s Not Just About Income
Percentages are a beautiful thing. I might not be able to save $200,000 a year like a millionaire could, but I could save 20% of my income.
Saving a percentage of my income will give me the ability to reach savings goals already in line with my current lifestyle - just as $200,000 would do for a millionaire.
What’s the point? It’s not about saving once you reach a certain income milestone. It’s about giving yourself a choice at any income level. The choice to do the things that speak to you.
Since I’m no longer saving for freedom, I’ve shifted to saving for the ability to open doors of opportunity - without worrying about mortgage payments and utility costs should I have a down month.
I’m saving for the ability to stay strong in my conviction that I’m living the life I should be living. I’m saving for breathing room and peace of mind.
What are you saving for?
If you’re saving to check off another financial “should,” let me warn you: Any conviction you feel now probably won’t last.
If you’re saving for a purpose unique to you, you might not want to be boxed in by a certain savings percentage.
Maybe you’ll be motivated to take that percentage and double it. Or triple it.
Now, wouldn’t that be awesome?