Your savings rate is one of the most important metrics you can track as you manage and measure your progress toward financial success. Here’s how to increase yours.
Do you know how much money you save right now?
When we say “savings rate,” it means the percentage of your gross income that you put toward long-term goals — things like retirement or financial freedom.
This isn’t just money you set aside to spend in a year or two; yes, you need to save for a trip you want to take or for a house you want to buy in a few years, but that doesn’t count toward your savings rate because that is not long-term savings or investments.
As Eric puts it, it’s more like glorified spending.
But how much should you be saving? What’s enough, and what’s too much? Is 40 to 50 percent unrealistic — or just the aggressive target you have to set if you have big hairy audacious financial goals?
We break it all down in this episode and share why your savings rate is one of the most important metrics you can track as you manage and measure your progress toward financial success. We cover:
- The bare minimum you should be investing for the long term.
- Why we focus on saving 40-50 percent of our income, and how we reached that as our goal
- The 3-step process we use for making this happen consistently, year after year
If you’re ready to take your ability to grow your wealth to the next level, this is the episode for you.
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