A common question, especially for ‘normal’ people in their rare moments where they ever think about saving, pensions, or their financial planning, is ‘how much should I save’? It is a key question. Unfortunately, a lot of the typical answers you’ll hear/read are misguided or even wrong. Instead, I think anybody asking this question must be told three things.
For example, I was riled recently by something that the (normally sensible) Wealth Dad posted on Twitter:
I don’t mean to pick on the Wealth Dad because he is far from alone. A quick Google search of ‘how much should I save rules of thumb’ yields the following:


It’s not surprising that investment firms like Fidelity advocate fairly chunky savings rates. But it isn’t just them.
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