I tried to save 20% of my gross pay: 10% into tax-advantaged vehicles (like a company 401-K or IRA); and 10% into regular taxable accounts. For the latter I ope

I tried to save 20% of my gross pay: 10% into tax-advantaged vehicles (like a company 401-K or IRA); and 10% into regular taxable accounts. For the latter I opened a brokerage account and set up a direct deposit to it from my paycheck. Keep emergency savings in a money market fund. Then buy shares of an index fund (or two). I started (back in the 1980s) with a 2-3% savings rate at first. As I found ways to economize, I could save more. And as I got raises, I tried to save most of each raise. After about 4-5 years, I was up to 20%. The taxable part could be used for large expenses, like a car or down payment on a house. The tax-advantaged savings accumulated until I retired in 2016. EDIT: During my working years, besides the usual family expenses, I bought books, lectures from the Great Courses, and a second master's degree. Now I have more time to make use of all of these.