3 ms·
No one says you have to save 50-80% of your income. The savings rate in the US is 5-10% historically (ignore the 33% spike in 2020). If you're saving 10-20% you
by bko 5y ago
No one says you have to save 50-80% of your income. The savings rate in the US is 5-10% historically (ignore the 33% spike in 2020). If you're saving 10-20% you're well ahead
https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT
- ac29 5y agoI suspect that 5-10% number is actually a bit deceptive - a huge number of people are saving 0%, so among those who do save, the average must be significantly higher.
- nly 5y agoOne of the biggest things not counted in these stats is that if you have a mortgage you're banking equity. Instead of paying say $2000/mo on rent you could be paying say $2500/mo on a mortgage but only $1000/mo of that might actually be interest. So even without capital appreciation on property you're ahead of the renter.