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This is absolutely the best way. My partner and I set our goal at X% of our total annual expenses in savings exclusively, before we started trying for children
by Loughla 5y ago
This is absolutely the best way. My partner and I set our goal at X% of our total annual expenses in savings exclusively, before we started trying for children
A nebulous 'when we're comfortable' will never be comfortable. Whereas a set, concrete goal based on income and expenses is measurable and provides a clear path to an outcome.
- nuclearnice3 5y agoWhat's X, approximately? As a frame, I think 25 times annual expenses is a retirement goal.
- Loughla 5y agoNot X times, but X% of. For us, that was 90-100% of annual expenses. We wanted a one year cushion in case something went wrong. And to be clear - that's cash money, not investments. That is simply a crash easy to access liquid asset in case of emergency. If we couldn't say, this cash is exclusively for this goal, we didn't count it. It took 6 years to put together, with both of us working in education.