Comments on: 25 Rules to Grow Rich By #12: Proportional Savings

By: Kris

Kris — Fri, 19 Jun 2009 19:15:17 +0000

I disagree with your re-write and your assertion that someone making 20k can’t save 2k a year.The whole 10% thing is a habit, and once your in the habit it doesn’t matter how much you make you have a habit of putting 10% away. The problem is that parents no longer teach that to their kids so the habit never gets developed.

By: Phil

Phil — Tue, 27 Nov 2007 16:07:12 +0000

Would you consider your mortgage as part of this investment?

The reasoning is that you are building equity of some sort. Though I can see it on the flipside as it just being an expense

By: Lisa

Lisa — Thu, 20 Sep 2007 16:26:05 +0000

I would revise the rule to say simply you should save as much as you can. This article does not take into account items such as christmas and birthday gifts, work bonuses, and tax returns that can be safely socked away. It does not take into account different life situations; I make about $25k a year but can save much more than the hypothetical single parent as I don’t have kids or debts, and I refuse car ownership and a host of other expensive things; I can save way more than $1k a year.

By: Kat

Kat — Fri, 07 Sep 2007 15:56:28 +0000

Even the revised rule doesn’t work. I make more than 20k, but I have student loans and live in a high cost of living area. My salary doesn’t go as far as it would in say, Iowa.

By: John Osmond

John Osmond — Mon, 03 Sep 2007 12:49:02 +0000

Is that pre or post tax income?

By: John Osmond

John Osmond — Tue, 03 Jul 2007 09:34:35 +0000

Is this 20% (or 10%) of pre-tax or post-tax income?

Do pension fund contributions count as part of the 20% (or 10%)?

Thanks

By: English Major

English Major — Wed, 29 Nov 2006 23:09:48 +0000

This article is absolutely stellar, and I’ll definitely be adding The Simple Dollar to my blogroll because of it (also because I like the site in general, of course). The relative value of a dollar is far too often neglected by personal finance bloggers (and personal finance writers in general), and I appreciate also the social awareness that this kind of observation implies.

Thanks for an awesome article and an excellent blog.

By: MoneyFwd

MoneyFwd — Tue, 28 Nov 2006 17:16:08 +0000

I think you’re in the right direction with this, except for the minimum. I don’t think you can give a dollar amount that would really work for everyone. In my situation, I get paid well over $20k a year, but because of my living expenses and paying for tuition and for my fiance, I have very little I can put away (if anything usually). I think the new rule should say something like “If you are not saving 20% of your income when more than 120% of your income covers savings plus all living expenses, then you’re not saving enough.” This takes care of individuals who make a lot more than $20k but are living on the edge without a choice.