The national personal household savings rate has recently increased from 7.6% to 8.1% – still a far cry from the all-time high of 20.6% in 1973.
We often hear 10% floated around as a savings goal to target. But Jacob Lund Fisker, of Early Retirement Extreme, has a unique perspective on savings.
If you save 10% of your income each year, meaning you spend 90%, at the end of 9 years, you will have amassed the equivalent of 1 whole years’ expenditure.
Effectively, you can buy your own long service leave through this plan – imagine a year off work, all expenses paid, every 9 years!
Let’s take it to the next step though.