Wealth Guide Rule of Thumb (Patreon)
Content
A big part of planning is knowing where you stand and the baseline of where you need to be.
This table is a guideline that suggests how much a person or household should have saved at various ages based on their current annual household income. It’s often used as a rough benchmark for financial planning, particularly retirement savings.
Here's how to read the table:
- Find your current age on the left column, eg 40 years old
- Look at the top row to find your current annual household income, eg 175K
- The number where your age row and income column intersect is the suggested amount you should have saved to this pt in time....
For example, according to the table, a married couple with a household income of $175,000 per year should aim to have at least $500,000 saved by the time they are 40 years old.
This amount is a target and assumes a certain lifestyle, savings rate, and possibly investment return. It is a benchmark and not a one-size-fits-all recommendation, as individual circumstances can vary greatly.