My wife and I have been saving the majority of our household income for years. ._3bX7W3J0lU78fp7cayvNxx{max-width:208px;text-align:center} Cookies help us deliver our Services. Another 15% is maxing my Roth IRA with a vangard 2045 target date fund and increasing my emergency fund (cash with USAA and Ally bank). I make about $36k a year and save about 50% of that. Once you get to a point where you surpass your matching (maybe 6%?) In this article I’ll share how to save 50% or more of your income – which may sound crazy.According to the Bureau of Economic Analysis, the average American saves only 5.2%.. Increase that amount by half of every raise you get... so, if you start at 10% and get a 4% raise, increase your contribution rate to 12%. Hey that dresser has gotten me through a Dorm, two college apartments, a townhome, and it now resides in my First house. The Joint Committee on Taxation estimates that about nine in ten (90%) taxpayers now take the standard deduction since the changes in the tax laws two years ago. In other words, it takes the average American 13 - 45 years to save just one year's worth of living expenses. The profits generated by our accounts annually is more than we can contribute. Do you feel like 10% is enough to provide you with long term wealth / a retirement fund? 10% in your 401k alone, for starters. I save more, but I didn't start out saving more. If you're making a six-figure salary, saving half is much more attainable. – Someone with an income of $75,000 saving 20% would be able to amass $209,574.64 over ten years. IDFC First Bank Saving Account Interest Rates (January 2021) IDFC First Bank has raised the interest rate on savings account balances up to Rs.1 Crore to 7%, effective from January 1, 2021. ._9ZuQyDXhFth1qKJF4KNm8{padding:12px 12px 40px}._2iNJX36LR2tMHx_unzEkVM,._1JmnMJclrTwTPpAip5U_Hm{font-size:16px;font-weight:500;line-height:20px;color:var(--newCommunityTheme-bodyText);margin-bottom:40px;padding-top:4px}._306gA2lxjCHX44ssikUp3O{margin-bottom:32px}._1Omf6afKRpv3RKNCWjIyJ4{font-size:18px;font-weight:500;line-height:22px;border-bottom:2px solid var(--newCommunityTheme-line);color:var(--newCommunityTheme-bodyText);margin-bottom:8px;padding-bottom:8px}._2Ss7VGMX-UPKt9NhFRtgTz{margin-bottom:24px}._3vWu4F9B4X4Yc-Gm86-FMP{border-bottom:1px solid var(--newCommunityTheme-line);margin-bottom:8px;padding-bottom:2px}._3vWu4F9B4X4Yc-Gm86-FMP:last-of-type{border-bottom-width:0}._2qAEe8HGjtHsuKsHqNCa9u{font-size:14px;font-weight:500;line-height:18px;color:var(--newCommunityTheme-bodyText);padding-bottom:8px;padding-top:8px}.c5RWd-O3CYE-XSLdTyjtI{padding:8px 0}._3whORKuQps-WQpSceAyHuF{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-actionIcon);margin-bottom:8px}._1Qk-ka6_CJz1fU3OUfeznu{margin-bottom:8px}._3ds8Wk2l32hr3hLddQshhG{font-weight:500}._1h0r6vtgOzgWtu-GNBO6Yb,._3ds8Wk2l32hr3hLddQshhG{font-size:12px;line-height:16px;color:var(--newCommunityTheme-actionIcon)}._1h0r6vtgOzgWtu-GNBO6Yb{font-weight:400}.horIoLCod23xkzt7MmTpC{font-size:12px;font-weight:400;line-height:16px;color:#ea0027}._33Iw1wpNZ-uhC05tWsB9xi{margin-top:24px}._2M7LQbQxH40ingJ9h9RslL{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-actionIcon);margin-bottom:8px} I've read about this idea multiple times (save 10%, spend 90%) , but I'm not sure about how it works in practice. 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