Dave Ramsey recommends 15% in his baby steps.
JL Collins in his book, The Simple Path to Wealth, recommends 50%.
Some people in the F.I.R.E. community, eager for financial freedom, will invest even higher than 50%.
For you it’s probably somewhere in between.
I’d agree with Dave Ramsey that 15% is a good floor. You definitely don’t want to be lower than that.
But I’d suggest you be quite a bit higher.
You can achieve this by:
- Lowering expenses to free up money to invest
- Earning extra income that allows you to invest even more
Doing both is a game changer.
I wanted to write this newsletter as a reminder not to forget to invest each month.
And the best place to invest?
It’s extremely difficult to beat this over any extended period of time.
Start with 15% and try to increase the amount each year.
You’ll be happily surprised over the decades as you watch your investment account double over and over again.
