My rule of thumb is that every raise I get – half goes into increasing the retirement savings % and half to the checkbook (or preferably current saving for vacation, house projects, etc). That keeps the lifestyle inflation under control.

Good overview.

Thanks for your thoughts. I always appreciate what you have to say.

What I like about Dave’s approach is that it is typically very simple and straightforward. Almost everyone can do it, it is just a matter of getting started. Consumer Debt is the cancer that typically must be dealt with first. After that, most people find that the freed up cash flow from not having to make credit card payments, is sufficient enough to start saving for retirement, college, and early pay o ff of the mortgage.
Damon Day´s last blog ..Debt Settlement Nightmare for Phoenix Woman

It sounds like we are splitting hairs about this 15%, but Dave says in Chapter 9 of his book The Total Money Makeover, “When calculating the 15%, don’t include company matches in your plan. Invest 15% of your gross income. If your company matches some or part of your contribution, you can consider it gravy. ”

But either way, if you consistently invest, you are doing more to prepare for retirement than the vast majority of our society.

Thanks for reading. I appreciate your thoughts.

Dave actually says that the employer match does count in your 15% in his Financial Peace University class. But, if you don’t count it then it’s even better for you!

Blessings!
Jon´s last blog ..Amazing!