I understand why people are poking fun at it.
In fact, even diligent savers would be hard-pressed to meet that threshold.
In 10 years, at age 35, Mary would have $116,712 saved and invested.
Her salary would have risen to $73,189, so yes, its within the realm of possibility.
Its also the minimum rate Id recommend she save for retirement.
That said, the article is fairly inoffensiveIve even writtensomething similar to it!
Because despite the possibility that the figure will be off-putting to some people, its also … true.
Yes, saving double your salary by the time youre 35 will help you achieve a stress-free retirement.
Of course, its not possible for many people.
Like everything, theres no one-size-fits-all rule that will apply to everyone when it comes to your personal finances.
Its the best-case scenario.
I think this rule of thumb wouldnt apply to everyone.
For example, what kind of health care coverage will they need in the future?
Will they work part time during retirement?
What is the cost of living where they will retire?
Will they have debt in retirement?
Are they planning on selling their house to fund retirement?
How to Save Double Your Salary
So what can you do?
Basic personal finance rules apply.
If you dont have a 401(k), open an IRA or a Roth IRA.
Theres no getting around those simple facts.
Youve heard all of this before, right?
All on stagnated wages or gig economy work.
Its just not enough.
But that doesnt mean you should just give up.
First,make a plan.
Start small and keep building$10 per month, then $25, whatever you could manage.
Dont getdiscouragedbecause you dont compare to arbitrary measures.
Focus on what you could control, and makeminor lifestyle changesthat can boost your bottom line.
The best investment someone in their 20s and 30s can make is in themselves, says Whitney.
In their skills, experiences and professional networks.
All of these wouldnt show up on a balance sheet but could help slingshot someone towards something better.
The same needs to happen with your finances.
