May 19, 2008

How much should we be saving?

If we knew the answer to this one, then we would all be safe from worries of what is going on in the world, when a credit crunch happens as it is doing at the moment. But even if there was some magic solution that we could follow and in the event that we make it to retirement age, there will be a nice nest egg there to retire on.

But it makes no difference whether you save 5% or 10% of your annual salary there are just too many other elements that can interfere with your plans.

Firstly there is the interest that you get on your savings, this fluctuates virtually all of the time and as many people want to have low interest rates because of mortgages then the return is not great. Then there is inflation this is another factor that that is a concerning factor and will have an effect on the prices.

Source [Wall Street Fighter]