Savings Rate Goal

Getting the magic of compounding interest to work for you is the goal of savings. However, it takes time. It is not quick on its own.

There are only a couple of ways to speed it up. One is to get a higher interest rate, but that is not something that you can control. Also, higher rates imply higher risk so rates alone are not necessarily the answer. You should, based on your risk tolerance, work to get the best rate that works for you. Even then however, government and central bank policy can force rates down like they have for over a decade after the 2007/2008 financial crisis.

Savings rate is another way to speed up the effect of compounding interest. You also have more control over your savings rate than you do anything else. It takes patience and discipline but having the highest savings rate possible for yourself is a great way to build your investment portfolio and your overall wealth. Your goal should be 20% of your income. That is a big pull but it is possible. Also, if you are hitting that goal some of the pain is removed by being able to actually see the growth happen. You will definitely see results when you are hitting a 20% savings level.

So, work your way to that savings level and watch the growth happen. You can absolutely do this!

As always, if you are looking for a gift for the young reader in your life, you can find some great children’s books on Amazon. Just go to these links The Desert Fairies of Oylara, The Rainforest Fairies of Oylara, and The Artic Fairies of Oylara and order them.

Additionally, check out this very cool podcast on Spotify called Gen X Dad and his Gen Z Teens. Entertaining!

Finally, check out some pretty cool music on YouTube if you have a few minutes: Introduction , Mosh, Smoke, Watch Out , and First Day Out. Enjoy!