This episode of the Finance Flash Go! podcast is all about saving your money! In other words, what should your savings rate be?
This podcast is all about the basic strategies to achieving financial freedom though, which by definition is all you need. I say this to emphasize that what I am going to share with you is a very simple recipe to achieve financial well-being and a safe retirement.
Here is the recipe:
Save 20% of your gross income.
Do this and invest safely as I have shared and you will be almost assuredly set.
For example, we can determine that we would need to save $50,000/year for 30 years assuming a very conservative 5% return to live on $120,000 annually in retirement.
If your annual gross income is $250,000. This is right around the median (actually a bit below) average physician income in 2020.
So just about every physician should be able to do this, and really even do a lot more.
So, as you read my blog and we go into the new podcast episodes on creating a budget and a savings plan, keep this 20% savings rate as a baseline goal.
If you want to read about the 7 step simple path to physician wealth, find it here.
I really hope that you are enjoying the podcast! If you do like it, please subscribe and give us a 5-star rating to help us spread our message!
What financial topics would you like to hear about in the Finance Flash Go! podcast? Let us know in the comments below!