According to Seedly's Personal Finance 101, I should allocate 20% of take-home pay to "savings" and 30% to wealth building instruments. How much should I allow my "savings" to grow to before I stop?

For example after 10 years of earning 50k take home pay, I would have 100k in a high interest savings account:

Should I leave them in the savings account in cash or invest them else where?

What is the threshold before me needing to act?

Can I save less now since I already have 100k in cash and just allocate 30% to wealth building?

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Frankie Rappaport

12 May 2020

20% + 30% seem much, but that would be good if achievable.

However the separation into savings versus wealth building is a theoretical construct.

Asset allocation and low investing fees are the prime points to deliberate well.

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Cryotosensei

12 May 2020

Blogger at diaperfinancingfund.blogspot.com

I suggest that rather than just looking at the absolute number, consider how your money makes you feel.

Does this $100k make you have a healthy relationship with money? Does it make you feel secure and sleep well at night or does it leave a nagging feeling at the back of your mind, whispering "if only I can have more"?

If you are apprehensive that no matter how much you save, you will never 100% feel at ease, perhaps you can look into the suggested benchmarks that we are supposed to save for our retirement at various ages. for instance, by the time we hit 40, it would be ideal if our savings is three times our annual salary. here's a good article: https://www.cnbc.com/2019/06/21/retirement-savi...

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