Don’t Look for Rules From Financial Gurus, Look for Basics From Them
Personal finance gurus who write books and run seminars can be great helpers when you start your financial journey. But this is not the gospel.
Often the advice they give should be as pleasant as possible, not realistic. And if it takes you to the door, that’s great. But, as J.E. Miller at 20SomethingFinance, this is just the beginning:
These days, wherever you look, major personal finance gurus are uniformly recommending a personal savings rate of 10% (Ramsey’s is 15%), to the point of becoming a self-fulfilling prophecy. Recommending or saving anything over 10-15% would be considered “extreme,” in part because it has become the standard. Everyone has something to sell, and when the average personal savings rate is 5%, 10% is sold in droves because it is achievable and convenient to get into habit.
That’s okay, BUT … 10% will never bring life-changing money.
… if maybe you didn’t start saving at 22 and don’t stop, you are doing everything perfectly, and the market is doing especially well over these 40 years.
It’s not that a 10% savings rate is awful, or that personal finance gurus are evil book carriers. Instead, treat their advice as steps for newbies – Miller compares them to training wheels – that once you master financial stability, you can adjust to your own situation (how much you saved up when you want to retire and soon).
This is a good read with a lot of good discussion, so follow the link below to see Miller’s full article.
The Problem With Major Personal Finance Gurus (And The 10% Rule) | 20SomethingFinance