10% Rule: Why Saving 10% Isn’t Enough?

[Yusra3]

The 10% rule is a popular way to save money. But if you're looking for true financial independence, you need to save at least 20%.

The idea behind the 10% rule is that you can save 10% of your income and still have enough left over to cover basic expenses. It's easy to see why this would be appealing after all, who doesn't want more money? However, it's important to remember that this is not the only way to get there.

You might be able to get by with saving 10% of your income and still having enough left over to cover basic expenses but if you want true financial independence, you need to be saving at least 20%, or even 30%, or 40%. And once you start saving that much money every month, it will seem like a breeze!

 

[Etini]

I don't put fast rules on people when it comes to savings, people should be allowed the liberty to save at their own level and pace. Savings is not a competition. It is just something that we need to do to help ourselves and the economy. So when you peg it, you put people under pressure. And anything done under pressure is hard. I have been in a situation I had to save under pressure and I have to say that it wasn't palatable.

As far as the person has a mind to even save something, it is commendable. Savings is not a function of the amount but a function of consistency.
If you save $100 twice a year and I save 20 dollars every month for a year, my savings is clearly better than your own. Let everyone save at their own pace. Let's get rid of the pressure when it comes to savings.