This post made me question the usual "save 10%" advice. Sarah’s example shows how personalized financial planning is way more effective, and it’s a good reminder that one-size-fits-all rules don’t work for everyone.
This made me rethink the usual savings advice we hear. Sarah’s example shows how the 10% rule can actually hurt someone’s long-term living standard if it doesn’t fit their situation. It’s a good reminder that savings should be based on personal goals and circumstances, not a general rule. It’s clear that understanding my own goals and resources is key to making better financial choices.
Challenging the common save 10% rule makes so much sense, especially with the example of Sarah, who would see a 40% drop in her living standard by following it. Personalized financial planning based on individual goals and circumstances makes much more sense.
I found this post insightful, as it points out the risks of following some of the more generic financial pieces of advice. It emphasizes the importance of having a more adaptive + personalized plan for your highest standard of living throughout your lifetime.
This reading I found very eye opening. As a working student I always worry i'm not saving enough... but saving should be dependent on each situation rather then focusing on the idea of 10% for everyone
This makes me think about how each stage of life might require a different financial strategy, and being flexible could lead to a more balanced and fulfilled life.
I completely agree, especially from a psychological perspective — money isn’t just about numbers; it’s deeply tied to our emotions.
Every savings goal, whether it's for a child’s education, retirement, or something else, involves a constant balancing act between the 'present me' and the 'future me.'
While achieving a perfect balance is nearly impossible, the key is to combine both the hard data (your actual finances) with the emotional side of your decisions: bringing the distant future closer and allows you to adjust your financial plan as life changes.
I approached this with collecting and analysing as much data as possible (and keeping business approach to it), then extrapolating my "financial twin" behaviour to the future and then playing around like "What my model will show if future me wants XYZ by the end of 20xx" --> what steps should I follow", basically reverting that "twin" to real me. It might sound abstract, but helps me being systematic about finance
I thoroughly enjoy articles like this, as it brings in a new age of thinking about our "necessary" budgeting. Because once again, everyone has their own circumstances and can not abide the the standard rule of the "10%" savings rate. You have to evaluate your current situation and understand that it is necessary to take out that loan, or use your whole paycheck to eat. But don't forget that there is still an end goal to all of this, that this method is not just to keep you in your same position you are in. But to leverage your way out to financial freedom, I believe anyways.
This post made me question the usual "save 10%" advice. Sarah’s example shows how personalized financial planning is way more effective, and it’s a good reminder that one-size-fits-all rules don’t work for everyone.
This made me rethink the usual savings advice we hear. Sarah’s example shows how the 10% rule can actually hurt someone’s long-term living standard if it doesn’t fit their situation. It’s a good reminder that savings should be based on personal goals and circumstances, not a general rule. It’s clear that understanding my own goals and resources is key to making better financial choices.
That “savings advice you hear,” is wrong and doesn’t care about your financial health.
Challenging the common save 10% rule makes so much sense, especially with the example of Sarah, who would see a 40% drop in her living standard by following it. Personalized financial planning based on individual goals and circumstances makes much more sense.
Do you think most people are ready to move away from these rules, or will simplicity always outweigh personalization for most households?
But, simplicity is undershooting the best living standard. Why do that?
I found this post insightful, as it points out the risks of following some of the more generic financial pieces of advice. It emphasizes the importance of having a more adaptive + personalized plan for your highest standard of living throughout your lifetime.
When generic financial advice isn't well grounded, money mistakes can happen. Who wants that?
This reading I found very eye opening. As a working student I always worry i'm not saving enough... but saving should be dependent on each situation rather then focusing on the idea of 10% for everyone
Yes, yes! Thank you for contributing.
This makes me think about how each stage of life might require a different financial strategy, and being flexible could lead to a more balanced and fulfilled life.
Surely you are right. Even micro stages require a quick examination. Doesn’t take long once you have your attributes built into the software.
How do you personally approach balancing saving for the future with enjoying your present lifestyle?
I completely agree, especially from a psychological perspective — money isn’t just about numbers; it’s deeply tied to our emotions.
Every savings goal, whether it's for a child’s education, retirement, or something else, involves a constant balancing act between the 'present me' and the 'future me.'
While achieving a perfect balance is nearly impossible, the key is to combine both the hard data (your actual finances) with the emotional side of your decisions: bringing the distant future closer and allows you to adjust your financial plan as life changes.
I approached this with collecting and analysing as much data as possible (and keeping business approach to it), then extrapolating my "financial twin" behaviour to the future and then playing around like "What my model will show if future me wants XYZ by the end of 20xx" --> what steps should I follow", basically reverting that "twin" to real me. It might sound abstract, but helps me being systematic about finance
I thoroughly enjoy articles like this, as it brings in a new age of thinking about our "necessary" budgeting. Because once again, everyone has their own circumstances and can not abide the the standard rule of the "10%" savings rate. You have to evaluate your current situation and understand that it is necessary to take out that loan, or use your whole paycheck to eat. But don't forget that there is still an end goal to all of this, that this method is not just to keep you in your same position you are in. But to leverage your way out to financial freedom, I believe anyways.
Thank you for contributing Carlo. Pleased to read your thoughtful remarks.