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The 60% savings rule.
Lifehacker reports on the 60% savings rule:
The editor in chief of MSN Money, Richard Jenkins, says the best way for him to come out ahead at the end of the month financially is to only spend 60% of his income.Socking away 40% of your income into retirement and savings seems like a HUGE chunk of change to miss out on in your regular spending. But Jenkins says if the 60% rule seems impossible, you’re probably in a lifestyle situation that needs to change.
I'm not sure if he means before-tax or after-tax income. I currently live in Canada taxes eat up about 50% of your annual income. If I save 40% of my income I'll have about 10% left to actually live on. I'm definitely in a lifestyle situation that needs to change.
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