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Old 05-26-2008, 07:41 PM
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MonkeyMama MonkeyMama is offline
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I like David Marotta's advice on the subject:

http://www.savingadvice.com/blog/200...net-worth.html

Which would say, at 40, you should have 3-4 years of annual "expenses" saved up.

I like thinking in savings in terms of "annual expenses" instead of "annual income."

Likewise, if you are ahead or behind, it gives you a good guideline of a direction to move towards.

Of course I think this is rather vague as it focuses more on retirement savings than anything else. Refers to savings/investments.

(I think it is largely similar to the MMND formula, except it accounts for you would have way less early on and way more later on...)
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