[Tree0164]

I was looking at Dave Bach new book (author of the The Automatic Millionaire)

According to Bach, there is not one magic number that everybody should have saved. Instead, the amount that is right for you depends on your income. The basic rule of thumb here is something that Bach calls the 1-5-10 plan.

At age 30, you should have one year's worth of income saved. This amount does not include any home equity that you might have. So, if you are 30 and making $40,000 a year right now, you should have $40,000 in savings.

At age 40, you should have five years worth of annual income saved (or, five times your annual income saved).

At age 50, you should have 10 years worth of income saved.