Signs to Adjust Your Savings Rate and Financial Planning

Financial independence requires ongoing assessment and adjustment of savings rates and lifestyle choices.

### Signs to Adjust Your Savings Rate: Balancing Financial Independence and Lifestyle
* 💭 Troy's question revolves around understanding when it's appropriate to **reduce one's savings rate**, considering factors like **age**, **accumulation level**, and **confidence in retirement plans**.
* 📈 Financial experts suggest that young savers, particularly those in their 20s, should be cautious about **easing their savings too soon**, as they may not have built **enough financial traction yet**.
* The concept of "**Know Your Number**" is emphasized, urging individuals to assess whether they are **ahead, behind, or on track** with their savings goals.
* 🏦 Signs that one might be overdoing savings include experiencing **marital strife due to excessive frugality** or feeling like a "**Financial Miser**" rather than a "**Financial Mutant**."
* 💸 It's crucial to do the math and homework to understand your financial situation, ensuring that you maintain a balance between **saving and enjoying life**.
* ⚖ The text warns against prematurely reducing savings rates, as **excess funds often lead to increased consumption** rather than prudent investments.
* 🔍 Active participation in managing your financial life is essential; individuals should **regularly reassess their savings rates** and adjust them in response to **life changes and financial growth**.

[Music] okay, Troy's question is up next. He says, What are the signs that one can let up on one's saving rate? Savings rate. Is it age, accumulation level, confidence about your retirement number? Maybe you've hit FIRE, Coast, quote-unquote. I'd love to let up a little in our life at some point. How should he think about this? You know, Bri, this is somewhat of a specialty of yours, and I'd be curious 'cause Troy's question was, Hey, what are some signs that I could let up? And I think it'd be interesting to hear you answer, What are some signs that I could? And then, What are some signs that I should? Because those are two different things. What would you say to that? How are the conversations? Well, I want to give the precursor because I know a lot of you are financial mutants, and you're catching this at a young age, which is an awesome thing. And you guys, by the way, are all... I'm always amazed when you share what you make, what you're

saving, but I do want to caution all my people, all my folks that are in your 20s, you know, you billionaires of time, you know, even if you have a great income and a great savings rate, it's kind of hard to take your foot off of what you're doing because you just haven't had enough time for traction to catch hold, you know, 'cause remember, we're trying to get you to that bowling point of trying to get to $100,000 as fast as you possibly can, but I want to go beyond that 'cause I think that's where Troy is trying to get us, but I did want, oh my God, is this the first time we've previewed it live? No, first time I've seen it though, it's awesome, it shows up here, but so let's go beyond the 20s somethings who are crushing it, but I just don't want to have that overconfidence. I want to focus on, and by the way, this is such a

major question that we actually created a course um and a tool called know your number um because you need to what I'm going to share with you is you need to know are you ahead of the curve are you behind the curve or were you right where you need to be and I like how Bose set that up is because it's not uncommon for US Financial mutants to love what when you see your money starting to save more than you can save and it's starting to work harder than you can with your back your your brain and your hands you you you can do too much to the point that your family starts going why are we still piling all six of us in one hotel room why are we driving around in a 15-year-old car that you know smokes and I have to carry around a CT of oil to pour in there why am I turning in receipts after meal why are you making me track every receipt and and give you an accounting of this it's starting to cause some marital Strife the these

things are all symptoms that you might have taken Financial mutant into Financial Miser. So that's why I will tell you, you've got to do the math, you've got to do the homework. I give you all the steps, but there is too much, and it's when you start getting into that Miser territory without a doubt. Please go do know your number so that you can figure out exactly where you are. But also, I want to caution, I do want you to feel like get that money in there, bazzle your basic life so that you're not celebrating too early, because I often do worry when people are looking for the exits on their saving and their automatic investment behavior too soon. Where does that excess money go to? It usually goes into consumption, it goes into lifestyle. And if you go into retirement or what you perceive as Financial Independence, and you weren't realistic about your assumptions and your spending, your burn rate, you can get yourself in a pickle of a situation. So there is a delicate balance, and that's

why we try to give you the tools so that you could actually navigate this well. So, you have to do the homework to know where you are on the path, and you have to be realistic and honest with yourself. I think you started this at the very beginning. You said, Hey, if you're someone who's in your 20s and you've done the math of, 'Oh man, I've saved up X number of dollars,' and if I drop my savings rate to 10%, by the time I get to 65, I would be golden. That may be a little premature; you may be making that assessment too early. There are other ways that you can enjoy the here and now without making, without allowing your savings to be sacrificed. Am I hearing you and understanding that correctly? Yeah, and I know, and this might not be Troy, but it might be some of our other audience members. You read Millionaire Mission, you watch our content, and you're on fire about, you know, building wealth, but then, you know, you fund your Roth, you set up

an automatic monthly investment. You know you're doing 6% to your 401k or whatever at the time, but then you don't look at it again for 5 years, 10 years, you know, and meanwhile, you get promotions, you get pay raises. Make sure you're taking an active role in your financial life, 'cause I don't want this to be you were super excited at 24 years of age, you fast forward to 30, and you never changed your savings rate, you never updated your life. You need to be an active participant in your future success. It's great

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Signs that you can consider letting up on your saving rate include reaching a certain age, accumulating a significant level of savings, and gaining confidence about your retirement number.

Hitting financial independence (FIRE) or reaching a "coast" phase can also be indicators.

However, it's important to be cautious, especially for those in their 20s, as it may be too early to take your foot off the gas.

Understanding your financial position is crucial to avoid going from a "Financial Mutant" to a "Financial Miser.

" The course and tool, "Know Your Number," aim to help individuals assess whether they are ahead, behind, or on track with their finances.

It's important to manage excess money wisely and avoid letting it lead to increased consumption and lifestyle changes that could jeopardize long-term financial independence.

Navigating Financial Planning in Your 20s

It's important to be realistic and honest with yourself about your financial path.

Making long-term savings assessments too early may be premature.

There are ways to enjoy the present without sacrificing your savings for the future.

The Importance of Active Financial Management

Automatic monthly investments are helpful, but it's crucial to actively manage your financial life.

Regularly updating your savings rate and adjusting for promotions and pay raises is essential for long-term success.

Being an active participant in your financial journey can lead to better outcomes and prevent stagnation.