Ben Franklin wrote, “A penny saved is a penny earned”. Quite true, but another perspective might be that “A dollar saved, takes you three steps toward financial independence”.

Why is that? Here’s how I count the three ways: First, a dollar saved is a dollar you can spend tomorrow; second, it is a dollar that will grow and give you more dollars in the future; and third, by not spending on things you don’t really need, you keep your lifestyle cost one dollar less in the future. That’s it – three dollars for every one saved.

The last point assumes that our future lifestyle has some relationship with what we spend today.   Retirement experts suggest that we plan for 70-80% of our pre-retirement expenses in retirement.  More if you want to splurge on Continue reading “Triple Play Formula For Inflating Your Nest Egg”