It’s much simpler than you might think.
You’re saving “enough” if you’re satisfied with your current path.
My wife and I are 10 years from Financial Zen. I’m happy with that. She’s happy with that.
Therefore we’re saving “enough”.
But to stay on that path, we must vigilantly guard our savings-to-spending ratio.
Our current ratio is 1.14, meaning for every dollar we spend, we save $1.14.
If we want to stay on our current trajectory, we must keep that ratio intact.
As we make more money, we can increase our spending only as long as we also increase our savings to our ratio steady.
If we want to accelerate faster towards Financial Zen, then we would need to increase that ratio.
For instance, if we save $1.50 for every dollar we spend, then our Financial Zen Year drops from 10 to 8.5 years.
To accomplish that we can either make more money and limit the lifestyle creep OR we can reduce our spending now.
So are you saving “enough”?
I don’t know. You tell me.
