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[quote=Anonymous]I am a big fan of Charles Farrell's "Your Money Ratios" Book.  You can get it on ebay or at your local library.  Gives good, easy to understand benchmarks to aim for, and explains how all of your financial decisions are inter-related (in a simple way).

Here is a quick synopsis:

"Capital-to-Income Ratio
Called the CIR, this ratio looks at how much savings you have compared to how much money you make. The ratio also factors in your age. This is based on the theory that the longer you’ve been in the workforce, the more money you should have saved.

The book contains charts to look up the ideal CIR based on your age. The goal? To have saved 12 times your income by retirement age of 65. At 35, for example, your CIR should be 1.4. This means that for every $10,000 in income, you should have $14,000 saved."

So, if your income is $$100K, you should have roughly $140,000 saved in order to be on track for the "gold standard."  If you aren't there, then he explains your options (silver standard, bronze standard, what changes you should make, what your other ratios should be, etc.).

But, just as a benchmark, you should have 1.4 times your salary saved at 35.  [/quote]

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