How do you know where you are on what I call the Save-Invest continuum? Use this simple calculation as a guide. First, figure out how much you expect to comfortably save in the next year. I say “comfortably” because this should be something that you can achieve with ease. We will call this your expected savings. For example, if you expect to save $1,000 a month, your expected savings should be $12,000 a year. Next, determine how much you expect your investments to grow in the next year (in dollar terms). For example, if you have $10,000 in investable assets and you expect them to grow by 10%,
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