We are often told that we should allocate some of our income to savings. Some financial experts even come up with how much that allocation should be, and arbitrary numbers like 10% or 15% are recommended.

I have to say I don’t really understand this. How can they create a general rule about savings when all of us have a unique financial situation. And unless you know exactly what you are saving for, how can you decide how much to save? For all you know, you may just be better off spending some of that money now instead of keeping it for future. [Read more…]