The prevalent message when it comes to wealth building or savings have always been: Pay yourself first, set aside X% of your income before you spend. In Singapore, it is how this CPF system works as well. Mandatory savings.

Its easy to proliferate the message because its straight forward.

I chance upon a financial planning article from Michael Kitces that would make good reading for readers interested in this subject, whether you are fine tuning your wealth building or helping friends.

Don’t Save 10% of Income, Spend (Just) 50% of Every Raise and Systematically Save More Tomorrow!

The idea is interesting. And one linkage that have escaped me and perhaps some of you.

You essentially have Wealth Building be a part of a particular slice of your income. Do that before spending on anything else.

Save 0% of your income but only spend 50% of your pay raise kCgpiN0

The problem here is that this Wealth Building is a fixed percentage that usually is