jump to last post 1-5 of 5 discussions (9 posts)

How much of your income should be saved?

  1. pinappu profile image82
    pinappuposted 5 years ago

    How much of your income should be saved?

    What percentage of your annual income should be saved for future? What is your opinion?

  2. MickS profile image71
    MickSposted 5 years ago

    It has been said that your income should be split into quarters, two for your living, one for charity, and one for saving.

    1. pinappu profile image82
      pinappuposted 5 years agoin reply to this

      25% for charity! It sounds noble but is it practical?

  3. ThompsonPen profile image79
    ThompsonPenposted 5 years ago

    I wish I had enough to give to charity, MickS! That's an excellent idea. I've always been told 10%, though I will do that, or $75 per pay check, depending on which is highest that pay check. It means $150 goes into savings each month, which is the best system I've come up with so far.
    I also find that having multiple bank accounts is helpful. I have my checking and two savings accounts. The Checking is the money I'm allowed to spend, I put all my bill money into one savings account and then the other I put my savings into. It has been very successful so far. I never go over and am never short on bills, unless I don't estimate enough for the power bill, but that's a whole rant on its own smile

  4. loyalsudz profile image60
    loyalsudzposted 5 years ago

    https://usercontent1.hubstatic.com/7365342_f260.jpg

    The 50/30/20 Rule is not a bad rule to follow when it comes to spending and saving.  The rule only takes into account your net income after taxes.  50% is must have necessities like the mortgage, tuition and minimum payments on loans for transportation,  food and utilities.  30% is for wants like vacation, entertainment, movies.  And 20% is for credit card debt and savings.  The less debt you have the more you can save.  The problem is that must haves typically exceed the 50% mark for most people and it takes sometimes a year to 2 years to live like this.   Saving should start regardless of if you are 10% or 15% mark because every little bit counts.  Just stick with it!

    1. ThompsonPen profile image79
      ThompsonPenposted 5 years agoin reply to this

      That's really good advice!

    2. pinappu profile image82
      pinappuposted 5 years agoin reply to this

      Your advice seems good.

    3. loyalsudz profile image60
      loyalsudzposted 5 years agoin reply to this

      Thanks Pen and Pinappu!

  5. LandmarkWealth profile image79
    LandmarkWealthposted 5 years ago

    In terms of retirement planning, 10 percent of your gross income is the target that is generally a healthy starting point.  Yet the more the better.

 
working