What percent of your income should you save each month?
Do you have a savings? What's a good percent to put away each month, assuming you can afford to start saving money?
I think that the "experts" recommend 10%, but I found that if I saved 50%, it gave me a lot of flexibility in how I spent my time. I think it depends on your income and the amount of your fixed costs, but increasing your income and reducing your costs, so-called fixed and especially the frivolous things, would allow you to save more. You do have to be careful to not go overboard and should allow yourself to have a splurge now and then. My splurges tend to be small dollar amounts though.
Marcy.....After I pay the bills.....mortgage, utilities, car pmt, insurances, credit cards, etc....fill the tank with gas, buy some groceries and incidentals, there's usually a birthday, anniversary, graduation, wedding, baby shower or holiday of some sort to recognize......but I always make sure my last 35 cents goes into the coffee can!! It's very important to me, so I'm religious about it! Just this year I've been able to save $11.56. This is down a little from last year but there's still time for me to catch up.
Hoping by the end of the year to be able to have as much as 20 bucks.
Looking forward to my vacation in Hawaii by my 97th. birthday.
I hear you on that, Paula! You're lucky to have that 35 cents left! We can not even afford to buy gifts for anyone anymore, including the grandkids, and that really hurts our feelings.
Believe me Dzy....I simply cannot "spoil" the kids....but we shouldn't do that anyway, right? 12 grandchildren, 1 great grandchild.....4 sons + 4 DILS.......17 separate special occasions (JUST birthdays!!) LOL...oh yeah.....Oh NO!
Paula, you are a RIOT! My best friend has 14 grandchildren and a few great grands. WOW! I send my grandkids a card and a $2 bill on the holidays except Christmas & birthdays. They LOVE the $2 bills1
Sparklea.....I love 2 dollar bills too!.....My birthday is April 10th! You missed it for this year, but it's OK if you send me TWO 2 dollar bills next year!!
Naturally, it depends on how much money you make. If you have a minimum-wage job and do not live near your parents, or have a spouse and children you are not going to save much.
When I was working at my last job for 23 years, I increased my savings as my salary increased by contributing more to m 401K.
I started with five percent and was up to 15 percent the last few years. With the aid of a good broker, I could invest it well.
So my short answer is to increase your savings as your income improves. One person I know skips every other pay raise and deposits the money in savings--a workable approach.
The amount is important, but having a consistent plan for savings is also important. Hit or miss savings will not provide security. A plan to save what you can afford, even it it means skipping the new car one year, then save that amount regularly.
Finally, I have seen a lot of retirement predictions, and they always assume that you are going to start spending the money saved to finance your retirement. Your plan should be to use the money earned as interest and dividends to finance your retirement and to leave the corpus or base amount intact so it can continue to earn income. Even being unemployed for several yeas, this has been the approach I have used. We are not going to Paris, but money is not the reason. Other unexpected circumstances make that impossible.
In Ireland at the moment and for the foreseeable future being able to save any amount is but a dream, at the end of the month there is nothing left, Lee
What you can afford. Usually it is 5-10%, I do have 15% of my paycheck put in my 401K (pre-tax). But even if you can't afford a percentage, try to put $5.00 each time you get paid. Then try to build up your savings until you get three months of living expenses saved up, just in case something happens and you are unable to work for a while. Then if you get a monthly bill paid off, keep paying on it but not to a bank but to yourself by putting it into your savings.
All our hse expenses, education are paid by hubby. No idea how much he put aside.
by MissJamieD 5 years ago
Ok, I live in Minnesota and the law says you must have auto insurance to be driving on the road. If you don't have it, you can/will be charged a fine and possibly jail time. I do understand how important it is to have insurance. If you're in an accident, it helps pay the victims medical bills, etc....
by Carolyn Dahl 13 months ago
How do you deal with debt?There is so much advice out there on how to get out of debt or deal with debt, are there any strategies that you have tried in your own life? Have they been successful?
by Shil1978 5 years ago
How to Say No to a Friend Asking to Borrow Money?
by Abhaque Supanjang 7 years ago
How do you spend your income every month ?Can you save your money for your future time, give some for your patents, give away for charity or you only can spend the money for your monthly (daily) needs ?
by Uneducated opinio 6 years ago
Try and refrain from using a credit card for any purchases that are not a necessity. Things want should he paid in full to avoid getting stuck in ungodly amounts of debts. I learned this lesson a little late but I did learn it ha. Try to be smart with your money. Also try to look for coupons online...
by first million 10 years ago
is anyone able save money?
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|