How Much Money Should You Save Each Month?
How much money should you save each month? The simple answer is, as much as you can. Everyone makes a different amount each month. They also have different monthly financial obligations. It is important to realize that one dollar amount is not going to work for everyone. Here are some basic guidelines you should follow when determining how much you should save each month.
The 10 Percent Rule:
The standard that many experts set is at least 10 percent of your income. This is a good starting point. It is an easy way to start because it is a set amount of money each month. It should not be that difficult to save 10 percent of your income, but you may want to increase this amount over time. Eventually, you can work up to 20 or even 30 percent to increase your savings and plan for your future.
Beyond Retirement Savings:
It is important that you are saving in addition to the money you are putting in your retirement savings account. If you do not, you will never save up money for an emergency fund or for a down payment on your home. Additionally, if you want to retire early, you will need to have savings that you can live on that is separate from your retirement accounts, which you cannot begin accessing without a penalty until you are 59½ years old. It is important that you make saving a priority for both retirement and other goals.
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The 10 Percent Rule:
The standard that many experts set is at least 10 percent of your income. This is a good starting point. It is an easy way to start because it is a set amount of money each month. It should not be that difficult to save 10 percent of your income, but you may want to increase this amount over time. Eventually, you can work up to 20 or even 30 percent to increase your savings and plan for your future.
Beyond Retirement Savings:
It is important that you are saving in addition to the money you are putting in your retirement savings account. If you do not, you will never save up money for an emergency fund or for a down payment on your home. Additionally, if you want to retire early, you will need to have savings that you can live on that is separate from your retirement accounts, which you cannot begin accessing without a penalty until you are 59½ years old. It is important that you make saving a priority for both retirement and other goals.
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Good read
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