How many times have you not read articles about the exact or ideal amount you should be saving. There is a great variety of advice aimed at different ages, different people of different purchasing power in different countries. But what you must have realized is that these tips go to a multitude of different people.
They could hardly apply to you unless you have had to read countless articles until you can find one of which you speak exactly of your case.
In many articles, we have talked about how each case and situation of people is different. The same applies when talking about saving.
How much money should I save?
It is certainly a very vague question, whose answer is directly related. What do you want to save for?
There is a multitude of concepts for which you can save and be forewarned. All of that depends on what your goals and objectives are. These goals and goals are changing based on the stage of your life in which you are.
When you are in your 20’s you are hardly thinking about retirement, however, it is the ideal age to start saving for retirement. Your dreams and savings goals may perhaps be to go on vacation or buy a fashionable cell phone.
Define the concept of saving
If you do not have a concept or a saving reason in the future, you will realize the importance. For these cases could be defined as 10% of their income to savings. Only if saving is a vague concept.
Even when talking about emergency savings, there are endless possibilities, such as breakdowns in the home, in the car, health, lack of employment, etc. In the case of lack of employment is expected to have a financial mattress of 3 to 6 months to cover their responsibilities and basic needs without work in what finds a new one.
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When you reach your 30’s your priorities and goals are very different. Most likely, she is now looking to become independent from her parents’ home and start her heritage. Undoubtedly the retirement may already be among its concepts of saving that matter and as time goes on, 30% of your income can go to savings.
When the income is not the same month with the month it can hardly be sticking to an amount or percentage of savings. For these cases, it is indispensable to arm themselves with a budget and thus be able to manage what is earned in an appropriate way. Even so, 50% of their income should be destined to cover basic needs such as food, shelter, transportation and clothing. Since debt repayment can also be variable as income, any surplus should be earmarked for saving.
The savings account
It must be an account that gives you returns or at least protects your money against inflation. Another point to keep in mind is that money is not within your reach. If so, you can easily spend it.
Analyze your finances before imposing a percentage or amount to save.