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How much Should I Be Saving?

FJ1385317 J10 HOW MUCH SHOULD I BE saving || Two of the most important financial questions you should ask yourself are Q: How much money should I be saving? Q : When should I start? As much as A A As soon as you can. you can. For those who need a more specific savings target to aim for, financial experts recommend the following: Good Better Best 10% 15% 20% of your income of your income of your income What to save for F53349619E To make it easier to build a nest egg, divide your savings into 3 categories: MAJOR EXPENSES This includes cars, appliances, homes, vacations – even weddings. Instead of saving a percentage each month, determine how much the purchase will cost and when you want to buy it. Then figure out how much you need to put aside each month. RAINY DAY FUND RETIREMENT For a comfortable retirement, plan on saving at least 15% of every paycheck. Start young, and put the money away without fail. Things happen when you least expect them. Job layoffs. Illness or disability. Accidents. Save enough to cover 3 to 9 months worth of living expenses. Apply 50/30/20 Rule the 50% of your income 30% can be applied should go toward necessities to discretionary spending 20% should go directly into savings Create a Budget If saving 20% of your income seems unrealistic, try the following: Having a written guideline to follow can provide motivation for saving and make it easier to identify unnecessary spending. Pay Yourself First Have your employer automatically deduct the money from your paycheck and deposit it straight into your savings and/or retirement account. Stick to the Plan Make saving money mandatory rather than discretionary. Avoid dipping into your savings except in true emergencies. If you can't meet the 20% recommendation, don't get discouraged. Instead, put away what you can for now. Then look for ways to cut your expenses and/or increase your savings as you begin earning more money. Sources: LAMISSION http://startingout.tiaa-cref.org/how-much-of-my-income-should-i-save-every-month/ NCUA http://money.cnn.com/retirement/guide/basics_basics.moneymag/index7.htm FEDERAL CREDIT UNION LENDER http://www.bankrate.com/finance/savings/20-savings-mistakes-that-people-make-1.aspx Information provided for educational purposes only. Please consult your personal financial advisor for individualized advice.

How much Should I Be Saving?

shared by MissionFed on Aug 10
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Why does saving money seem to be such a challenge? Life, that’s why. Whether we want them to or not, things happen and our savings priorities have a tendency to shift. A car breaks down, your child ...

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