I was raised being told to put 20% into savings, but that was with a normal job. My current job pays for housing, food, gym, transportation, and much more. I’m just trying to figure out how much I should put into savings now. Any advice would be great.
I would save as much as possible. If you can max out your retirement contributions, that’s a great start. Just think long term.
How much do you have left over after paying your bills? That might help figure out what you can save.
Harper said:
How much do you have left over after paying your bills? That might help figure out what you can save.
About $2,000 a month after putting some into retirement.
Harper said:
How much do you have left over after paying your bills? That might help figure out what you can save.
About $2,000 a month after putting some into retirement.
$2000 is a good amount. Depending on your goals, you could save a good chunk of that.
Are you getting paid less or about the same as before? If it’s the same, calculate how much you’d spend on housing, food, etc., and consider putting all of that into savings or investments. It can save you money in the future.
@Westley
I think it’s about the same. That’s a good point though, I should figure out my expenses better.
You should save enough to fund your goals. Think about what you want your money to do for you. Whether it’s taking vacations, buying a home, or retiring early, having a good emergency fund and limiting debts is important.
@Frankie
What do you mean by funding your goals? Like specific amounts for each?
Harper said:
@Frankie
What do you mean by funding your goals? Like specific amounts for each?
Exactly. If you want to save for a vacation, figure out how much that will cost and plan for it. It’s all about knowing what you want and how to get there.