What percentage of any money that I recieve should I save?

Question

I'm 19 years old, working and going to school, and making enough money to spend on my girlfriend and I, but at the same time save, what would someone reccommend me to do? I want to become a financially responsible and stable guy. I look up to people like that. =)

Im adding on to this....hahah thanks man, I guess I can be pretty smart at times. Yeah once I set a rate I'm pretty good at keeping it, but for some reason 10 percent seems kind of low...

What do you mean prioritize? What do you mean "PAY YOURSELF"?

BTW I turned 19 3 days ago =)

Answer 1

As a general rule, you want to save as much as you can! If you can afford to sock away 50%, then do it. If all you can afford is 5%, then do that. The KEY is that saving anything is better than saving nothing.

And at 19, you're very luck that you can afford to save anything because there are plenty of others who are in hock up to their eyeballs. For that, I commend you!

However, if you've got student loans, don't forget that you'll have to budget and save now for those bills, because you don't want to be caught years from now being unable to repay them.

Answer 2

Sounds like you already tried saving 10%, and that was too easy. If you are there now, up it to 20% and see how well that works for you. If you are still finding it easy, up it every couple of months till things feel a little tight, but you are still able to make all your bills, have some fun, and pay for your living expenses. There really is no set maximum on the ammount you should save. Save as much as you can now to make you as comfortable as possible in the future.

As for what to do with the money, keep reading. There are a lot of suggestions on these boards, as well as on Yahoo and MSN Finance. You can also look up more information at a local Book Store. Personally I would suggest looking into getting a house if you plan on being in the same area for a while. Also look into opening up a ROTH IRA if you are making less than 90 grand a year. Invest in a 401k if your job provides one, and max out your contributions (15k this year).

Answer 3

The 49er had a great idea about the 10%, but from reading your statement I would start at the 15% level. Something like a savings account until you have saved about six months of what you earn per month.

After that you can start seperating your money into money market accounts, with a little going into stocks,bonds and mutual funds. This system worked well for me over the years. At your age you can earn it back if you lose it. Place 1/4 of your savings into risky stuff almost futures or something in that category. 1/4 into something less risky stocks or company stock, 1/4 into something even less riskier like govenrment bonds, municipal bonds, city bonds something with a steady stream of interest and almost guaranteed and 1/4 into something very safe almost liquid. Divide your savings up each month into each account or as you go you might want to add additional accounts.

The way I handled my pay raises were I divided my pay raise into 2. I saved 1/2 and kept half for myself that way each get a pay raise. Do this with each pay raise.

You must invest a portion into real estate so select a real estate investment vehicle you think you would like and invest in it. there are foreclosures, team up with someone, you supply the funds let them do the work of finding them, all the paper work etc, then there are 2nd trust deeds where you become the bank and lend your money which is secured by the property you place the 2nd trust deed on. You can purchase income property, looking in the newspapers for those that want quick sales. have to go, Owner will carry, must sell, get the bargins. You may also purchase forecloures for rental or place back on the market for sale. There are books out for each of the above mentioned investments.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

wow- if you are 19 and asking this, you are some smart kid, kiddo! My kids are only 2 1/2- I wonder if they will grow up as responsible as you?
Me, when I was 19, was mostly concerned with getting laid and drinking beer- I worked my way through Long Beach State and finished college, however.
Just remember the golden rule to saving- "PAY YOURSELF FIRST". I recommend you start out with 10% of your income and see how that sits. If you do that no problem for 6 months or so, then consider upping it to 15%. But remember, once you set your rate, you stick to it and always pay yourself first!
And don't forget to have lots of fun!

Answer 5

hi, i'm fourteen too. except im a lady and that i artwork for my pocket money. lol, do jobs around the homestead, get a paper round., actual artwork on your money. Get a 20p-£3 for each pastime you do- i.e hoovering 2 rooms is 50p. hoovering the completed homestead is a pound. washing up after each and absolutely everyone has eaten is a pound- yet washing up after breakfast or w/e is 20p. paper rounds are a competent income of money although- my acquaintances receives a fee £12-£15 a week. or merely ask your mum for a demanding and quickly allowance- £5 a week in case you dont do any jobs, and £10 a week in case you do. wish this facilitates XD if this doesnt artwork.. rob a monetary corporation or some thing. that turned right into a comic tale btw :D

Answer 6

At about your age the the old idea was 1/3 on accomodation, 1/3 on living 1/3 on saving. I worked for me, and still does!

Answer 7

save 10 to 20% of the money u recieve so that u can be financially stable

Answer 8

Earmark 10% of your money and prioritize the remaining 90%

Answer 9

50% you never know when the other 1/2 will come in handy!

Answer 10

no less than 20-30 % even is its not alot. u will not regret it in the end