What percentage of your paycheck to you save?

Question

ive been working for 2 years, since i was 16. I make $9 an hour and havent saved anything. Now its about time for me to start.

Answer 1

Currently 5% of my check goes to 401k and 456k. Other than that I try to save $50-$100 of my net every month. That goes into my savings account. I also have Several CD's that I've opened over the years which provide me with a few extra thousand a year.

Every raise I get I increase my 401 and 456 by 1/2-1%

Answer 2

Save 10-20% of what you make. Just put it away in savings and forget about it. That's the easy part. Now for the slightly trickier part. Make your savings work harder for you. Banks pay next to nothing in interest n your savings. A credit union will pay a little more for your trouble. Now if you talk to an investment advisor at the credit union, they will show you how you can take your regular savings at maybe 1%, or so, and make maybe 5%, or so, and you'll be much happier with your savings account in the long run! I did this for years. Every paycheck I put a minimum of 10% away if not 20% and made sure it was always earning at least 5% interest...and I just bought my first house with a 25% down-payment! The point is, you are very smart to think about savings now! It really adds up over the years! Don't ever live to the extent of your means. Save a portion of your money, and live conservatively. Then when life's hiccups happen, you have some resources to deal with them. And when you need to buy a car or a house, you can! To get into a local credit union, check either with your employer, or if in school, check with them and ask if there is a credit union you can be a part of because you are a student. Another quick note: If your employer has any kind of 401K plan, then invest as much as they will match into the plan. If they don't have one, then visit your NEW credit union. Good luck and happy investing!

Answer 3

Yeah, you still live at home right? That means you dont have many expenses if at all.

Save, save, save, save, save. Especially while you are young. You should put at least $200/month in a retirement account.

You may laugh, but ask someone who knows why you should at your age. If you start saving 200/month for retirement, that money will collect interest in an account for a much longer time than if you start saving when you are 30, like most people do. You will be much, much richer in the long run if you start saving now.

Answer 4

The question is extra complicated then a magic answer. a million) how previous are you and how long do you have till now retirement? The longer you have till now retirement, the decrease a % you need to in all probability make a contribution to maintain an analogous usual of residing. while you're 50 and you desire to retire at sixty 5, you may ought to save a lot extra. 2) the place are you saving funds? while you're putting funds into low return decrease cost expenses money owed, bonds, CD's, whilst they're risk-free investments, their return is amazingly damaging. shares, mutual funds, ETF's and so on will carry bigger probability, yet a lot bigger ability returns. As a ordinary rule, you need to be a lot extra heavily weighted in shares and mutual fund type investments EARLY in existence (say your 20s and 30s) after which progressively rebalance and regulate your portfolio as you get closer and nearer to retirement into extra defend investments. remember, shares have traditionally outperformed ALL asset training over ANY 10 12 months quantity of time. So, shares are the superb long term thank you to outpace inflation and get the superb ROI. 3) what different components/investments do/will you have? in case you artwork for a employer or government with a 401-k plan, you may doubtlessly save much less of your man or woman funds in direction of retirement. Do you have a rich father/mom who will go away you their property? Do you very own actual property or a employer? whilst those issues are uncommon, they might factor into your determination making. frequently, I continuously propose saving as much as achieveable in a properly diverse investment portfolio. you need to ideally have an emergency fund in a coupon expenses account equivalent to 6 months expenses. in case you have a 401k type plan with the aid of artwork, i could be attempting to make a contribution the optimal, or a minimum of the quantity that your corporation suits considering is unfastened funds. After that, it relies upon on your different objectives.

Answer 5

I try to save 30% of my weekly income. Unfortunately if you don't make a whole lot it's not always that easy. If you only make $9 an hour you'll do good to put back 10%.

Answer 6

I can answer this one. I am 55 years old. Take your money to the bank every week and go to the teller and tell her you want a $50.00 I-bond. If you buy one a week in 20 years you can cash in one a week for $20,000 a week. Tell me that is not saving. The government puts $50.00 to your $50.00 each week. Good luck and how do I know this that is what I do every week for the last 20 years.

Answer 7

Clip coupons. It can add up. I used to save more of my paycheck when Clinton was President. Now that we have Bush, I save a lot less.

Answer 8

split it up and save what u can afford, take out some 4 necesities, bills, and a small ammout 4 recreation and put the rest in savings.

Answer 9

i save zero of my paycheck. if i manage to save anything i spend it the next month

Answer 10

10% of the take home.