How much should I be saving? I'm 23 years old I make $2300 a month. I live at home. At of that money, how much should I be saving every month?
What is a good percentage to be saving.
2006-11-12 05:00:39 · 6 answers · asked by bijan816 2 in Business & Finance ➔ Personal Finance
20% parents
30% save
30% bills
20% fun
2006-11-12 08:37:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
At 23 and living at home you should be saving 40% of your net (ie 40% of your paycheck). Another 20% should be going to your parents for staying in their home. The remaining 40% you can use for your bills and fun.
Edit: Kitty, I gave you a thumbs up. Not often I come across someone who is more agressive at encouraging young people to save. The only problem with only spending 10% is this kid is going to have so little fun in life that he wonders why he is bothering to work.
But the idea of saving early and saving a lot is a powerful one. Instead of getting to age 45 and hitting the message boards wondering if you should consolidate your out of control debt you can ask a question about whether or not to buy that vacation home.
The power of compounding along with the power of living beneath your means results in a worry free retirement while your less savvy friends are applying for a greeters job at WalMart at age 70.
2006-11-12 13:03:08 · answer #2 · answered by Phil O' Brien 3 · 1⤊ 0⤋
Hi,
as a rule of thumb you should be saving at least 10% of your income for long-term savings, and 10% for short term goals such as vacations.
If you have more money to save, go ahead and save more! It's a joy to see this account grow and you might well live from the interests or dividends in some years.
2006-11-12 13:03:19 · answer #3 · answered by chapinero 4 · 0⤊ 0⤋
I would save as much as possible without being miserly and as you move on in life save a minimum of 10 to 20%. If you can't save at least 10%, you are living too high and must lower your standard of living.
2006-11-12 19:14:33 · answer #4 · answered by rsbdkaise 3 · 0⤊ 0⤋
If you want my advice, go to see an agent from Edward Jones. They will help you make a plan for saving that starts to build a portfolio for you (putting your savings in places that are safe and grow more interest for you). You sound like a serious young person so please check them out on line.
2006-11-12 13:06:29 · answer #5 · answered by Isis 7 · 0⤊ 1⤋
20% should go to your parents.
70% should go to saving for your own home.
10% for spending.
Its not how much you make but how much YOU KEEP !
2006-11-12 13:33:35 · answer #6 · answered by Kitty 6 · 1⤊ 0⤋