Is 10 to 15 percent of your monthly income a good amount to save?

Answer 1

Congratulations; you are one of the few askers here who actually might get it.

I have been saving at least 10% of my PRETAX!!!! income and investing it in mutual funds/stocks since I had my first part time job at 16yo. If I generate an average rate of return, I will be able to retire in my mid 50s while all those folks driving Landrovers and living in McMansions paying off debt, will be working till they die.

I recommend you get the book "The Wealthy Barber" by Chilton

Also recommend you listen check out this web site and listen to his radio show if you get a chance:

http://www.daveramsey.com/

Good luck

Answer 2

I want to congratulate you on your long-term vision of what you will need down the road. A lot depends on your age, but either way, you are saving and that is the important thing. 10-15 percent is excellent. The important thing is to save as much as you can while still paying bills and allowing yourself a little bit of fun too. I work in banking and every day I see people who didn't plan for their futures, spending their money on new cars, bigger houses, and things that are nice but not necessary. You'll be enjoying retirement instead of worrying about how to pay for your house long before our non-saving friends are. Again, congrats.

Answer 3

Hey Grease, that is a good start. If you have a lot of bills to pay in order to live, then that amount is great. If you live at home and have no responsibilities then you can try to up the anny and put in a little more.

In life, we always make the mistake of not paying ourselves first. Do you have a specific amount that you are saving by a certain time? If so, that determines how much % you can afford to save.

Answer 4

It's good (because saving anything, especially in this day and age is advisable), but 25% to 30% would be better. I've been a teacher for 33 years, and I save at least that much each month, in addition to the regular teacher retirement contributions that are taken out of my check every payday. Always pay yourself first, invest in savings programs that aren't risky (I say the stock market is not for the "little people" like me), and make it a game. I try to see how LITTLE I can live on each month and save as
much as I can. You'd be surprised how much "stuff" you don't really need. Of course, the older you get, the less you need, but it certainly feels good to get rid of all the trappings of "junk" in my life. Also, don't go into debt, don't use credit cards, and if you don't have the money to pay for something in cash, WAIT. Save for it. The only times I've gone into debt was for a car (24 months) and my home (and my husband and I paid off our first home in 6 years and we paid off this second home, our final home, in 4 years. Believe me, having money in the bank, having no debt, being able to retire whenever I get the urge,having money set aside for emergencies, and being able to live a very comfortable life while relying on NO ONE to help me--that makes me sleep VERY WELL every night.

Answer 5

Considering the average savings rate of the last year was -1%, I'd say you are in good shape. Just keep a good asset mix so your risk is at a minimum and you are on your way to retirement or whatever else you are saving for.

Answer 6

If you are saving 10% of your monthly income every month thats mean that you are saving 1 month salary in 10 months, 1.2 months salary in a year 6 months salary in 5 years and 12 month salary in a decade. what do you think is it enough for you that you are saving only 1 year salary in ten years.

Answer 7

Its a great amount, infact, my family has always told me to save 12 percent. Piece by piece, you'll be happy on what you have saved in the past year or so.

Answer 8

25% if you can pull it off. If you cant then youve got to many bills. Try to cut them down to half of your monthly income. That leaves half, 25% of it for savings,25% for liesure. In just one year you will be amazed.

Answer 9

Yes, but it depends on how many years you are near your retirement. If you are in you 20s, that is good. But if you are in your late 40s, that is not enough. It also depends on how you are investing your money, fixed or mutual funds or stocks.

Please take a look at the MSN retirement expense calculator to find out how much you need to save.

http://moneycentral.msn.com/investor/calcs/n_retireq/main.asp

Good luck!

Answer 10

I've heard your always supposed to have 3months of bills saved, in case a rainy day comes. I consider what your putting back to be really good.