My net takehome pay is $2700 a month. How much should I be putting into savings?

Question

I put 10% of my income into a 403B. I am having $150 every 2 weeks put into a savings account. I do not have a house payment, its already paid for, but needs some repairs.
I am thinking about putting $200 every 2 weeks into savings and asking them to increase my contribution to my 403B to 15%.
How do you know how much to put where?

Answer 1

Save as much as you can. It sounds like you are on a great start and should start checking out a ROTH IRA plan. This is a great retirement savings vehicle.

Answer 2

I write out my budget every month. I have kids and everything can change so fast in my house that I move funds around all the time. Like if my husband does more hours in the month I keep my budget to his normal work weeks and I take the extra and put it in the savings like I never had it in the first place. I have had to use my saving during the major flood in Washington and Moved with it and thank god I had it cause we would have never moved to Arizona at all. I also had to use it for trips and other things that couldn't wait like a family member got really ill or my sister having her baby early. I Would figure in all what you pay out and how much you spend each month on what rounding up cause changes in heating and cooling you house changes too. So once you do that see what you have left over and work from there I know if your house needs repair I would hold off on putting your 403B to 15% tell after the repairs are done. Then make your move on the 403B then. Fixing your home is really important the longer you wait the worse it gets and you will be out of a home. So look at it that way.

Answer 3

Well, you just found out about why you need the money (repairs) you should have some savings account for that purpose (emergency). Enough to replace items maybe water heater, car transmission, refrigerator, etc.
Yes, Savings accounts have a very small interest, but are liquidable asset.
You may also look at that 5% in another account other than your 403B, maybe a Roth IRA.
Talk to a certified financial consultant, for a better performance estimate, they can do that for you.
If it is at no cost. Write down your goals so that you have a clear direction at what you need, and how to get there.

Answer 4

If you are talking about a savings account with the super low interest rates like 1-4% you should quit doing that, that's just a waste. You are saving enough in dollar figures, you need to put it into a better place though. Get that savings account money into the stock market, in mutual funds.

Answer 5

Get this book by Robert Kiyosaki...
"Rich Dad Poor Dad"

Answer 6

You are doing great.Just put your savings into a money market mutual fund.They earn 5% or more.