Looking for percentage of salary per year would be resaonable amount we should be saving. We are married with 2 children and the usual bills as everyone else. Trying to save but tough as everyone knows.
2007-05-21 09:22:19 · 7 answers · asked by Tony E 1 in Business & Finance ➔ Personal Finance
I think 10% is a reasonable goal, but you don't have to start at that level. Your priorities should be:
1) Emergency fund of at least six months' living expenses.
2) Save enough in your 401(k) to get the full company match.
3) Max out a Roth IRA
4) Save for your children's college education
5) Save extra beyond that just to build wealth
If you can only save 5% of your salary now, start there. But here's the most important advice: Save every raise you get from now on. If you and your family living fine on your current salary, then you do not need to increase your standard of living just because you get a raise. Save that money instead. I started doing that years ago, and I got to the point where I was saving over 50% of my gross pay every year. It really works, and it's painless.
2007-05-21 10:31:52 · answer #1 · answered by Kathryn 6 · 0⤊ 0⤋
It depends what your goals are. Maxing out any 401K you have at work is the first goal. If your company doesn't provide a 401K, then open an IRA and max that out.
If you can still save something, with kids, you should open a fund for their college tuition.
If you can't max out the 401K, then put as much as you possibly can into it. Having contributions deducted automatically from your salary/bank really helps - you get so you forget the money is going out of the account.
2007-05-21 17:56:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
alot of articles preach that you should save 10% of your income and that is a good number for most people, but it really depends on your age, how much you already have saved, if you have any other income sources, what your goals are, how long of a time horizon you have to save for these goals (when you want to retire, buy a home, etc.)
A person in their 20's will need to save alot less to meet their investment goals in the future than a person in their 40s or 50s trying to save for retirement in 10 - 15 years if they have little or no savings.
2007-05-21 16:33:46 · answer #3 · answered by Ashley I 2 · 0⤊ 0⤋
If you spend all of your money on paper BEFORE the money actually is paid to you (budgeting), you should have no problem saving at least 15% of your gross income.
That would be $812.50/month.
If you cannot save 15% of your gross income, then eliminate expenses until you can.
By saving 15% of your gross income, you will be able to become independently wealthy and fulfill many of your life's dreams.
There are FREE budgeting forms available at http://www.josephsangl.com Click on "TOOLS".
2007-05-21 16:31:24 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Saving 10% of your gross would be a good idea - you'll be glad someday that you did. If you have an employer match available for a 401K, be sure to take full advantage of that.
2007-05-21 16:26:45 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
that is tough to say, without knowing your expense ratio. I would say 10% of your income is a good start. Max out your 401k if you have one.
2007-05-21 16:31:45 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Try to save a third of it. That way you are covered in case of emergencies and can also gain interest.
2007-05-21 16:30:07 · answer #7 · answered by Igloo Man 3 · 0⤊ 1⤋
65,000 - 20,000 tax and so on, cost of living is about 35,000 if you don't spend much and that leaves you 15,000, then you have to pay extra fees like mortgage, utitilies, and that may leave you 5000 left.
Of course, if your wife is working, you will be better off.
2007-05-21 16:30:50 · answer #8 · answered by mystery t 4 · 0⤊ 1⤋