How much percentage shoud I set aside from my bi-weekly income for long term saving/emergencies?

Question

and how do I calculate the percentage? my savings bank is in another state, so i plan to have it for future contingencies like medical and personal money after divorce. And in non of those, long term savings then since it;'s not being touched.

Answer 1

The thing to remember if you are trying to setup yourself for the future is to pay yourself first. The govt gets a percentage of your money off the top of your check, so take as much as you can out of your net pay and put it into savings. The easiest way is setup a direct deposit into your savings on a set day so you never miss it. Plus look into your current monthly spending, Im sure you can find areas where you can reduce some bills. Ex cell phone, cable, internet, utilities, food, etc. I use to work for cingular and believe me, there is probably something you can live without on that bill! Good luck!

Answer 2

First, you emergency fund and your savings should NOT be in the same account. 3 to 6 months of expenses in the standard recommendation for an emergency fund. I usually hear 10% to 15% for long term savings. Any money in your name is subject to the property settlement should you divorce.

Answer 3

divorce will tap into this account so keep it underyour bed or hide it somehow, you need to minus all your expenses to include a portion for self maintenace and entertainment, then the money left over will be savings. A good amount would be between $200 and $up biweekly for savings high end and $1 and up low end

$200x 26biweek=$5200yr x 30yrs= $156k
$1x 26biweek=$26yr x30yrs=$780.00