I am 25 and I was wondering how much money a person of my age should save yearly in percentage?
2007-12-02 19:12:46 · 6 answers · asked by Chris 1 in Business & Finance ➔ Personal Finance
Chris,
The rule of thumb is to sock away at least 10% of your annual salary. Personally, I'm stashing 25% away and would make that recommendation to anyone who could swing it, but at your age and engaging in a defensive investment strategy, you will do just fine with 10%. In fact, surprising as it may sound, with saving just 10% you'd be doing better than most.
I'd suggest setting up an automatic withdrawl to whatever savings vehicle you choose. Then the only discipline you'd need to exercise is not touching the money; instead of having to have the discipline to manually save the money each month AND the discipline to not touch it once you save it. The whole "path of least resistance" thing...
2007-12-02 22:49:37 · answer #1 · answered by Bad Boys Drive Audi 2 · 0⤊ 1⤋
They say you should save 10% of your income. Now since you are so young you have the advantage of time on your side. I'm the same age as you and have come to find out from talking to professionals, that now is the time to set up your future retirement. Your money will have lots of time to grow if you investment at your young age. You should be savings as much as you possibly can. Don't get into debt and create the habit of living frugal and saving now. I hope this helps
2007-12-03 06:03:02 · answer #2 · answered by jt6341 3 · 0⤊ 0⤋
Save as much as you can. Invest in your 401k plan if your employer offers it. Check into other option like stocks, mutual funds, etc. Start at a young age. We had a financial planner speak at work a week or so ago about retirement. He said by 2048 that there would be no more social security. Stay away from credit card debt. What you spend making the monthly payments on that could go into a retirement fund. Credit card debt is easy to get sucked into. Don't go there because it can add up faster then you think. I found that it's easier to save when it's automatically taken out of my check. I increased the amount of my 401k because it comes right out of the check and there is no way for me to spend it. My mutual fund comes right out of my check. I don't know a lot about finances, but save, save, save and start young!!!
2007-12-04 17:10:53 · answer #3 · answered by shygrl33 5 · 1⤊ 0⤋
ALL of it.
As much as possible, and a little more.
But if you can do 25% you're doing better than most.
OR, just spend it all and enjoy the party.
2007-12-02 19:24:09 · answer #4 · answered by bahbdorje 6 · 0⤊ 0⤋
as much a possible dude.make hay while the sun shines
2007-12-02 19:16:07 · answer #5 · answered by Pariah 5 · 3⤊ 0⤋
Ten percent is ok.
2007-12-02 20:17:23 · answer #6 · answered by Ajay D 6 · 0⤊ 0⤋