How much should I save?

2010-05-23 1:13 am
I am 23 now, say if I get paid $3000 a month, is it adequate for me to have 2/3 of the amount on saving, which is $2000 to the bank every month, and $1000 for my personal use and entertainment?

What percentage of income do people normally save per month?

回答 (1)

2010-05-24 4:23 pm
✔ 最佳答案
If you could save $2000 in cash every month it would be more than adequate and actually quite amazing. That would give you $24,000 in the bank every year... in ten years even without interest you would have nearly a quarter of a million dollars in cash... at age 33! And if you had it in an interest-bearing account, you would have even more. You would be well on your way to retiring early and as a millionaire if you really did save that much and managed it well (earned interest, a good portion invested in tax-free municipal bonds or bond funds, with reinvestment).

Most people can hardly save anything at all. Some attempt rules of thumb such as saving one third, or one fourth of income, but most of these strategies fizzle out due to rising expenses and the curveballs thrown at us throughout our lives.

You are making a great decision to start saving so early, and having the will to save so much and spend so conservatively is a testament to your responsibility and maturity. If you really can save $2000 each month, I would certainly suggest you do that... and enjoy the wonderful financial-worry-free years you will earn for yourself in the future.


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