Saving money is something everyone wants to do. But it’s a lot harder said than done. That is why your friendly neighborhood….friend is here to help you learn how much you should save each month.
50/30/20 Rule
This rule has been around for a while and it’s a good starter to determine what your overall budget should look like. The 50/30/20 rule states that 50% of your money goes towards your needs. 30 % goes towards your wants, and 20% goes towards your savings and investing.
Try this rule out if you need somewhere to baseline your measurements for. Once you get a hang of this you can adjust it as needed.
Start with Something
Like I mentioned earlier, you need to start with something. Even if it’s just a few dollars a month. The hardest part of starting anything, is actually starting. Once you get used to doing that you can increase it twice a year or as frequently as you want.
Tax Advantages
Another way you can save is by making use of the tax advantages that come with saving. Specifically talking about saving with your 401k. When you put money into your 401k it gets deposited tax free. Meaning that this money is taken out of your check before taxes are.
What this and other tax advantage savings plans do is lower your overall tax rate. This puts more money in your pocket than going to the government. And what I like to say is I would rather pay myself then pay uncle Sam.
Rob’s Opinion
There is no right answer to this question. But I hope that my article will help you find the answer that you need. Everyone is different and you have to do your own research and find out what works for you.
If you are looking to make a quick buck there are thousands of ways to do it. But the most important thing is that you build something sustainable that will pay you for the rest of your life. To be put years ahead of everyone else, head over to my Wealth Building Playlist to find out how.
