How Much Money You Should Save Every Month?

Money is fundamental need to survive in this materialistic world. This works as fuel to function or let us maintain the lifestyle we want. However, not all money should be spent on maintaining the class of our lifestyle. You should always save a certain fraction of money (savings) in order to avoid financial crisis in the future. The blog-post will help you to get understanding on fixed percentage of your income for savings purpose. 



How Much Money should be saved?

As per 50/30/20 rule, save 20% of your total monthly income or more! Spend 50% on essentials, 30% on discretionary spending, and remaining 20% for financial security. Many sources strongly recommended saving 20 percent of total income for well-managed financial future or good financial security. Well, saving this fraction is not as easy as it may sound. However, if you are a high earner, it is good to keep your expenses low and focus on saving a larger percentage of your income.  

Why should make regular savings?

There is no denying true independence means you can sustain your lifestyle entirely from interest of investments and dividends. Regular monthly savings helps managing all those responsibilities that would require more finances in the future. This could be heavy medical treatment of family-member, buying home, purchase of favorite car, expensive education of children, foreign trips and a lot more. Regular saving income will significantly help managing responsibilities without letting you be stuck in a dilemma. You will be ready to face challenges with a good attitude.   
  

  What If You Are Unable To Save Money? 

Well, it is okay if you save but what if making regular savings is taboo for you? Do not assume yourself as a looser if you cannot save 20%. You can start saving a little fraction of 1% and then 2% and then 3% and so on. Whenever you get raise in your income, raise saving-rate and touch your goal of 20%. 

This is the primary thing you can do to secure a fixed fraction. Besides, you can look for some other options of generating money to save more. Quite a large number of people have strong belief in having more than one source and so they can enjoy more secure and cheerful financial life in future. Here’re some easy ways to make second or third or fourth source of income- 

  • You can either learn forex trading tips to understand the market and work as an IB partner of a broking firm. This would not require any investment and fetches you more money every time you introduce a client to the broker
  • You can make more bucks by joining part-time job on the weekends to add bank balance
  • If you are good in writing or have the creativity to spread over the internet, working as a freelancer is a good choice
  • You can rent the extra space of your home and create a source of receiving money in quite easier way
  • Make use of leisure by working as a tutor, caterer, party planner, customer service representative, pet sitter, care giver, or delivery driver to enhance your experience and amass more ways of making money 
By following these easy tips, you can achieve the goal of saving more than 20% money of you total monthly income! 

Comments

  1. This is a really informative knowledge, Thanks for posting this informative Information. McKinsey

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