How Much of Your Paycheck Should You Save Each Month?
Most experts suggest putting 20% of your paycheck toward your total savings. This includes your retirement savings, short-term savings and any other savings goals you may have.
Other experts recommend visualizing this savings goal by using a 50/30/20 model, in which 50% of your income is used for necessities, 30% is used for discretionary items and the balance -- 20% -- goes toward savings.
If you can't save that much right away, don't let it stop you from beginning the process.
Some savers find it easier to begin by saving a more modest amount, such as 1% or 2% of their income, and gradually increasing that amount over time.
If you begin by saving 1% a month and pledge to increase that amount by 1% every subsequent month, you'll be saving 12% of your income within a single year .
-- and potentially as much as 24% within two years.
It's always easier to save if you have a plan.
If you have trouble saving, you could try:
-Automating your savings
-Sticking to a budget
-Joining an investment club
-Making an investment pact with a friend or partner