Many say that saving 20% of your income is a rule of thumb. So for example..if you bring home $3,000 after taxes monthly. You should be saving $600 monthly. Leaving $2,400 for bills, necessities and some spending money.
Now lets take the average monthly rent for the area I live in which is around $1,437 (DMV).
Average cell phone bill $120,
Electric is $120 ( which by the way is ranked 4th in the nation, %20 higher than the national average)
Water $30
Car note & Insurance $500
totaling at $2,207 ... not including the following other necessities
such as food, gas, cable/wifi, childcare costs, miscellaneous items (dishwashing liquid, toilet paper, paper towels..etc. )
So for many, the 20% saving expectation is just out the question. And in a lot of cases people read blogs and stats. Then attempt these ambitious goals. Then they may fall short and soon become discouraged. And shortly after they find themselves right back in the same hole, swiping their cards, running up interest rates, late fees with no savings, no self-discipline and no idea how to make money work for them.
There is not set number, just a set of principles.. rules that really can apply to all. Whether your goal is 5% to 45% saved monthly. Set that goal.. but make sure its realistic. We have real bills, real problems. But also for that reason alone, whether you set it high or low. Set it. or be set up for failure.
And here on my blog I will be sharing these rules ..one blog at a time.
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