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If you cant save 20 percent, you are not a failure. While everyone should aim for 20 percent, not everyone will hit the target on their first try.
Start small. Start with 1 percent. Slowly increase. Aim for higher, but if it leaves you stressed, scale back. However, keep the 20 percent goal in mind. When you get a raise, increase your saving rate.
MORE IDEAS FROM THE SAME ARTICLE
The popular 50/30/20 rule states that you should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and 20 percent for savings.
You can take advantage of the tax-sheltered retirement accounts like 401(k)s and IRAs.
Assuming you're in your 20s or 30s and can earn an average investment return of five percent a year, you'll need to save about 20 percent of your income so you can reach financial independence when you're older.
The four percent rule states that you could withdraw four percent of your principal balance every year and live on this indefinitely. That means you need to save 25 times your annual expenses to become financially independent.
If you can't save a good chunk of your paycheck every month, investing once now can help you start saving in the long run.
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