How much money should you save?
Isn’t it abstruse knowingly benefits savings entails for each individual, we still are not able to make necessary savings in our daily lives? There could be multiple factors involved for individuals who are not able to save even a fraction of the amount they have with themselves. Money Should You Save
Factors involving not able to save :
Markets have become so competitive that even for the slightest of essential commodities, there is a great variety of products. This way, people tend to get attracted to products that are not essential for their immediate use or the period ahead. Thereby, we tend to shop extravagantly, and here it becomes imperative for us to manage our expenditure so that we don’t end up in debt-ridden situations. Money Should You Save
Which age group should save how much money?
Saving money is not only meant for people who are working professionals. Savings should start from an age when a person becomes mature enough to understand the value that dough holds, which helps in surviving in society. Whether one is a school going or a college student, one must consider it as a difficult task s to save the part of the pocket money they receive. Even a small keeping each day can make a differentiating positive impact on their total amount.
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Working professionals | Money Should You Save
And for working professionals, it is imperative for them to save a specific part of their salary from easing out their living.
You can save money daily, weekly, or on a monthly basis. One should make a note and a routine for themselves as a responsibility to save money for their own greater good.
When it comes to how much one should save, there is no standard amount defined because everybody’s earning is different; it is not alike. Also, their standard of living is not comparable most of the time. According to needs, salary, overhead expenses, etc. one must figure out how much one can stretch out and squeeze their expenditure to make the right savings for themselves.
At least 20 percent of one’s salary can be saved per month by each individual. One can keep more if they can, but 20 percent is the minimum that an individual is required to do.
Let’s understand with the help of an example:
Suppose you are earning 12 lakhs per anum and 1 lakh per month.
Income per month = Rs 1,00,000.
Savings (20 percent of monthly income) = Rs 20.000.
Remaining amount = Rs 80,000.
Yearly savings = Rs 20,000 X 12(months)
= Rs 2,40,000
This way, you are able you save a huge amount every year, and if this money is deposited in the bank, you will get paid interest in keeping your money in the bank.
Students | Money Should You Save
Also, those who are students can cut short their expenditure by avoiding eating outdoors on a regular basis, once or twice a while should suffice their craze for dining out. Try saving and avoid unnecessary expenses.
Retirement savings | Money Should You Save
In addition to retirement savings, one must make a habit of savings from the very beginning when you start earning. Because retirement age is usually considered to be around 60 years. Since you cannot save as much from your retirement pension, taking this into account, you must make sincere efforts to save money. For example, if you think of buying a house when you are retired, then it won’t be that easy for you to save money at home and buy yourself a house at once.
Increase your savings | Money Should You Save
Once you are saving for a certain period of time, don’t just stick to the amount you have been saving for a while. Make increments in your savings year by year as time goes. Since prices of the goods in the markets don’t remain constant or stagnant, they keep on fluctuating depending upon the demand, and at times of inflation, prices tend to shoot up. Accordingly, saving should keep on increasing in order to match the market needs for the future.
Roadmap for a different age | Money Should You Save
Prioritize your expenditure to make savings for your future good. Make a roadmap regarding how much money you can save in your 20’s, 30’s, 40’s till your retirement age.
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