Saving some money is something that most of us strive to do, and rarely would anyone say it is not a desirable task. There is often a question as to what is the ideal amount you would want to save on a regular basis. The answer, of course, depends on your situation, events that you can foresee, as well as your professional and personal goals. The most important thing is that you save some, even small amount, and that you keep doing that on a regular basis.
- A popular way to budget your money is to spend 50% on necessities, 30% on wants and 20% on paying off debts.
- You can save too much money as it can cause anxiety and also can cause you to take on unwanted debt.
- There are great ways to save each month including paying yourself first, set up automatic savings and also to audit your finances.
“Remember, the entire 20% isn’t devoted to savings. Reserve some of that for paying off credit cards and other high-interest debt, if you have it.”