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How much you should save monthly from the salary you earn – Latest News, Breaking News, Top News Headlines

If you plan to start saving a certain amount of money, you would have to record it in your personal budget, as a fixed cost, as long as you do it regularly and in the times you establish, in order to meet your financial goals. So here we tell you how much you should save monthly from the salary you earn.

How much you should save monthly from the salary you earn

There is a form of savings that you could apply, it is the « 50/20/30 Rule », which aims to allocate 50 percent of the monthly salary to make payments such as: debts, mortgage loans, food, services, among others . 20 percent will be applied to everything related to savings, such as any unforeseen event that may arise, car or home purchase plans, etc.) and thirty percent to personal expenses such as recreation, leisure, meetings and clothing . It is worth mentioning that if you meet the amount for each month, it could be a great savings for anyone who has future projects.

How much you should save monthly from the salary you earn. Photo: Pixabay.

The twenty percent of your salary that you could set aside for your savings, it is advisable that at the time you receive it, you immediately separate it from the remaining seventy percent of your salary, with the aim that you do not try to spend it on other outside items to your possible savings, in addition to the fact that it would be convenient for you to open a bank account especially for the guardian.

It is important to mention that with this modality of 50/20/30 some doubts could arise such as: Is food basic or is it a craving that arose on the street? Define what is the objective of buying clothes, that is, Is it fashionable clothes? Is it to dress your children for necessary reasons? Like food such as fruit, vegetables, rice, they are staple products, but cheeses, seafood and beer could be taken out of the expenses that belong to 50 percent and integrate them into the 30%, in case there will be space left.

The salary money that each worker allocates monthly for their savings, could depend on their income and expenses. You cannot save the same economic amount for an employee who earns one or two minimum wages and who has a large family for which he has to pay his expenses, than for a family in which there are only two or three members and his monthly salary is higher.

Sometimes saving seems impossible when wages are low and expenses are many, it is always possible that there are ways to make a little save.

There is no law or regulation that tells you how much of your salary you should save, because each person has different economic situations. Regardless of this situation, a saving of at least ten percent could be recommended and if it becomes very heavy, you can start with five percent, the important thing is that you start doing it.

Nor should you try to be extreme and try to save an amount greater than forty percent, since you could be very tight when you want to make your fixed payments.

Some factors that prevent you from failing when you want to make your savings, is not having a plan or budget for personal income and expenses, that is, you only save what you have left over, which is not bad, but it could not be optimum.

More information in our Savings Section.

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