Sign up with Google
Have you ever thought about how much you should save every month?
The exact amount of savings and spending depends from person to person and should be decided depending on your financial goals, your income level, and your monthly expenditure.
To get you started, thumb rules could be of great help.
“Pay yourself first” is the first rule in personal finance. It means that you should first save money from your monthly income before spending it. Firstly, identify your goals, calculate the inflation (increase in the price level) adjusted requirement, and then make sure that your income gets transferred from your salary account to your savings account every month.
Another rule that could help you segregate your income into savings and expenditures is the very popular 50-30-20 rule.
As per this rule, one should assign 50% of their disposable income towards essential expenditures, 30% of it towards non-essential expenses, like going out to eat. The remaining 20% should be assigned toward your savings and investments.
