Savings

@sunita64 (6473)
India
November 8, 2006 7:07pm CST
What is the ideal amount you should save for a rainy day? Some say at least 30% of your income, some say spend all, what do you say.
2 people like this
10 responses
• United States
4 Dec 06
I wish I could afford to save 30% I think we actually put up ( anod not touch ) about 5% of our earnings but we also make a semi-annual contribution to IRA's and things like that.. We are becoming more and more finacially stable as the years go on we are a young family Im only 24 and my husband is 26 and we have two children so we are learning and growing but we are self sufficent.
1 person likes this
@sunita64 (6473)
• India
4 Dec 06
It is ok but since you consider saving more than it is good for children's future as well.
• United States
7 Dec 06
I am Native American and my children both have a trust fund with a dividend deposited into it twice a year of about 4500.00 each deposit, saving for my childrens future isnt really nessecary. once they turn 18 they will have access to this account assuming they have finished their high school education and if they havent finished school they have to wait until they are 21 years old.. I as well receive this check, we live a nice life it's just what's in savings is very minimal that is actually going up to retirement only 5% like I mentioned above but as far as what is in my savings bank account( well... it's enough )
@sunita64 (6473)
• India
10 Dec 06
thanks for responding.
@Desdemona (1305)
• Canada
28 Nov 06
I say you should take 10% off every pay cheque and lock it in the bank.
1 person likes this
@sunita64 (6473)
• India
4 Dec 06
Thanks for replying, it seems a majority is saving 10%.
@cikedo (3487)
• United States
28 Nov 06
I save about 1/4 of what I make and put it in the bank.
1 person likes this
@sunita64 (6473)
• India
30 Nov 06
Instead of putting in bank it is better to feel to put the money in an instrument which yields better results.
@tarachand (3895)
• India
27 Jan 07
You should save as much as you can, the amount depends upon the nature of responsiblibties you have and your income. As an advisor (I am a qualified Financial Advisor), I suggest to my clients that they must have at least two months income amount that can be liquidate easily to meet emergencies, which could be built to around 6 months income over time. And this should be topped up as often as you can, or maybe invest in mutual funds or other asset clases.
@sunita64 (6473)
• India
28 Jan 07
But somehow I feel mutual funds are risky. But yes I agree that at least two month salary should be for emergencies.
@sigma77 (5385)
• United States
26 Jan 07
I believe in saving, investing, spending and giving. I think there is an umlimited supply of money available to all. It depends on how you look at money.
@sunita64 (6473)
• India
26 Jan 07
Yes that is true.
@katrina21 (116)
• India
10 Dec 06
Savings depend on your needs and on your responsibilities as also your ultimate goal for the savings. If you are saving for retirement, and hope to retire soon, then saving the maximum you can manage will help you to retire sooner. If you have kids, you will have expenses which you cannot totally avoid. If possible save at least 30% of your income before taxes. Then you could achieve financial freedom in about 10.5 years (assuming a return of about 15% from equity over the long term) Investing in equity is the only way to beat inflation over long periods (more than 7 years).
@sunita64 (6473)
• India
10 Dec 06
Thanks a lot for the information.
@vikranth (179)
• India
10 Dec 06
i work to earn and earn to spend.....no savings
@sunita64 (6473)
• India
10 Dec 06
That is good but what will you do on a rainy day.
@jbdhiman (551)
• India
7 Dec 06
saving is must for life
@sunita64 (6473)
• India
10 Dec 06
You are absolutely right
• United States
7 Dec 06
I've always heard you should have at least 3 months worth of paychecks saved up in case you lose your job. Lots of other people say at least $1,000. I try to keep as much in savings as possible.
• United States
7 Dec 06
I Agree-3-6 months worth of expenses is a good target for your cash reserves. If your expenses are $1000 per month, try to maintain reserves of $3000-$6000 at all times if possible.
@achyuta (2853)
• United States
6 Dec 06
I think one should invest the money into an online business. Some part of the investment should be in mutual funds so that safety ios higher. :)
@sunita64 (6473)
• India
6 Dec 06
I agree with you.