Saving money is something that we often talk about here at Pinching Your Pennies but there’s a good reason behind this. Everyone should be doing it! Yes, even you should be saving money like there’s no tomorrow. Okay, so maybe that’s a little bit extreme. So, how much money should you be saving? How much is enough? Well, a lot of that depends on your lifestyle but with the practical tips below, we’ll give you a rough ball park figure. Now, scroll down and take a look. It’s time to find out how much you should be saving up!
How Much Do You Make?
No, you don’t actually have to tell us this but you do need to think about this. Obviously, unless you’re in debt, the more money you make, the more you can save. At least, that’s how it works for most people. So, if you’re only making $400 a week versus someone that makes $1,000 a week, you can’t save as much money as them. Or can you? These are all questions that you should be pondering over and figure out how much you’re able to save.
How Often Do You Put Back?
Yes, we want to know how often you save money. Are you adding money to your checking account every single week? Every day? Once a month? Learn to build good habits and you will soon see that every time you get a little extra money, you add it to your bank account. Then you can head home and enjoy a quiet evening that doesn’t count on spending money.
How Much Should You Save?
Now we get to the big question. How much money should you save? Okay, here’s the best advice that we can give you. Try to save 25% of every paycheck that you get. We know that this won’t be possible all the time (and sometimes you can save more) but the main thing here is that you try to save this amount. Exceeding it is great but as long as you try, you’ll feel good about what you’re trying. So for every $100 you make, try to save $25. If you make around $800 minus taxes bi-weekly, we want you to try to save about $200.
Where Will This Take Me?
If you use the example that we gave you above, you’ll save money in no time. If you’re making $800 bi-weekly after taxes, you should be saving around $2,800 a year. In 5 years time, you would have around $14,000 or so. That’s a big chunk of change to be sitting on and it will prove to come in very handy as backup money or your emergency funds, right?
Of course it will! That’s why we want you to start taking care of your finances and save a little money. The hard work will pay for itself time and time again. Trust us when we say this but you definitely don’t want to live and work in today’s world without saving money. Loans have high interest and banks are giving out less and less money to their customers. Don’t stress it though. Thanks to PYP, you’re now going to save more money than ever!