How much should I save each month to improve my finances? – Big Loan
Saving money is the secret of the successful ones to grow financially . And if we have savings, we lose the need to acquire large loans. With savings we can Eeyoretar the tastes we want and enjoy liquidity to face any emergency that may arise.
To save and improve your finances , it is important that you allocate a percentage of your income to savings . So “How much should I save each month?”
20% of your total income is good savings
Any amount that can be saved is welcome to improve your income. Ideally, you have a fixed monthly amount to help you get an idea of how much you can collect in the medium, short and long term.
Financial education experts recommend you save 20% of your TOTAL income. This will allow you to have a livelihood that can help you if in the future (Hopefully it does not happen!) You become unemployed or do not have a fixed monthly income.
When you can’t save 20% …
There are situations when 20% is not considered a realistic savings to start, especially when you have outstanding debts. In order to save this percentage, the ideal is to first get out of debt . We also recommend you avoid using credit cards or taking out new loans that increase it.
If you can’t save 20%, you can start with 10% of your monthly income. If this is also difficult for you, it is a good idea to evaluate changing certain habits to improve your personal finances . You will discover that taking advantage of discounts, controlling your daily expenses, etc. It will always be possible to save a percentage of your total income: Have it as your goal!
Some tips to save money …
To be able to save money in a disciplined way it is sometimes necessary not to have the cash, therefore it is preferable to have or open a savings account that allows the percentages that you have established to save each month to be safe from yourself.
A fixed-term savings account is usually an excellent ally to save money and earn interest with it.