InvestorQ : What is the right way to save my salary every month?
Katherine Gonsalves made post

What is the right way to save my salary every month?

Answer
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tanvi Patel answered.
1 year ago


Before answering your query, I would like to ask you to first know, “How much of your salary should you save?''

To find its answer, take your after-tax salary and then calculate the amount.
Generally, people come out with the answer to the same amount or the whole amount of salary. But you must know that to stay a content life financially once must spend only 25%- 30% of your salary.

Let's clear a myth, that saving of salary is at a standard percentage for everyone. It all depends on your age.
I won't be mentioning here the simple or regular do's and don'ts of saving salary but definitely some significant ones!

How to start saving your salary:

Separate the portion of the amount from your salary that you target to save.
Create an investment chart with the respective amount to invest. Hence, through this, you will be able to distribute that portion of the salary towards investment.
Set a financial goal for yourself this will help to park your fund for a longer time and your salary will be saved.
Apart from these, prepare a smart budget for yourself.
Create plans, list them, and calculate.
If you are at the age of 20s or say 25+, start with short term retirement plans. Get started with retirement plans. This would imply to those who are in their 30s. People at their late 20s can also add in their early target.

Bonus points:
It is a famous saying, that ''Saving is like building a muscle". It takes practice and work but with consistency, you can stay strong."

Ultimately it's not just about how much you save, but of how and where you invest this saved money to create wealth. Save as much as it results as enough fund in your saving account in order to cover your needs and wants. Make sure that your savings have made good room to pay for unexpected expenses, travel the world, buy a new house, or retire early.

Most importantly, consistency is key. I repeat again, don't rush to find the standard percentage of saving. But if you deposit small amounts regularly, you may soon be able to build up a large chunk over time to achieve your goals.