Saving is to allocate part of your income regardless of the source, after deducting all the monthly expenses.
Like most people, you’re most likely to seek financial security and stability, and
one of the best ways to achieve this is to save as much money as possible.
This raises the following question: How much should you save each month?
Should you save 100 JOD per month? Or should you consider a percentage?
It depends on your status, there is no rule, yet there are a number of tips to help you save money and accomplish your financial goals.
Set a goal when you can set the amount of money that you want to save
First, set your goal for savings, then you determine the amount you should save.
Depending on your current status, your goals may include savings to buy a home, going on a vacation or university education.
Saving money is not only related to a retirement account or contingency savings
Your savings helps you pay for things that are important in life, but your short-term and long-term goals can have an impact on how much each month you provide; so start thinking about things that are important to you today.
Set a percentage of your income per month such as saving around 20% of your money.
If you can control yourself when it comes to budgeting, you may need to save a percentage of your income instead of a certain amount.
One of the most common ways to do this is to follow the 50/30/20 rule and divide your income to three different areas.
The largest part: 50% for your daily living needs including lodging and food. An amount of 30% can be used for estimated spending, which may include shopping or outings with friends. The remaining 20% goes to cover your financial needs, which includes paying debts.
This division may seem ideal for some people not for everyone. For example, if you are still a fresh graduate, your budget might be tight. This means that saving 20% may not be easy.
Instead, you can save a part of your income to suit your budget.
Invest for your future
The earliest you start saving for your retirement, the more money you’ll get to enjoy when it’s time to retire.
You should start saving money for your retirement as soon as possible.
Pay for yourself first
It is not that important if you followed 50/30/20 rule or saved a specific amount of money. You have to pay for yourself first.
This means that before you do anything else; make sure you allocate money to the savings.
If you follow these tips, you will be on the right track to start saving on a monthly basis.
Are you ready?