LA Business Daily
What percentage of my disposable income should I be saving?
Please cite a financial planning source.
Public Comments
- I've heard it said that in reality you need to have enough money in savings to pay ALL of your bills for up to a 6 month period in the event that you suddenly have no money coming in. What percentage of ones income that would be..I don't really know, but obviously it's going to be different for each person.
- it depends, U must consider ur age, married or unmarried, cildren or withoy dependents to u or no etc etc. Any way U can make a rough guide from below. Age 20 to 30 -- Unmarried. First INSURANCE IS A MUST as at this age it is cheaper so when U grow old u get good money. At this age u must plan in pension, gold , real estate and lastly shares only for buying No selling for next 20 years. U can allocate a whopping 40 to 60 % for savings in the above group. Age 30 - 40 Same a s stated above Unfortunately U cannot allocate more than 25% Age - 40 - 50 More of pension and fixed income securities. Unfortunately U get hardly 10 to 15% only for savings Age 60 - 70 Only in Annuties and Medical insurance. u can hardly invest if u have planned well from your youg age and has no medical expenses then u still can invest a whopping 50% of your income which in any way be going to ur grand children. Age 70 - 80 You have very little avenues for investment and savings. All U can do is what u have earned or save so far it can be tough time for u to safeguard it. As ur relatives son daughter will start eyeing ur money. Instead of savings u can do some charitable work Age - 80 -- 90 Slowly u become a burden to ur son daughter etc. best is to live happily away from relatives and do charitable work No Savings potential Age 90 -- 100 A heavy burden to son or daughter unless and otherwise u R rich hale & healthy. Time U openly tell who is going to get ur money and how much. Savings potential NIL
- I think that you should be investing 20-40% of your disposable income and saving 30-40%.
