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561 sats \ 1 reply \ @nullama 20 Dec 2023 \ on: How Much Should You Save? Personal_Finance
The bare minimum should be to spend less than what you make. Surprisingly, many people in the world don't do this...
To setup a specific savings rate, I think it works the best if you have a goal in mind. Calculate how much you need to make it happen in a specific amount of time, and note down that number. That's your savings, create an independent high interest savings account for that.
If you don't know yet about your goal, set aside a good chunk of your income and put it into savings. Make this transfer automatically every month or whenever you get paid. The point is to have that money gone before you can use it. You will get used to the lower amount. Slowly you will see that you have a nice savings amount.
To do this, you need a surplus, so get more money and spend less.
Yes. Comes right from "The Richest Man in Babylon". Pay yourself first, the number one commandment
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