[Bizdustry.com]

50% of your total income should go towards essentials that you need in order to live.
30% of your total income should go towards "wants" or "luxury" items that makes life worth living
20% of your total income should be saved, in an account. This money should only be used in emergency's or for a savings goal, such as buying a house or going on vacation.

To work out the percent of your total income, divide the amount (total amount) by the percentage(s) above to give you the percentage of number.

Hope this helps you!

[Fergal]

Thanks for sharing that tip with us Bizdustry.com, it is a good ideal to work towards. Being conscious of the percentage of our income that we save, can help us increase our savings, giving us much more control over our financial situation.

For many of us, saving 20% of our income can be very challenging, however, it is a great goal to start working towards.

[JASPREET]

These days earnings are less and expenses are on the higher side so saving 20% will be a bigger challenge so we either need to earn more or spend less but earning more will be a better option

[augusta]

Your percentage for each factor is okay but the problem Is always about keeping to it. I will try to do especially the savings which helps a lot during the rainy days.

[Fergal]

Your percentage for each factor is okay but the problem Is always about keeping to it.

We can modify tips like this to meet your own requirements and to keep us motivated. For example if saving 20% is not practical at this point in time, I could reduce that to 5%. If it helps me control my money and get into the savings habit, that is positive, even when I am not reaching the desired 20%. Saving a small percentage is a good habit to get into and is much, much better than saving nothing at all.

[augusta]

Your percentage for each factor is okay but the problem Is always about keeping to it.

We can modify tips like this to meet your own requirements and to keep us motivated. For example if saving 20% is not practical at this point in time, I could reduce that to 5%. If it helps me control my money and get into the savings habit, that is positive, even when I am not reaching the desired 20%. Saving a small percentage is a good habit to get into and is much, much better than saving nothing at all.

Definitely, you are right that's the way to go. It is always good to work with what we are comfortable and convenient with. That way things can be implemented without hassles. Maybe I will start with 10%.

[Fergal]

Thanks Bizdustry.com, for posting a Top 101 Money Tip. Sending ForumCoin now

[Treborika]

It's a very nice idea.I don't know what one needs to do to abide on such a good strategy. Most savings got spent on the emergencies and you end up with nothing to save for the whole month