When you’re looking to work towards financial security or financial independence, saving is how you will get there fastest.
Knowing this is one aspect of the picture, but it’s a whole different thing to save regularly. Plus, understanding how much you should save exactly is another challenge altogether.
According to the 50/30/20 rule from Senator Elizabeth Warren, at least 20% of your income should be saved. 50% goes to needs, and 30% goes to wants.
If you’re sticking to the 20% savings of your income, this is an incredible amount to work towards financial independence.
You can save for: – Short-term financial goals – Long-term financial goals
What you need to do: – Make a list of all the goals you are saving for right now – Write down how much you need to save for each goal (total)