Are my savings up to scratch?
Looking at my (ever-depleting) savings account is never fun, but I’m trying my best to put something away every month.
As someone who lives pay cheque to pay cheque, trying to boost my savings account isn’t easy but something I’m keen to improve.
I made the rookie error of googling how much you should have in your savings by the time you’re 30 and the sum was pretty disheartening.
Financial planner Taylor Jovar told Forbes that people should have around a year’s salary saved by their 30th birthday.
Kovar explained: “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary.
“Let’s say you’re earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved. This comes from the goal of being able to replace about 70% to 80% of your pre-retirement income in retirement,” they added.
Saving a week’s wages is difficult enough never mind an entire year’s salary but how can we improve our saving habits?
One thing Kovar recommended is setting up an attainable direct debit to your savings account.
By automating your savings, you’ll top that account up on a regular basis rather than scrambling to fund it at the end of the month.
The best time to do this is on the day you’re paid so it’s going straight into your savings account.
What is one tip that will help boost our savings?
You won’t have the chance to splurge and you’ll quickly see the account rise rapidly as the months go by.
Many Her readers also suggested setting up a direct debit for your savings account because it’ll help you get into a routine of saving.
One said: “I set up a simple direct debit from my current account to my savings account.”
“Set up a direct debit at the start of the month so you don’t even see the money go when you get paid,” another said.
“Direct debit out on payday into my savings account. It’s the only way to make sure it wasn’t spent,” another admitted.
We may not have as much money saved as others, but many experts say saving something is better than nothing.
Remind yourself of that if you’re feeling low about how little you have in your savings.
We may win the lotto yet.
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