how much to save
http://www.fool.co.uk/ten-steps-to-financial-freedom/step-2-get-control-of-your-money/
Once you are saving something each month, you should aim to set up an emergency fund so that you have money put aside to cope with any short-term financial emergencies, like losing your job. Opinions vary on how much you need for this. You probably want a minimum of three months’ expenditure, but you might feel you need more if, for example, you work in an industry where it’s hard to get a new job.
Internet bubble and credit crunch included, over the last 100 years or so, the UK stock market has returned an average annual rate of around 11%, outperforming bonds and cash by around 5% to 6% a year.
For example, over period of five years, the returns from shares have historically beaten cash around 80% of the time. Over ten years, this rises to about 90%, and for twenty-year periods, it’s 98%. With odds like that, we firmly believe that investing in the stock market remains one of best ways of building your wealth over longer periods of time.
http://lifehacker.com/the-20-question-how-much-of-my-pay-should-i-really-sa-1443199935
According to the 50/20/30 rule, your monthly budget should be divided into three distinct categories of expenses: 50% should be reserved for essentials (think housing and food), 30% should be allocated for lifestyle choices (things like nights out and 121 channels of cable), and at least 20% should go toward what we call “financial priorities,” which include debt payments, retirement contributions and, of course, savings.
http://www.forbes.com/sites/robertberger/2015/03/03/how-much-of-your-income-should-you-save/#337f7d75b175
Using the 4% withdrawal rate rule of thumb, we can easily calculate the nest egg we need to accumulate. We start with our annual spending and divide by four percent. The result is how much we’ll need to accumulate to retire. For example, an individual planning to spend $75,000 a year (including taxes) would need to accumulate $1,875,000 ($75,000 / 4%). Those who think a 4% withdrawal rate is too rich can assume a different percentage and adjust the calculation accordingly.
Once we know The Number, we can determine how long it will take to reach financial freedom based on our savings rate, rate of return, and current savings. The math here gets a bit involved, so I’ve created a spreadsheet that does the work for you. It’s a Google GOOGL +0.75% Docs spreadsheet that you can view here (to edit your own copy, use this link).
https://www.tiaa.org/public/offer/insights/starting-out/how-much-of-my-income-should-i-save-every-month
1. Retirement
You should save 10 - 15% of your income for retirement. Sound daunting? Don't worry: your employer match counts. If you save 5% of your income and your boss matches another 5%, you've accomplished a 10% savings rate.
2. Emergencies
You should establish an "emergency fund" that can cover 3-9 months of your living expenses.
http://www.fool.co.uk/ten-steps-to-financial-freedom/step-2-get-control-of-your-money/
Once you are saving something each month, you should aim to set up an emergency fund so that you have money put aside to cope with any short-term financial emergencies, like losing your job. Opinions vary on how much you need for this. You probably want a minimum of three months’ expenditure, but you might feel you need more if, for example, you work in an industry where it’s hard to get a new job.
Internet bubble and credit crunch included, over the last 100 years or so, the UK stock market has returned an average annual rate of around 11%, outperforming bonds and cash by around 5% to 6% a year.
For example, over period of five years, the returns from shares have historically beaten cash around 80% of the time. Over ten years, this rises to about 90%, and for twenty-year periods, it’s 98%. With odds like that, we firmly believe that investing in the stock market remains one of best ways of building your wealth over longer periods of time.
http://lifehacker.com/the-20-question-how-much-of-my-pay-should-i-really-sa-1443199935
According to the 50/20/30 rule, your monthly budget should be divided into three distinct categories of expenses: 50% should be reserved for essentials (think housing and food), 30% should be allocated for lifestyle choices (things like nights out and 121 channels of cable), and at least 20% should go toward what we call “financial priorities,” which include debt payments, retirement contributions and, of course, savings.
http://www.forbes.com/sites/robertberger/2015/03/03/how-much-of-your-income-should-you-save/#337f7d75b175
Using the 4% withdrawal rate rule of thumb, we can easily calculate the nest egg we need to accumulate. We start with our annual spending and divide by four percent. The result is how much we’ll need to accumulate to retire. For example, an individual planning to spend $75,000 a year (including taxes) would need to accumulate $1,875,000 ($75,000 / 4%). Those who think a 4% withdrawal rate is too rich can assume a different percentage and adjust the calculation accordingly.
Once we know The Number, we can determine how long it will take to reach financial freedom based on our savings rate, rate of return, and current savings. The math here gets a bit involved, so I’ve created a spreadsheet that does the work for you. It’s a Google GOOGL +0.75% Docs spreadsheet that you can view here (to edit your own copy, use this link).
https://www.tiaa.org/public/offer/insights/starting-out/how-much-of-my-income-should-i-save-every-month
1. Retirement
You should save 10 - 15% of your income for retirement. Sound daunting? Don't worry: your employer match counts. If you save 5% of your income and your boss matches another 5%, you've accomplished a 10% savings rate.
2. Emergencies
You should establish an "emergency fund" that can cover 3-9 months of your living expenses.
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