Savings

Hi dear, Even though the income may not vary a lot in a short period of time and the expenses keep chaning, the ratio of saving also would change. But if you keep a minimal saving pattern it would help you when you become older. I just mean to say keep a habit of saving, and when it become a bigger amount, you will love to save more in and in turn, when you are in a need of urgency, it will definitely help. Regards, Thank-s

I think there is a minimum subsistence level wherein you cant save anything! If you try to save there, you are likely to pay price with health or career at a future date. This again depends upon the size of the family and the ages of family members. If there are too many elders, this would be more, because of medical expenses. Likewise in case of children it would eat away towards education expenses. Somewhere in between there is work fatigue, which needs to be shaken up otherwise work might become monotonous and the person would lose interest, making it difficult for him or her to progress. Once all these requirements are covered, then comes the saving for retirement. Depending upon age when this becomes feasible the percentage varies. :) If income is enough, on average a 25 year old single person should be able to set aside 25 percent whether through savings or home loan installments. Otherwise, a 10 to 20 percent with periodical increase in this percentage as time goes on should be able to cover it.

A more corect approach would be what type of savings you would need in retirement. For this a comprehensive analysis of present day expenses would be necessary. This can then be projected for the period in retirement by assuming an average age of survival for self and spouse - approximately 80 to 85. With this age in hand, and the requirement towards the end of life, we can check how much saving would be needed on reaching retirement.

Wow! That's really great, pinaybigbucks! I must agree with puccagirl that it's pretty impressive. Are you working locally? If so, it seems like you're earning truly well to be able to do that. I have a computer rental shop business and, at the same time, I am a freelance service provider who works from home. Though I earn more from my freelance jobs, I opted to keep my business so as to assure daily cash inflow. Despite having two sources of income, I sometimes find myself in tight financial situation. At times I wonder, how come when I have no transportation expenses and other stuffs like of those who go to work everyday? I often hear friends and relatives who have regular jobs complaining that they always have a hard time making both ends meet. Some say thanks to loans and credit cards so life goes on. If they can hardly make both ends meet, logically, there's nothing left to save. Anyway, to make sure that I can really save for myself, I enrolled in BPI's auto save program. Upon registration, I simply chose a minimal amount to be regularly deducted from my regular savings/current account on a weekly basis. I admit I do find it hard to set aside for savings on my own. Now, through the auto save program, the weekly amount which is automatically saved for me is just like a regular expense, though it is actually a savings for the future.

That is pretty impressive, pinaybigbucks! I wish I could save as much out of my salary!

I think you have a better understanding and good knowledge of what and how to do with our financial positions. I recommend every one should follow your recommendation whatever their income is. The basic formula what you adopted can be a formula for life and which in turn lead to a better living and very rare people only follow such rules. Normally, the insurance people would recommentd such norms for life standards. This guidance can help a lot of people to resolve their money dealings and better investment pattersn. What you predicted is a strong pillar to build our financial life I wish all our friends should have a look on your comment and follow it. Thank you and best regards, Thank-s

Hi, Yes. You said it. For a better living, what you said is a compulsory factor as life is keep changing. Best of luck and thank you for your comments and understanding. Thank-s

Hi dear, I don't know from which country you belongs to. Nothing to worry. It is as simple as drinking a glass of water. Even I don't know how much you earn in a month also. But there are some basic things for whatever income you have in a month. You can do few things. Keep some cash balance with you. Reduce extra expenses. Only pay for the most required things. Ignore the unwanted purchasing. When ever you go for shopping or purchas something, justify whether it is really in need of that time. If not, just ignore it. Spend wisely. Make a decision that atlest a particular percentage will be saved every month, ie, you can open a fixed deposit with a bank and keep it continue. And make it as a recurring deposit. That means you can start with as low as $10 (an example) for every month and continue for to put minimum that for every month. If possible, put more or as much you can (without hurting your financial reqirements). Once you find that money is growing, you will feel happy and do not touch the amount till a genuine requirement is come up. This will help you to more and more to save, and finally one of your great requirement can be easly solved after some year of time. Observe it. I am sure that you can easily do it. But your full support and co-operation is required. Only your co opeartion can make it as a success for it. Start today only and if not possible to open an account, keep the cash with you only in a safe place and let grow it. Best of luck and have a nice day. Regads, Thank-s

Hi Kaze, I work for a bank and, as I've experienced, 30% will cut into your budget too much if you're used to using ~100% of your income. My advice to my clients is always to start small. And increase gradually as you start to get used to savings. Savings is VERY important. But just as important is the money that your savings will earn for you else inflation will negate a portion of that savings... but I think this is another topic worthy of its own thread :p

Yes, I think you have very good understanding of your income & expenditure level. Even though it is a small amount, having a habit of saving will help you in the later stage of your life. Plese continue and develop a habit of saving. Regards, Thank-s

Hi, One way you are right. We should know the expenditure what we make is giving adequate result/satisfaction to us. If we spend some money for something, it should make sure that it is really helped or it was really needed. Many people spends a lot for unwanted or not really required things. If we avoid such things, of course, we can save more and proper spending will ultimately result in more savings. Thank you for your comments and valid opinion. Regards, Thank-s

Hi dear, Yes, it is important to note that your income and expenditure are matching. Spend less on unimportant and unrequired things, which in turn will help us to have more cash balance in hand which will automatically help for savings. If more savings are with us, our desire to save all will get increased. Finally this will motivate more and after a fine day, we will have a good sum of amount in our hand which can be used for a great reqirement. Regards, Thank-s

I like the person like you. It is a habit to be continued. A wise saving attitude will help us in our future life more happier. And as you said, at time of emergency will be a great help. Thank you for your comments and wish you all the best. Thank-s

Yes, every one agrees that the expenditure side is tremendously increasing while compared to our income. So, having a habit of saving from whatever we get, will help our future. A saving is what we earn. Thank you for your comment and hope we will meet again. Regards, Thank-s

Hi dear, I really appreciate your attitude. Saving is an art and if properly maintained, you will get self satisfaction. Also will get motivated through the growth of the fund. Your determination will definitely increase the percentage of investment in future. I mean to say, if you find that you got more in with you, a tendency to make more will lead to more in your bank. Keep doing and wish you all the best. Thank-s

Hi dear, As you said, it is depend on person to person. Every one's income is different and life style etc are totally different. But there is one uniformity that all are getting an income. Depending on their surroundings, they need to spend and save as per their position. But having a money balance at the end of every month, it will indirectly help them only in future. Many are lots of burden with them and few are not much liability. So, depending on the people's income and expenditure level, everyone can decide how much can invet for the future. Thank you for your valid comment and wish you best of luck. Regards, Thank-s

I totally agree with you. People at medium levels are getting a lower level of income. As the expenditure is exceeding the income level, we are unable to save more at many times. A wise spending and avoiding unwanted expenses can reduce our burden. Even though our daily needs are not able to meet at several times, many people have an intention to save atleast a mere percentage from what we get. Now the times are very hard and our economy is keep changing and competition at all fields are too tight. In such times, the saving has much importance and we should keep saving whatever we can though various ways. By less expense, by cut short expensive shopping, etc can reduce spending and will lead to more saving. However, thank you for your comments and bet of luck. Thank-s

Hi, Yes, you can make as much you want. Saving is a good habit and the desire to save money is an art and if planned properly it will help a lot in future and the out put is the self satisfaction and an immediate help at times when you are really in need.