Fact List YSK

5 Things You Should Know – Part 37

Comments (1)
  1. Bob says:

    To #5.

    The standard is:

    10/70/20.

    10% of your after tax income goes towards savings. And before ANY expenditure that is first.

    Next is 70% that is what your life costs. Bills, debt, mortgage, cell phone, etc etc.
    Fit your life into 70% of your take home income.

    20% is f**k-all-whatever money. That’s your night out, beers, movies, whatever. That’s yours to enjoy life.

    And always “pay yourself first”. Always.

    So I would move savings up higher on your flowchart. And 401k is mandatory. REGARDLESS of employer matching. If they do 3%, great! Contribute 7%. There’s your 10%. If they contribute 0%, ah well. Then it’s on you to do 10%.
    But you have to do it. There’s no alternative.

    So there’s no ‘yes’/’no’ when it comes to saving. It must be first. Regardless of anything else.

    Only you are responsible for your own future.

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