SALT LAKE CITY — One question a majority of people ask when they get paid is, "How much money should I save from each paycheck?"
According to a Yahoo Finance report experts say 20% of your paycheck should be put away into a savings fund. To put it into perspective, for every $1,000 you earn, the goal is to put 200 of that away.
That guideline doesn't mean you have to put the entire amount in a savings account; investing in an employer 401 (k) or Roth IRA account works as well. If saving that much out of your paycheck sounds difficult, Dave Nellis with America First Credit Union says to think about where your money is going to make room for savings: "Sometimes we think Well if I just had some more money I would be fine. Well, guess what, we spend what we make, so I think personal financial stability and wealth is not about what you make it's about how you spend it."
Take an inventory of your expenses and pledge to yourself to make cuts, such as skipping morning coffee at a coffee shop, packing a lunch instead of buying one, or maybe doing a home pedicure instead of paying for one.
All those services and goods add up and to invest back into your long term saving smarter goals.
