The number one problem in today’s generation and economy is the lack of financial literacy. Because we were not taught financial literacy in school.
Now, this article will show you how to segregate your expenses and “How Much Should One Save?”.
Generally speaking, a man who works for a salary should distribute the salary as follows.
20 percent of your salary should go to your savings account. Save first then spend. Most people aren’t aware of what they really spend in a month. If you have never tracked your expenditures, start writing down all your monthly expenses such as rent, cable bill, internet bill, food expenses, and so on. Keep a record for 1 month of everything you spend on during that month, no matter how big or small. Add up every thing at the end of the month so you will aware of on what you are spending.
The above chart looks simple but savings is a habit. It will take time to get comfortable with this habit. But after few months, provided you are consistent, it will give you a peace of mind. In other terms, savings account is a “peace of mind” account.