How much should we save?

It depends on peoples Earnings and monthly expenditures.

But setting a target is really helpfull i myself experienced this.

I set a target of buying a house in last year (in india)and reached the goal this year.

by saving monthly (almost like 12 to 15 months target ),Its also good to set small targets like 6months ahead and so on

I am here to hear more thoughts .

As far as my family goes, we save 1/3rd of our salary... irrespective of which part of the globe u r in.. cos 1/3rd goes as tax and we spend the other 1/3rd.

Savings can be in form.. monthly installment for ur housing loan, deposits, insurance premiums, reitrement schemes... anything as long as it is towards an investment. And with this philosophy of saving 1/3rd.. (though it is not a hard and fast rule.. and we do tend not to reach it sometimes).. our life has been happy so far (touch wood).

Anu

I agree with another contributor on the general formula of savings i.e. you should try to save at least 50% of your current age in completed years. But i wonder how long would this work? If the average retirement age is 60 years we would expect this person to save at least 30% of their annual income by his/her retirement age. But with rising cost of living and falling pensions and real wages (after controlling for inflation) is this really possible? Countries like the UK, Germany and Netherlands have a system of National Insurance Contribtions which currently in the UK stands at 11% deduction from your salary in addition to income tax. Your employer too has to contribute a larger proportion to this national insurance contribution. This goes towards paying a State Pension after the age of 60 plus other social security benefits. The state pension is index linked and adds substantially to the incomes of the old and vulnerable.

Hi!

Interesting topic, and one very close to my heart! I am a true believer of saving as much as u can! We live in a world, where there is no guarantee to anything, least of all jobs! When times are hard, like now, with recession and job losses........all those who saved and invested...be it in the form of a house, gold or FD's.......they can sleep a little more relaxed, knowing that they have a roof over their head, and something to fall back on....even at time like this!

In fact, I believe the power of saving really helps u through times like the one we are facing right now! No matter how small is the saving......Every penny Saved is a Penny Earned!

Hi,

A saving of 30% of your monthly income is good. This should be spread over various products like Mutual fund, rd, insurance etc...

The variety gives one diversification of risk.. The younger you are can risk investing more in mutual funds and sip....
Move bulk amounts regularly in to FD, gold, property etc....

happy investing

Hello Ladies

I need your ideas and suggestions on how much on a monthly or yearly basis we have to save forour kids education and other expenses....My son is 3yrs old and I want to start saving for his studies and other expenses...could anyone suggest the options...(both in India & US)....because I am not sure how long we would be in US...

thank you

no replies???

hi vidhya,

I suggest you to have some consultation from a financial consultant or an economist.
Cuz they can able to give you clear picture about the future inflatoins, and the cost of living.

I have met one consultant and really had a good opinion and forecast about the future financial moves.

Depends on the state you are located to look into 529 or Coverdale & get good financial planner or CFP to help you with that.

Hi Srividya,
Please refer to the below thread, It could be useful...


Investments for kids
Investments for kids

Tulasi