how much you should save

The speaker discusses the importance of saving money, especially during uncertain times. They mention that 45% of people have less than $1,000 saved and emphasize the need for an emergency fund. The speaker suggests following the 50-30-20 rule, where 20% of income should be saved. They provide examples of how much to save based on different income levels. If unable to save 20%, the speaker suggests starting with smaller amounts and gradually increasing savings. They also recommend cutting unnecessary expenses and setting specific goals for saving. Even if living paycheck-to-paycheck, there are still ways to save by reducing non-essential spending. The speaker also mentions the importance of saving for retirement. all right and we are started um go here hey guys welcome back to the channel my name is Timothy and on this channel we speak everything personal finance and when I say everything personal finance I mean everything personal finance I am super excited for today's video because in today's because I'm super excited for today's video because in today's video we will be talking about how much of your paycheck you should save if the last couple years if the last couple years has taught us anything it has definitely taught us that we should be putting some money aside for saving when there was so much when you didn't know what's gonna happen tomorrow when there's so much change going on in life it's always good to make it's always when there's so much change going on life there's when there's so much change going on life it's always good to be saving and you would think more people would save because of this reason because of the reasons in the past because of the COVID because of so much uncertainty you want to have cash and cash is king and you would think people save but in fact 45% of people don't even have $1,000 in their account but in fact but in fact 1,000 but if but in fact 45% of people have less than $1,000 saved and in an emergency 1,000 might not be enough so regularly saving a portion of your check is very important and I'm going to tell you how much you should be saving I hope you guys are excited for this video and if you are please leave a like and comment down below how much you have saved in your account so why is saving important saving is super important so why is saving important saving can provide you with a lot of financial security it can help you pay down high interest debts it helps you put money towards emergencies it helps you put money towards down payments on houses down payments on vehicles saving is very important it's more it's important to not just spend all your money but to also be sure that you're saving a portion of money in your account when you have these high interest credit card debts it's hard to save so we want to make sure that we get out of these credit card debts first and then we start saving after but we definitely want to have some kind of savings while we're in credit card debt just in case something happens so we're not relying back on credit card debt when emergencies happen but we definitely want to get out of these debts first and then so we could we definitely want to get out of these debts so we can save especially in a volatile economic system especially in a volatile economic climate saving can also help you saving can also prevent you from going deeper into saving can also help you saving can also prevent help saving can also prevent you from going deeper into covering charges for certain expenses and items and when you're and when you have money saved you can take more risk more business opportunities that you want to do more you can start a YouTube channel you have money saved you can take a risk and starting a YouTube channel because you could put money towards YouTube channel and you can take time from work if you need to because you have enough saved to cover those expenses so saving is very important I'm going to tell you how much you need to be saved how much I'm going to be telling you how much you need to have saved in your I'm going to tell you how much of your paycheck you need to have saved so the big question how much should you be saving per paycheck so for this video so for this so the big question is how much should you be saving per paycheck we're going to go based off this 50-30-20 rule and if you don't know the 50-30-20 rule is I have talked about it in countless times in my videos I even have a video dedicated to 50-30-20 rule the 50-30-20 rule is based the 50-30-20 rule basically states that you put that you the 50-30-20 rule basically states that you spend 50% on your expenses that you spend the 50 50 percent 50-30-20 rule the 50-30-20 rule states that you spend 50% on necessities that you the 50-30-20 rule states that you spend 50% on necessities that's including rent cars mortgage that's including rent utilities groceries gas for your car and you spend 30% on non-essentials this is going out to eat this is anything fun this is buying clothing this is buying clothing items and then 20% is the is and then the 20% is what we're talking about today which is safe so a good rule of thumb to save 20% of your income but remember this is personal finance and it's all personal to you so this standard does not have to account to anyone there's also rules like the 80-20 rule where 80% is everything and 20% is saved so 80% is for essentials and having fun and then 20% is automatically saved this method provides you flexibility especially when essential costs are high especially if you're living in a high-income this the 80-20 rule is a great rule for people that are living in bigger cities where their essentials may take up more income but at least that 20% is still getting saved which is important so I did want to give you guys examples of how much you should be saving this is all dependent on your monthly net income this is all dependent on your net monthly pay so net is after taxes so I'm going to be example of what 20% is of certain net incomes I have three for you guys so if you made $2,000 a month then you'll be saving $400 a month on your monthly net income so if you're guys so if you made $2,000 a month then you'll be saving $400 a month according to the 50-30-20 rule if you made $3,000 a month then you'd be saving $600 a month that's your 20% and finally if you made $4,000 a month that means you'd be saving $800 a month for your 20% if you're within those income limits if your income is within that net monthly pay leave a comment down below if you're saving that amount every month so what we want to do is also it and just remember we want to and we also want to adjust our saving goal now if you're not able to save 20% then there's some things that you can do which I'll talk about later in the video on there's some things that you can do to save 20% which I'll talk about later in the video but if you can't save 20% of or if you can't say $400 and you make $2,000 a month then you can save $20-$15 anything saved is always good and then as you're and then as your finances and as your finances get better as you make more money slowly and gradually increase your savings rate so maybe you might save $20 one month and the next month you're going to go to $30 and then see how that then so one month you're going to save $20 the next month you're going to go to $30 and then see how that affects your and see how that affects your life and if it does if it see if that affects your life if it even does and see if that affects your life and what if you can't save 20% it's fine not one size fits all like I said this is personal finance and it's very personal to you so if you can't save 20% just say something $5 $20 $50 and try not to spend it for the month and then you get your you have to work on your mental you have to work the mental muscle of saving once you first start to save and you and you find that after the month you find that at the end of the month you have $20 saved and then you then it becomes almost a game and then you want to save 20 more dollars or 40 more dollars and see if it could stay in your account another thing you can do to be able to save 20% is cut expenses another thing you could do to save 20% is cut expenses you can cut unnecessary expenses just by going through your state just you can cut unnecessary expenses by going through your statements you can cut subscriptions you can cut you can cut subscriptions you can cut going out to eat because it's really not necessary and put that money toward your savings there's a lot of things you can do to cut down there's a lot of things you can do to be able to save more money but you really have to look at your statements and your financial position and see where you're spending more money than where you should another great way to help another great way to help motivate you to save 20% or save anything from your paycheck is to be is to have a specific goal in mind for what we're saving for if we're just if we're just randomly saving money and not really thinking about where it's going if we're just randomly saving money and not really having a goal of where it's going then it becomes very hard to have it becomes very hard to save so maybe you're saving for a three-month emergency fund and if you want to know how to calculate three months emergency fund I have many many videos where I talk about how to calculate a three-month emergency fund basically you're going to get your expenses and you're going to multiply them by three which three months or six months and that's going to get your emergency fund so maybe you're saving for your emergency fund maybe you're saving for a car which we use the or maybe you're saving for a car or you're saving to take your family vacation but we want to also have we want to have goals so we can we want to have goals so that we want to have goals these goals will motivate us to save more money over time and do it quicker and do it quickly and one and another goal and another reason we save and invest is because we want to have a good retirement we want to save for retirement and financial and financial experts so that you need to be at least saving and investing 10 to 15% and what if you're living paycheck-to-paycheck if you're living paycheck-to-paycheck there are still ways you can save yes it might be difficult but I'm going to give you some ways that you can still save even if you're living paycheck-to-paycheck cut down on non-essential spending like dining in cut down on non-essential spending like dining and eating like cut down on non-essential spending like eating out and subscriptions we don't need to go to Chipotle we don't need to go to McDonald's we don't need to go to checkered if you live in paycheck-to- paycheck this these things are not the most smart thing to do it's more smart to go to the grocery store cook your meals go to the grocery store buy your meals to cook you save you save more money by cooking meals at home than by going out to eat and cut off subscriptions and cut off subscriptions there's so many free subscription sites there's so many free and cut subscriptions there's so many free and cut subscriptions there's so many free applications out there where you can watch movies I use to be in freebie and all the I use YouTube I love YouTube so there's so many ways that you can there's so many ways that you can cut subscriptions negotiate your bills negotiate your subscription bills negotiate your phone bills there's these little things that you can cut out whether it's ten or fifteen dollars saved but that whether it's ten or fifteen dollars cut from those expenses and those if it's ten to fifteen dollars that are cut from those expenses then that ten to fifteen dollars can go towards your savings manage your debt focus on paying either the high interest at all first or the lowest interest focus on paying the either focus on paying the high interest at all first or pay the lowest balance off first personally I believe it'll make more sense paying off the highest interest because you pay less money overall but if it's if it's visually better for you to pay off the lowest amount if it's visually better for you if it's better to see visually paying it's better to pay off the lowest amount and seeing your progress as you climb up the ladder the then that's something that you can do as well and pay off the lowest amount another great thing to do if you're living paycheck-to-paycheck is automate your savings so this is what I want you to do I want you to go to your employer or go to the website wherever your paycheck is coming from and I want you to look for allotments I want you to automatically I want you to automatically I want you to automatically save a certain amount so we're going to start say automatically saving twenty dollars and it's going to a separate account an account that you don't have a debit card to an account that you don't have access to or account that makes it difficult to pull money out you're going to automatically save twenty dollars for the month so now you have twenty dollars saved for the month and then every month you're going to slowly increase that increase that amount until it really starts affecting your living until it really until it starts affecting the quality of life and then once you get to that amount where it's the good middle it's going to continue to save you want to work another job or find more jobs but you want to automate your savings this is what I do I automatically save a certain amount from each paycheck so I don't even so I don't even see this money coming to my checking account it goes into my Ally Bank where I get you know a 4.2 percent interest rate Jack hey hush and improve your financial knowledge there's so many videos on YouTube Jack sit down improve your financial knowledge there's so many videos on YouTube you know you're improving your financial knowledge by watching me today but there's so many but there's so many other creators out here that are creating videos about personal finance and there's so many books out here that you can read and just by improving your personal finance education you know by improving by improving your financial knowledge this can help make this can help you make better and if you're not making better decisions when it comes to finances this will help make this will help you make better decisions there's podcasts out there there's so many different resources that you can use to better improve your financial to better improve your financial wisdom and take advantage of those free resources and to better so you can stop living paycheck to paycheck and save what you need to save and move on to a better financial future the bottom line is building a solid financial the bottom line is building a solid financial cushion the bottom line is building a solid financial the bottom line is this building a solid financial cushion will help with the flexibility of a lot will help you're putting a solid financial building building a solid financial cushion with building a solid financial cushion with building a solid financial cushion will help with the flexible help you with the flexibility of life when things go sour you have this savings to rely on and not the credit card that you don't have the money to pay off whether you're saving 20% or 5% of your paycheck it's just important to save something starting with any amount is better than nothing the key here is that you have to establish a regular the key to this the key to all this is to establish a regular pattern of savings the key to all this is that the key to all of this is to establish a regular habit of savings you need to do this every month and what I said the easiest way to do this is to automatically have the money saved automatically have the money transferred to an off to an automatically have the money transfer it to an account where you have no debit cards to you can open savings accounts and different banks and they don't give you debit cards unless you open you can open savings different accounts and they don't give you debit cards unless you open a checking account so you need to be sure to move this money to save to a specific account outside of your main account thank you guys so much watching this video I hope you enjoyed it and if you did don't forget to leave a like and subscribe to my channel and I will see you guys in the next one and if you want it and then in a great way to say in a great way to put your money isn't and I'll see you guys next one but before I go I want to make sure I want to let you guys know that a great way to save your money is by putting into a Roth IRA and that's a great way to save and invest your money by putting into a Roth IRA and if you want to know how to open a Roth IRA and turn how to open a Roth IRA and invest into it and if you want to open if you want to know how to open a Roth IRA and invest into it I have a video right here that I just talked about you can check out my last video where I talked about how to open a Roth IRA so I was and you can check out my last video on how I talked about you check on my last video and you can check on my last video and where I talked about how to open and invest into a Roth IRA