What percent of money should I be saving?

Question

I just turned sixteen and I'll be getting a job soon. I got about three hundred dollars for my birthday also and I want to start setting some money aside. I already have a checking and savings account (I already have a car so I don't have to save for one). So what percent of my overall income should I be saving? What are some saving tips? What percent of my income should be disposable?

Answer 1

Well I don't know what bills if any you have right now but an adult with morgtage and other bills should save 10 %. If you can save more now you'll be better off later.

Answer 2

hello - great question!  starting savings early will make your future much brighter!  

Save as much as you possibly can, I would say with your low expenses, around 30% off the top (before expenses).  The rest you can spend on your expenses and "fun".

The value of compound interest is huge, and putting it away now will allow for more money in the future.  Look around at the local banks and see which offers a savings account with the highest interest and open an account there.  (Or look at Credit Unions if you can, same goal - find the highest interest rate possible and continue contributing each week/month and watch your money grow.  

You should consider a fee based finacial advisor when you have about 1000 in savings - they can help make sure you are getting the best possible return on your money.  

Good luck!