How Much Should You Save And For How Long?

There is no time limit for saving. The time for saving is determined by the person wishing to save.

A good savings plan, however, should be at least 12 months, that is if one making savings each month and at least 10 years if one is making savings annually.

Before saving, there are things that one has to consider, failure to which the whole saving exercise loses meaning. They including:

• A goal. To save, you must have a goal. You must save for something. If you don’t have something worth saving for, then you are better off munching your money in “peace.”
• A plan. Most people think that a goal is the same as a plan, but no. A plan is something that would guide you through the saving process; like how much should you save, when should you start and for how long.
• Discipline. You cannot save if you are financially indiscipline. You must be disciplined enough to hold on the saving path no matter what comes your way.

There are four simple rules that govern savings. They are so simple that many people often overlook them. They are:

• Who should save? Are you going to save as an individual, a family or as a group of friends?
• When should you start saving? This is the time that you purpose to start saving and when you expect to stop.
• What are you saving for? This is the goal or the purpose of saving.
• How are you going to save? In an investment? In a bank? What kind of bank account?

Now, here comes the question that many people find it hard to understand; how much should you save?

They say save until it hurts but I say No. Saving should not hurt. It should be convenient. It should be something you enjoy doing.

The same way you might have made it a tradition to taking 10 percent of your income to church as tithe, is the same way your saving habit should be.

It is recommended to save between 10 and 20 percent of your income either monthly or annually.

Let us say your salary is 30,000 shillings. The best amount to save out of the 30,000 is 3,000 shillings (10 percent).

Saving 6,000 out of 30,000 at the current economy, (if you solely depend on salary) might prove difficult. So I say, out of 30,000 shillings, save 3,000 shillings.

I would advise that you enroll with Amana Capital for their free online course that outlines 7 simple steps to making wealth.

The course will give you simple saving tips, options, and avenues that you can save and for what purpose.

Remember, don’t save until it hurts. Save until you smile.

Read Also: Here are Savings and Investment Options to Consider