Q. What is the right amount to save?
My belief is that EVERYONE should be saving no less than 20% of your income. If your goal is achieving financial independence, then you should be aiming for about 50%.
Q. That’s crazy.
You can boost your savings this month by just one percent. To calculate the one percent, just look at your income and go two decimal points to the left.
If you are earning $3,000, one percent is $30
If you are earning $5,000, one percent is $50
If you are earning $10,000 one percent is $100
Boost by one percent the next month. Do it for the following months, and within a year, you will be saving 12 percent of your earnings. If you continue with this trend, then you will find yourself saving 24% after two years.
If you do this for about four years, you will be at 50% of your income.
You can join the One Percent Challenge Group on Facebook and chat with other people doing it.