Saving 10%

First, get your cash flow under control.  Whatever your income is –  before taxes and other deductions –  save 10% of that amount from every paycheck.  There are lots of different places to put the money that you save.  In fact, the other Fundamentals of Fiscal Fitness fold right into this one.  Whatever it is that you’re able to earn, learn to live on less than you make.  And saving 10% is a good way to make sure you’re doing that.  If you’re just starting your financial life, this saving habit will allow you to reach important financial goals and be financially sound.  If you’re later in your financial life, this saving habit will lessen the likelihood that you’ll run out of money.  So work out a spending plan that allows you to pay taxes and all your other expenses with no more than 90% of what you make. 

 

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