CosmicBiscuit
CosmicBiscuit

How much should I be saving/investing in a month

Hi, I am 25 years old and I live in Bangalore. I make around 1.35L pm and I’m struggling to understand how much to save or invest in a month. I understand the 50 / 30 / 20 rule but feel like using 50% of my income on needs is a lot.

I also do not understand if I should have a different pot for savings (liquid) and investments or if I should be putting aside all my extra money on investments. Also how much is a decent amount to spend on rent + food + lifestyle etc.

I like living open heartedly but also feel immensely guilty after splurging too much.

How much do you think I should be saving in a month, realistically?

7mo ago
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GoofyNugget
GoofyNugget

Agreed with @CouchPotato , in the early age, save more than 50%, create an emergency fund with 6-8 months runway. And rest you can invest in Large Cap Or Multip Cap mutual funds or simply just invest in Nifty Bees.

But the important factor is being consistent with your savings, please make sure that you have these SIPs regularly (use small case Or any MF investment apps).

And one suggestion I have always got from seniors is to save before you buy something luxury/high range needs, like a macbook/bike/vacation. If you have a goal to achieve/buy any of these, start saving for them 8-10 months in advance and then go about it, that way it won't impact your regular SIPs and you will subconsciously develop a better way to manage your money.

CosmicBiscuit
CosmicBiscuit

This is helpful. Appreciate u, thanks

JazzyQuokka
JazzyQuokka

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CosmicBiscuit
CosmicBiscuit

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WobblyDumpling
WobblyDumpling

If you are single I would suggest savings/investing can be around 50-60% with your in-hand salary if you do not splurge too much. Do it for a couple of years and once you have more responsibilities the percentage can come down

TwirlyNarwhal
TwirlyNarwhal

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