ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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5%
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10%
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20%
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15%
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Detailed explanation-1: -50/30/20 rule Here’s a final rule of thumb you can consider: at least 20% of your income should go towards savings. More is fine; less may mean saving longer.
Detailed explanation-2: -“Save 10 percent of your income.” Putting away some money on a regular basis-even if it’s a small amount-can help you manage unexpected expenses and emergencies and reach your financial goals.
Detailed explanation-3: -Budget 20% for savings Saving can include opening a deposit account to save for an emergency fund, a down payment, vacation or any other larger goal. It could also mean contributing to an investment account or a retirement plan, like a 401(k) or IRA. You can also allocate part of this section to paying down any debt.
Detailed explanation-4: -Fidelity’s guideline: Aim to save at least 15% of your pre-tax income each year for retirement, which includes any employer match.