Am turning 30 this year. Not married, earn about 4k a month. I want to buy a house in a couple of years. How much would is good practice to put aside for retirement and how much toward the housing?

No fix

Hi!

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Emergency savings typically has 4-6 months of your expenses to be used in case of an unforseen situation. In order to make my budget, I prefer the 40/30/20/10 rule. 40 percent of the income can be used in regular monthly expenses such as rent, food, electricity etc. Not more than 30 percent shall be used to pay off loans including mortgage, education etc. 20 percent will be used to prepare for the future like retirement in long term investments. The remaining 10 percent will be used to cover inurance needs.

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In this case, since you want to buy a house in the future, you can redirect you 30 percent for loan repayment in safe investment options so that you can buy a house with it in the near future. Taking too much risk in the portion will be too risky as investments are volatile in the short term.

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