Hello there!
Based on the ever so popular 50-30-20 rule, 50% of our salary would go to expenses, 30% will be to our wealth account (aka for our investment), and 20% is for our savings.
Based on what you've mentioned, I assume that you're referring to only have 28% after deducting liabilities (with no savings).
Personally, I believe there is no hard and fast rule for the allocation of our salary. That being said, I feel that that you might want to accumulate a sum of money as your emergency fund first, before looking into starting any investments.
After building up your emergency fund (~3-6 months' worth of living expenses, or even 12 months to be safe in this economic climate), you can look at investments.
With that, I might allocate 10-15% of the remaining 28% to my wealth account, so that I would still be able to have some money at the side as my savings as my salary comes in every month.
That's my take for this!
Hello there!
Based on the ever so popular 50-30-20 rule, 50% of our salary would go to expenses, 30% will be to our wealth account (aka for our investment), and 20% is for our savings.
Based on what you've mentioned, I assume that you're referring to only have 28% after deducting liabilities (with no savings).
Personally, I believe there is no hard and fast rule for the allocation of our salary. That being said, I feel that that you might want to accumulate a sum of money as your emergency fund first, before looking into starting any investments.
After building up your emergency fund (~3-6 months' worth of living expenses, or even 12 months to be safe in this economic climate), you can look at investments.
With that, I might allocate 10-15% of the remaining 28% to my wealth account, so that I would still be able to have some money at the side as my savings as my salary comes in every month.
That's my take for this!