What percentage of your income should you be saving from your take home pay?

Hi anon,

As a general guideline aim to save/invest at least 20% no matter what stage of your working life you are in. But the more the merrier. While your earning capacity may be low when you first start working, never underestimate the power of compounding, or that fact that saving 60% of your starting salary at 25 years old could be the same as you saving 20% of your starting salary at 35 years old (simply because more responsibilities step in), plus you would have 10 more years to have the money grow for you.

In the end, just ensure that you're taking baby steps towards saving or investing. And if you can't hit 20%, not all is lost. It probably means that there is room to either 1) increase your salary because you are under paid or 2) cut away at expenses because there's too much outflow somewhere.​​​

When you're single, 60%. When you're married 40%. When you have kids 20%.

The more you can, the better of course.