How much money should I save?
Yes, that’s the age old personal finance and money question if there ever was one. We all want to be given “the number” to shoot for and desire to know how close (or how far) we are to that target.
If you’re like my wife and I, you wonder whether you are doing it right or not. You are constantly discussing money matters over dinner or during a long car ride. Maybe you worry about how you will be able to afford your own home. If you do own a home, you may worry about having enough money for the mortgage each month.
Then, there’s saving for children. You need clothes, food, diapers, toys, and who knows what else. One day, you will want to send them to college. So, there is saving for that.
Finally, you probably don’t want to work for the rest of your life. I know I don’t. So, you need to plan for retirement somehow. However, that seems so far off and you just put off doing anything about it.
So, depending on your situation, you are likely asking yourself one of two questions. If you aren’t saving, you will want to know how you can get started. On the other hand, if you are saving, you will want to know if you’re saving enough.
In order to answer those questions, you have to know your goals and understand the process to achieve them. Saving money is not a one-size fits all concept. Sure, there are guidelines and we will discuss some of those. But, you need to customize these guidelines to fit your lifestyle and your family’s end game.