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im on my way to set aside 7 months full pay, I'm currently living at home and don't have to pay for anything so my salary is just saved up. I also work remotely and I'm planning on leaving next year and working remotely abroad. Would love some insights about my plan.
I'm going to have 7 months full pay aside and will just keep that and not touch it, basically as a safety net and it's a good amount to me so I feel safe having that lol. Then after those 7 months I'll be spending 70% of my salary on everything(rent food ect), 15% I'll have in case I need more, and the other 15% will be going in my savings account not to be touched . And that 7 months pay I have aside will also not be touched.
Any advice or feedback on this?
I've also seen a lot of people saying to always save 30% monthly but since I have those 7 months saved aside I feel safe financially.
One- where the FUCK do you live and what the FUCK do you do to have 7 MONTHS full pay!? Two- never be to comfortable especially when it comes to finances- you never know what can happen.a recession can hit, etc. Always, ALWAYS, save more than you "need" to.
I've always saved way more money, and thank God I did, because I got hurt, got divorced, and had to pay enormous doctor bills. I couldn't work for 4 years after my accident. Keep saving, girl. You never know when you'll need it.
7 months is great for an emergency fund. On top of that you should have a retirement account you should start saving into. Vanguard offers one of those if you’re in the americas or Europe.
If you're lucky enough to be setting that much away, I would recommend saving 9 months worth. then once you've saved that, if possible, redirect all that money you were saving to investments, &/or other savings. Consider stocks, crypto, and other types of investments. Educate, learn and research/ I'm not sure what level your income is at but you're in a fortunate position at the moment so get educated an dhow to make that money grow. You can spend it all if you want, but if I were you I would enjoy some of it (money should be fun) AND be smart with it. not paying rent/mortgage is a huge gift you have right now. Maybe consider getting into the property game if you're able. Re 'people say save 30%', I think it's good to get into a habit of saving/budgeting. whatever the amount you choose is up to you.