What are you saving for? Retirement? A place to live or own? A car or a vacation? If you are single and have no obligations i.e. bills to pay then you are usually advised to save thee to six month's living expenses. Right now - you get less than one percent return for saving your money - which is a national disgrace. You should quit saving once you have your emergency stash and begin investing. Buy share of companies that pay a dividend - you will do much better.
No-one here will tell you but "saving" right now is a waste of time - the banks are laughing at you and everyone else who has a savings account or CDS. The mighty Chase Bank is paying 0.01% for a "savings account" right now. Disney is paying a 1.10% dividend yield - that's over a hundred times better!
If you are really saving 15% of your income at age 21 you are already SO far ahead of everyone else your age that you are going to die a rich man! (But hopefully not for a long, long time, right?)
Most Americans don't even THINK about "the future" until they are in their 30's...and with investments, time is the ingredient that matters most...
At 21, you should be investing your Savings exclusively in low-expense Growth stock Mutual Funds...the general "rule-of-thumb" is to subtract your age from 120 (which would give you 99), then invest that percentage of your Savings in stock, and the balance in Bonds or cash...
I am told it 20%. If affordable ,you are do good. blessing blessing
The least I put in is 15 percent. I'm almost 21, and I was wondering what the recommended amount should be.
