Saving one third what you earn monthly is not that hard, isn't it ?

[og kush420]

The topic is interesting and necessary - the formation of a financial cushion / reserves for the implementation of some plans.
And the model is not bad. Although I would add as one of the mechanisms of achievement - this is the rejection of bad habits and unnecessary purchases.

But what I do not agree with is to evaluate in a specific amount, for example, dollars. Different countries have completely different living conditions. And somewhere 3000 dollars a month is a small salary, in other countries it is an unattainable amount.
Therefore, the correct estimate is the percentage of income, and probably some coefficient, linked to the average acceptable level of income in the country. Then you get a realistically calculated level of monthly deductions to achieve some goal. And comparing $ 300 for the Congo and Switzerland, for example, is a useless topic.

you are right Dr Beer
we must all know how to save money and that too at the early age. Over spending is not a good thing
now parents are trying to make their kids more practical
they are trying their kids to learns new skills

[1714993413]

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[serjent05]

The topic is interesting and necessary - the formation of a financial cushion / reserves for the implementation of some plans.
And the model is not bad. Although I would add as one of the mechanisms of achievement - this is the rejection of bad habits and unnecessary purchases.

But what I do not agree with is to evaluate in a specific amount, for example, dollars. Different countries have completely different living conditions. And somewhere 3000 dollars a month is a small salary, in other countries it is an unattainable amount.
Therefore, the correct estimate is the percentage of income, and probably some coefficient, linked to the average acceptable level of income in the country. Then you get a realistically calculated level of monthly deductions to achieve some goal. And comparing $ 300 for the Congo and Switzerland, for example, is a useless topic.

I agree that the amount to be saved is subjective.  It depends on the amount of the wage minus the amount need for needs. Most employees oftentimes have a shortage reason why they need to borrow money in order to patch what is needed then they will pay them with their salary and bonuses.  Let alone this 1/3 of the monthly earnings, this is too much IMO.

If you are in twenties or early thirties and remain single, earn $3,000 after tax per month, you will probably save $1,000 if you, let's say, spend $500 to $800 on rental, a guest bedroom in a shared house/apartment, $500 on food, $50  on utilities, $150 on phone/internet bills, $400 on commuting costs or gas/maintainance if you have a used car, $200 on occasional entertainment or others. This $1,000 savings will allow you to invest or place a house down payment when time is ripe. Is this possible based on where you live ?

It's not possible where I live because $800 per month is considered a very good salary here, so saving $1k is out of question. But I think I can contemplate the possibility of saving 30% of your income. It's impossible in my opinion. It's too much. And those guys earning $3k per month, I'm sure they are living in places where everything, food, electricity, medical care and stuff, everything is more expensive there, so, they couldn't afford saving that much.

1/3 of our monthly income is not too much if we earn 4x of our basic needs plus bills.  But for those who earned just enough for the bills and basic needs, the 1/3 salary savings is impossible.

[GideonGono]

If you are in twenties or early thirties and remain single, earn $3,000 after tax per month, you will probably save $1,000 if you, let's say, spend $500 to $800 on rental, a guest bedroom in a shared house/apartment, $500 on food, $50  on utilities, $150 on phone/internet bills, $400 on commuting costs or gas/maintainance if you have a used car, $200 on occasional entertainment or others. This $1,000 savings will allow you to invest or place a house down payment when time is ripe. Is this possible based on where you live ?

Actually it all depends on your expenses,cost of living and how much you are earning or getting paid.
Some would really find it hard to save one third of their earnings since they have so much on their plate even in the age bracket that you have given.
There are also times that people tend to spend their money on things that would help them relax or relieve some stress from their work and believe me those expenses are needed in order to survive or be motivated.

[DrBeer]

The topic is interesting and necessary - the formation of a financial cushion / reserves for the implementation of some plans.
And the model is not bad. Although I would add as one of the mechanisms of achievement - this is the rejection of bad habits and unnecessary purchases.

But what I do not agree with is to evaluate in a specific amount, for example, dollars. Different countries have completely different living conditions. And somewhere 3000 dollars a month is a small salary, in other countries it is an unattainable amount.
Therefore, the correct estimate is the percentage of income, and probably some coefficient, linked to the average acceptable level of income in the country. Then you get a realistically calculated level of monthly deductions to achieve some goal. And comparing $300 for the Congo and Switzerland, for example, is a useless topic.

you are right Dr Beer
we must all know how to save money and that too at the early age. Over spending is not a good thing
now parents are trying to make their kids more practical
they are trying their kids to learn new skills

One of the problems of modern society is the unreasonable waste of money, for things that do not really solve any noticeable problems or tasks for us.
This "habit" has developed over the past 10-20 years. There are a lot of "fashionable" things that everyone thinks is "prestigious" or "revealing". Marketing and advertising - they constantly say "buy, buy." And here another problem makes itself felt - the low financial literacy of the population, and first of all the poor or close to it. The problem is that they are trying to change their status with such a purchase ... And the basis of the problem is self-deception, it does not give any changes, except for increasing costs. People from a financially more developed society, who understand what money is, its value and the ability to manage it, restrain them from such unreasonable spending. Although among the financially literate, there are people who spend money without thinking much

[og kush420]

you are right Dr Beer
we must all know how to save money and that too at the early age. Over spending is not a good thing
now parents are trying to make their kids more practical
they are trying their kids to learn new skills

One of the problems of modern society is the unreasonable waste of money, for things that do not really solve any noticeable problems or tasks for us.
This "habit" has developed over the past 10-20 years. There are a lot of "fashionable" things that everyone thinks is "prestigious" or "revealing". Marketing and advertising - they constantly say "buy, buy." And here another problem makes itself felt - the low financial literacy of the population, and first of all the poor or close to it. The problem is that they are trying to change their status with such a purchase ... And the basis of the problem is self-deception, it does not give any changes, except for increasing costs. People from a financially more developed society, who understand what money is, its value and the ability to manage it, restrain them from such unreasonable spending. Although among the financially literate, there are people who spend money without thinking much
[/quote]
Changing life style is the biggest problem of an aging person. When we reach at the stage when change is not acceptable.
then it not easy to change the life style of a person.

[DrBeer]

The topic is interesting and necessary - the formation of a financial cushion / reserves for the implementation of some plans.
And the model is not bad. Although I would add as one of the mechanisms of achievement - this is the rejection of bad habits and unnecessary purchases.

But what I do not agree with is to evaluate in a specific amount, for example, dollars. Different countries have completely different living conditions. And somewhere 3000 dollars a month is a small salary, in other countries it is an unattainable amount.
Therefore, the correct estimate is the percentage of income, and probably some coefficient, linked to the average acceptable level of income in the country. Then you get a realistically calculated level of monthly deductions to achieve some goal. And comparing $ 300 for the Congo and Switzerland, for example, is a useless topic.

I agree that the amount to be saved is subjective.  It depends on the amount of the wage minus the amount need for needs. Most employees oftentimes have a shortage reason why they need to borrow money in order to patch what is needed then they will pay them with their salary and bonuses.  Let alone this 1/3 of the monthly earnings, this is too much IMO.

If you are in twenties or early thirties and remain single, earn $3,000 after tax per month, you will probably save $1,000 if you, let's say, spend $500 to $800 on rental, a guest bedroom in a shared house/apartment, $500 on food, $50  on utilities, $150 on phone/internet bills, $400 on commuting costs or gas/maintainance if you have a used car, $200 on occasional entertainment or others. This $1,000 savings will allow you to invest or place a house down payment when time is ripe. Is this possible based on where you live ?

It's not possible where I live because $800 per month is considered a very good salary here, so saving $1k is out of question. But I think I can contemplate the possibility of saving 30% of your income. It's impossible in my opinion. It's too much. And those guys earning $3k per month, I'm sure they are living in places where everything, food, electricity, medical care and stuff, everything is more expensive there, so, they couldn't afford saving that much.

1/3 of our monthly income is not too much if we earn 4x of our basic needs plus bills.  But for those who earned just enough for the bills and basic needs, the 1/3 salary savings is impossible.

1/3 or 1/4 or 1/10 is not the point.
My emphasis would be this:
- Borrowing money in the form of loans to cover "ordinary" needs is a bad way to go. You borrow $1, but you will owe $1 plus interest back. Which means you'll have a bigger need to borrow tomorrow. And it's a vicious circle. The solution is to change your income and/or change your consumption.
- You need to constantly strive to improve your financial health. Both yourself and your children. And the way to do that is the way to develop your skills. There is always time and opportunity to be found. Even if it's very hard. Otherwise nothing will change. It's very simple - it's foolish to expect change if you keep doing the same thing every day.
- You need to limit unreasonable consumption - from food to things. A lot of what you acquire has no real value in your life
- it is necessary to always think about the FUTURE. You can't live "here and now"!
- It's necessary to form a "financial cushion", this is just about 1/3, 1/4, 1/10 ...
- It is necessary to form a set of passive income

It all seems a bit complicated, but ... you have to do it and it's not so hard! You may not be able to do it all at once! But without changing anything your life will stay the way it is ...

[YUriy1991]

Whell, The amount is high  ... Maybe, as you said, it is very easy to work around this and we can even collect more than that target. I think each of them has a different income generated. the higher the income, the higher the cost of living and that's real. Incoming money sometimes does not match expenses. Yes. just an example from you along with the numbers, on the other hand, whatever it is, everything must be prepared, how to survive if there is no preparation. Yeah. Useful topic from you.

[bettercrypto]

If you are in twenties or early thirties and remain single, earn $3,000 after tax per month, you will probably save $1,000 if you, let's say, spend $500 to $800 on rental, a guest bedroom in a shared house/apartment, $500 on food, $50  on utilities, $150 on phone/internet bills, $400 on commuting costs or gas/maintainance if you have a used car, $200 on occasional entertainment or others. This $1,000 savings will allow you to invest or place a house down payment when time is ripe. Is this possible based on where you live ?

Maybe that depends on the fiat value of each individual, because that kind of value is really big. For example, in any part of the Asian country, it's too big, 3000$ a month. And if it's here in our country, I might only be able to use $800 a month.

And the 2200$ that will be left for me is for sure that I can keep it and can use it in DCA for bitcoin. And that's all I'll do until the right time comes for the bull run that I'm targeting, which is the price of the bitcoin market. And then I will only sell it when it reaches 100k$ each.

[kojektea]

if it is useful i will do it. say if we are rich people with an income of $ 10000 per month I think it is not bad to give charity to people who need some or even only a third. because saving money and accumulating it is not a good thing and also the money we accumulate will be inflation. if you spend it just to buy luxury goods then it is also a loss, because the selling price in the future will not be worth it unless it's gold.

[redwine49]

One of the problems of modern society is the unreasonable waste of money, for things that do not really solve any noticeable problems or tasks for us.
This "habit" has developed over the past 10-20 years. There are a lot of "fashionable" things that everyone thinks is "prestigious" or "revealing". Marketing and advertising - they constantly say "buy, buy." And here another problem makes itself felt - the low financial literacy of the population, and first of all the poor or close to it. The problem is that they are trying to change their status with such a purchase ... And the basis of the problem is self-deception, it does not give any changes, except for increasing costs. People from a financially more developed society, who understand what money is, its value and the ability to manage it, restrain them from such unreasonable spending. Although among the financially literate, there are people who spend money without thinking much

it is hard for me to cut my spending. it's my weakness but it's good for the economy and entrepreneurs. i literaly giving money for them, if not they will go bankrupt.
at least that is what i do

[DrBeer]

One of the problems of modern society is the unreasonable waste of money, for things that do not really solve any noticeable problems or tasks for us.
This "habit" has developed over the past 10-20 years. There are a lot of "fashionable" things that everyone thinks is "prestigious" or "revealing". Marketing and advertising - they constantly say "buy, buy." And here another problem makes itself felt - the low financial literacy of the population, and first of all the poor or close to it. The problem is that they are trying to change their status with such a purchase ... And the basis of the problem is self-deception, it does not give any changes, except for increasing costs. People from a financially more developed society, who understand what money is, its value and the ability to manage it, restrain them from such unreasonable spending. Although among the financially literate, there are people who spend money without thinking much

it is hard for me to cut my spending. it's my weakness but it's good for the economy and entrepreneurs. i literaly giving money for them, if not they will go bankrupt.
at least that is what i do

Managing your "wants" is one of the hardest things in our lives, I agree, I know it myself
But believe me - if you learn to control your desires, the rest won't be a problem for you

[Betwrong]

~

~ It's not possible where I live because $800 per month is considered a very good salary here, so saving $1k is out of question. But I think I can contemplate the possibility of saving 30% of your income. It's impossible in my opinion. It's too much. And those guys earning $3k per month, I'm sure they are living in places where everything, food, electricity, medical care and stuff, everything is more expensive there, so, they couldn't afford saving that much.

1/3 or 1/4 or 1/10 is not the point.
My emphasis would be this:
- Borrowing money in the form of loans to cover "ordinary" needs is a bad way to go. You borrow $1, but you will owe $1 plus interest back. Which means you'll have a bigger need to borrow tomorrow. And it's a vicious circle. The solution is to change your income and/or change your consumption.
- You need to constantly strive to improve your financial health. Both yourself and your children. And the way to do that is the way to develop your skills. There is always time and opportunity to be found. Even if it's very hard. Otherwise nothing will change. It's very simple - it's foolish to expect change if you keep doing the same thing every day.
- You need to limit unreasonable consumption - from food to things. A lot of what you acquire has no real value in your life
- it is necessary to always think about the FUTURE. You can't live "here and now"!
- It's necessary to form a "financial cushion", this is just about 1/3, 1/4, 1/10 ...
- It is necessary to form a set of passive income

It all seems a bit complicated, but ... you have to do it and it's not so hard! You may not be able to do it all at once! But without changing anything your life will stay the way it is ...

I agree with everything you said except the last sentence. There is a saying in economics: "If there's no growth then there's no life in it." If we are not making things better then our life will not stay the way it is, it will be getting worse. So, basically, we have no choice but to grow. We should be improving our knowledge, our income should be getting bigger, and our living conditions must our living conditions must improve along with it. We must be moving forward, we can't afford to stand still.

[Fredomago]

If you are in twenties or early thirties and remain single, earn $3,000 after tax per month, you will probably save $1,000 if you, let's say, spend $500 to $800 on rental, a guest bedroom in a shared house/apartment, $500 on food, $50  on utilities, $150 on phone/internet bills, $400 on commuting costs or gas/maintainance if you have a used car, $200 on occasional entertainment or others. This $1,000 savings will allow you to invest or place a house down payment when time is ripe. Is this possible based on where you live ?

Maybe that depends on the fiat value of each individual, because that kind of value is really big. For example, in any part of the Asian country, it's too big, 3000$ a month. And if it's here in our country, I might only be able to use $800 a month.

And the 2200$ that will be left for me is for sure that I can keep it and can use it in DCA for bitcoin. And that's all I'll do until the right time comes for the bull run that I'm targeting, which is the price of the bitcoin market. And then I will only sell it when it reaches 100k$ each.

I agree, but with that huge amount of income you need to be in a top position or you have a good business to earn such amount, it's doable I mean saving good portions of your monthly salary will be depends from your needs and not from your wants, I see the point where if you can control your finances your savings can be turn to a good investment.

It's more about how good is your will in fulfilling your goals and how good are you in controlling your finances.

[Dickiy]

Managing your "wants" is one of the hardest things in our lives, I agree, I know it myself
But believe me - if you learn to control your desires, the rest won't be a problem for you

In fact, it is difficult to end a desire because it always follows the times. Sometimes it is difficult for a person to distinguish between a need and a desire. When I asked them, they always defended themselves and said that it was a necessity, even though on the other hand it was clear that they didn't need it. No matter how much money we have, it will never be enough if we always pursue more and more desires. I often see many rich people who feel unhappy in their lives, because maybe they are always chasing something that they don't really need. One of the best ways is to be grateful for what we have, buy the things we need, and start living a simple life by not chasing something that is beyond our means or something that is not very useful.

[og kush420]

Managing your "wants" is one of the hardest things in our lives, I agree, I know it myself
But believe me - if you learn to control your desires, the rest won't be a problem for you

In fact, it is difficult to end a desire because it always follows the times. Sometimes it is difficult for a person to distinguish between a need and a desire. When I asked them, they always defended themselves and said that it was a necessity, even though on the other hand it was clear that they didn't need it. No matter how much money we have, it will never be enough if we always pursue more and more desires. I often see many rich people who feel unhappy in their lives, because maybe they are always chasing something that they don't really need. One of the best ways is to be grateful for what we have, buy the things we need, and start living a simple life by not chasing something that is beyond our means or something that is not very useful.

That is correct - one should learn to manage between wants and needs but man is selfish by nature. The more you earn the more material they feel like having for better living style.

[umbara ardian]

Saving a third of your income can be a challenge for many people. After all, everyone's financial situation is different. Factors such as rent or mortgage payments, debt obligations, health care costs, child care costs, and supporting family members can significantly affect your ability to save a substantial portion of a person's income. So consider the full financial picture when setting a savings goal. Instead of focusing only on a specific percentage, each person should evaluate his or her income, expenses, and financial priorities to determine a viable savings amount that is appropriate for his or her own circumstances.

[STT]

One tenth for charity is the measure some have in some parts of the world or in some faiths.  Regardless of intentions for those savings to give away or to add to your own long term security via savings or investment, we can compare one third to that very long term rule of always one tenth when rich and in good health to cover those unwell etc.    Some only would regard saving for family or very close friends in this way but its all the same kind of thing, never spend all your money because it makes you vulnerable to do so and one day you will over extend past your long term capabilities; we can all get ill of course and require rest not able to work so save at least one tenth is sensible by any measure.
   One third I dont think most will do, Ive heard of a few who aim to save live frugally and then retire to leave horrible stress filled jobs and switch to nicer lower paid out of city jobs.  Thats rare, we live in a consumerism based society and it is encouraged by most political strategies to stoke GDP growth and the election cycle vs recession etc.   This whole dynamic is actually very relevant to BTC, they wont reverse QE, they wont repay the debt and sensible economics of saving properly wont exist any time in recent years and I hear this every day.  Next year is the US election so they wont entertain the idea of not boosting an economy to win that election etc.  its definitely a factor in BTC price year to year.

[BRINIRHA]

Whell, The amount is high  ... Maybe, as you said, it is very easy to work around this and we can even collect more than that target. I think each of them has a different income generated. the higher the income, the higher the cost of living and that's real. Incoming money sometimes does not match expenses. Yes. just an example from you along with the numbers, on the other hand, whatever it is, everything must be prepared, how to survive if there is no preparation. Yeah. Useful topic from you.

well the amount mentioned by the OP is indeed quite large when viewed and compared to normal income in developing countries which rarely even approaches $1000 usd. But the important thing to remember is whether our basic needs for one month are far less than income or even far greater than income or maybe it's balanced. These points may not be the same between one another who even live in the same country. because the salary of everyone who is different profession is certainly not the same. but the price of the necessities of life may be the same. it's just that a luxurious lifestyle or a simple lifestyle may also be the difference.

I live in a developing country. but sometimes I can still save 1/3 of my money. but it is not fixed every month. because sometimes the necessities of life can go down and up. or many unexpected needs arise. the point is saving 1/3 can be done for some people but also not for others. but it would be great if we could do that. and can continue to invest and save consistently every month. But reality is sometimes not as easy as planned.

[slapper]

~snip~

1/3 or 1/4 or 1/10 is not the point.
My emphasis would be this:
- Borrowing money in the form of loans to cover "ordinary" needs is a bad way to go. You borrow $1, but you will owe $1 plus interest back. Which means you'll have a bigger need to borrow tomorrow. And it's a vicious circle. The solution is to change your income and/or change your consumption.
- You need to constantly strive to improve your financial health. Both yourself and your children. And the way to do that is the way to develop your skills. There is always time and opportunity to be found. Even if it's very hard. Otherwise nothing will change. It's very simple - it's foolish to expect change if you keep doing the same thing every day.
- You need to limit unreasonable consumption - from food to things. A lot of what you acquire has no real value in your life
- it is necessary to always think about the FUTURE. You can't live "here and now"!
- It's necessary to form a "financial cushion", this is just about 1/3, 1/4, 1/10 ...
- It is necessary to form a set of passive income

It all seems a bit complicated, but ... you have to do it and it's not so hard! You may not be able to do it all at once! But without changing anything your life will stay the way it is ...

Hey, high-five for shedding light on this crucial adulting thing - the art of managing the green and avoiding the credit abyss. It's a cold shower for those of us spiraling in the vicious cycle of borrow-to-spend. The salvation lies in a simple two-step: get more ka-ching, splash less. Now, revving up the cash engine isn't rocket science. Got a knack for something? The gig economy is a goldmine! Websites like Upwork, Fiverr, Etsy are like your personal online marketplace. Put your skills on the digital catwalk and let them strut their stuff!

But, the dough ain't gonna last if you keep draining it like a leaky faucet. Time to adult-up and manage that spending. Trusty sidekicks like Mint, YNAB, and Personal Capital are here to help. They're like your personal finance Jedi, keeping the spendthrift Sith at bay. Talking about that "financial cushion" - size matters! And it's custom-fit, baby - based on your lifestyle and how heavy your paycheck weighs. Passive income? We got you covered. Peer-to-peer lending, stock dividends, REITs - might sound a bit "Matrix-y", but once you take the red pill and understand the basics, it's all about cruising on the highway of financial stability.

[woez]

Saving a third of your monthly income can be a realistic goal, but it depends on factors such as where you live and your expenses. If you earn $3,000 per month and have moderate expenses such as rent, food, utilities, phone bills, travel, and occasional entertainment, it's possible to save $1,000.

However, it's important to consider the cost of living in your area and your personal financial obligations. It also requires budgeting and the discipline to save consistently to create a viable savings plan.