When you’re 20
This is usually the age of entry into the working world, and, like all beginnings, it tends to be difficult: a time of low income and instability. But you can always save something, for example, start saving 10% of your income to create a habit and gradually increase that percentage up to 25%.
When you are 30
Economists recommend saving one year’s worth of expenses at this age. If you save 20% of your salary over five years you will be able to reach that figure. In your 30s you have more job stability but it is also a time of family changes: buying a car, the arrival of children, mortgage… However, you should never forget to allocate part of your budget to savings, you should try to save around 15%-20% of your income despite the expenses.
In addition, it is an ideal time to start saving in a pension plan, since 40 is approaching and a pension plan needs planning and time to be able to gather a good amount. Also, remember that compound interest works in your favor the sooner you start saving: your annual interest will continue to generate more interest each year, so it’s time to get your act together!
When you are 40
At this time, your income stabilizes and you should be able to increase your savings to 25% of your income for savings. The biggest expense for children is education at this stage, as they are past the stage of birth and growth. It is important to continue putting money aside for a pension plan since this is a stage close to retirement.
When you are 50
It is the time of more savings, the children’s expenses decrease as they are older and begin to work or even become independent. It is usually the stage where you have just paid (finally!) the mortgage. It would be great if you manage to save 30% of your salary, and allocate money to your pension plan, you are getting closer and closer to your retirement!
From the age of 60 onwards
You can slow down, you are close to retirement and, if you have done things right, you have a good cushion to enjoy the retirement of your dreams without stressing about money. Not working and having money: what a dream!
Remember that Coinscrap Finance has several savings goals that are perfect for you depending on your needs, both for the short and long term. What are you waiting for to achieve your financial goals?