Hello Everyone,
If there's anything that can be learnt from the covid-19 pandemic that happened some two years ago, it is why you should imbibe the culture of setting aside a portion of your earnings into savings or as emergency funds.
Stashing your money somewhere for the future is very vital in ensuring you have the wherewithal to shield whatever unexpected situation or scenario that presents itself or befalls you.
With the current economic conditions we have today, things are quite volatile with inflation on the steady increase globally with people more likely than ever to run into debts.
The best way to be ahead of running into debts or unexpected financial situations is to be diligent by putting certain financial measures.
How much show you save
Now the important question is how much should be set aside as savings. The First question to ask yourself is what is your goal and how much are you willing or is convenient to be locked up in savings. One popular method is the 20% ratio of your earnings while the rest goes into your general cost or expenses.
Applying the 20% rule is a quite realistic for anyone if you properly allocate your budget. You can do more in term of the % set aside depending on your goals. As I said earlier, it's all about your target and why you are saving in the first place.
Conclusion
The significance of saving cannot be overemphasized. It helps in providing some form of security financially. At the end of the day it's all about starting and then cultivating the habit of saving no matter the amount you save. Why some follow the 20% rule, you should figure out what's best and convenient for you.