Most people carry a lot of debt and very little savings. The goal is just the opposite: You should save 15% of your pretax income via super contribution, and an additional 20%–25% of your after tax income. #savings#investment#coffee#homeloan#budget The key is to make a budget and stick to it.
I have a always lived on a strict budget 50% of my after tax income goes to my mandatory household bills: Mortgage, car payment, utilities, etc. I then try to save on the things I buy consistently like petrol, groceries, household stuff, and major purchases and investing that money.
For example, by not spending $10 a day for lunch or overpriced coffees you’ll save $200 a month. At the end of 12 months, you’ll have $2,400. If you save an additional $50 every month, you’ll end up with $3,000. Big deal right? Not impressed? Imagine you are a making a higher level of income, and multiple your savings amount by 10 to $2,500 a month. That’s a $70,000 difference! Imagine that. That can be the deposit on your new home.
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