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The Ideal Amount of Money that Should be Invested Monthly

The Ideal Amount of Money that Should be Invested Monthly

Sep 27, 2018

The most recommended budget by financial experts is 50/30/20, where you use 50% for living expenses such as food, transportation, and others, then 30% to pay debts, and 20% for savings and investments. We also agree with the recommendations given above which save about 20% of your total monthly income. In the meantime, perhaps you need to see the trusted investment mis selling claim service, when you’ve made a fatal mistake with your investment.

However, this amount is not a fixed number and must be followed, because the financial condition of each person is different. This means that if you have a higher income than the average income earned by the community. The amount of savings and investment set aside each month can be greater than the standard above.

Or if you feel the value is 20% too large with the amount of income earned. A percentage of 20% can be lowered to adjust.

Reason Behind 20% Value Is Ideal Amount

Based on a rough calculation, where you start investing in your 20s with an average yield of 5% a year.

The amount of 20% of the total income earned is an ideal amount to achieve financial independence in the future.

This means that with the investment results you have done since a young age, you no longer need to work all the age to enjoy old age later.

What To Do When You Are Not Able To Save 20%?

When your investment conditions occur do not use a 20% benchmark, but set aside money gradually. However, you need to remember that without commitment and discipline, the investments made will not be able to provide returns that are in accordance with the wishes.

Increase investment to 25-30 percent of the total income you get each month.

The greater the amount that can be set aside, the greater the investment returns will be obtained in the future. So that old age and various financial goals can be fulfilled well.

Interested in applying it?

The steps we stated above are ways that can be applied so that you can achieve various financial goals and prepare for retirement well.