How much money do you think I should save if I make like 500 a check? I get paid weekly?

Question

I have been saving like 350 per check, might go 400 or 425. Plus I pay rent, gas, and food so in total like 700 a month.

MrOracle · Accepted Answer

Save as much as you can, and invest as much as you can.

If you have a job that offers a 401K, and will match your contributions, then if you can afford to, put in the max amount in your 401K that the company will match. That means if they match up to $300/month, if you put in $300, so do they, and that's an extra $300 a month in pay for you that's being invested.

Otherwise, if you don't have a lot of time to study stocks, invest in an Index fund - essentially, you'd be investing in the same stocks, at the same percentages, as the stocks in the Index, so you can easily see how your money is doing, and you won't lose everything if one or two of those stocks tank. Today, because of computerized investing, you can invest virtually any amount and buy partial shares of stock. It also makes sense to put money in once or twice a month, rather than all at once. That way, you're less likely to be impacted by up or down movement of the stocks when buying in.

What you don't want is a bunch of money sitting in a savings or checking account making zero interest - it's actually LOSING value because of inflation. Putting it in an investment is the best way to fight this, and an Index fund TYPICALLY doubles in value every 11 years. Now, the market could crash, and you could lose, say, 60% of your invested value IF you have to cash out while it's still in the toilet, but if you can avoid cashing out, then it will almost certainly recover - it might take a couple of years, but it will recover. You only lose if you cash out when it's down, so it's good to keep a BIT of emergency cash in your savings account, but the excess should be invested if you can.

RealMarek · Accepted Answer

I’m assuming the $500/check is after tax. Your basic living expenses are $160/week. $500 - $160 = $340 savings assuming no discretionary spending. You would do well to save $300/week.

Try to get into something like welding, hvac, or electrician training off hours. There should be student loans or other assistance that can help. Or go to a PT office for an informational interview and see if your previous studies can help you get work in that field. You need to find a way to make more money.

leighbee · Accepted Answer

I don't understand how people can be saving with the proce of things 🥴

MCheetah · Answer

One should always save at least 25% of their paycheck, if they can. If you're only making $500 a check and don't have any major expenses, you should try to save $125 of it each time.

Avicenna · Answer

That depends in large part on your expenses

exitseven · Answer

400 bucks a week would be good if you could do it.

NathanDavis · Answer

as much as you need... to live your mother's house

TroyDT2 · Answer

If you make $500 per week and your expenses are $700 per month, your expenses are $8400 per year, or about $160 per week. How can you save $350 when you would not have that much left over? And how could you save more?

jshm2 · Answer

Depends on your circumstances.  It's always best to save what you can

Anonymous · Answer

Try to save 10% of every paycheck.

Calenderagressive · Answer

HUH YOU GET MONEY ADDED?

How much money do you think I should save if I make like 500 a check? I get paid weekly?

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