Cash Loans – Cash Advances

How much money should you save with each paycheck?

Just about any financial advisor will tell you: save, save, save. But, just how much money should you be putting away with each paycheck?

Suze Orman, a financial expert and author, recommends having a savings account with at least six months of living expenses. For example, if your monthly bills (rent, insurance, car payment, credit cards payments, food, cash advance payments, etc) total $2,000 per month, you should have a savings account with at least $12,000.

Obviously, you may not have $12,000 just lying around. For most, saving this kind of money will take several months, maybe even years. If you can, experts advise paying off any outstanding payday advance and putting a minimum of 15% of each paycheck into a savings account and DO NOT TOUCH IT.

Example: Let’s assume you get paid twice a month and your paycheck is $1200 (take home).

Total take-home pay per month: $2,400
Total monthly bills: $2,000
If you put away 15% ($300 per month), you’ll have $12,000 in savings in 3 years, 4 months.
If you put away 20% ($400 per month), you’ll have $12,000 in savings in 2 years, 6 months.