If you make an annual salary of $60,000 a year, your earnings are on level with the national average.
Because your money matters, there’s a budgeting strategy to help us all save no matter how much you earn.
It’s called the 50/30/20 rule.
“The 50/30/20 rule means you set aside 50% of your expenses as essential expenses,” financial planner Bjorn Amundson with Quarry Hill Advisors in St. Paul said. ”30% are discretionary, whether that’s eating out or going on vacation, and 20% is savings for the long term.”
Amundson says to reach 20% in savings, try paying off debt, and take half of any raise and put it into a 401 (k).
“20% percent is hard to achieve,” Amundson said. “The American savings rate is less than 4% of their income that’s being saved.”