If you make an annual salary of $60,000 a year, your earnings are on level with the national average.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n
Because your money matters, there\u2019s a budgeting strategy to help us all save no matter how much you earn.<\/p>\n
It\u2019s called the 50\/30\/20 rule.<\/p>\n
\u201cThe 50\/30\/20 rule means you set aside 50% of your expenses as essential expenses,\u201d financial planner Bjorn Amundson with Quarry Hill Advisors in St. Paul said. \u201d30% are discretionary, whether that\u2019s eating out or going on vacation, and 20% is savings for the long term.\u201d<\/p>\n
Amundson says to reach 20% in savings, try paying off debt, and take half of any raise and put it into a 401 (k).<\/p>\n
\u201c20% percent is hard to achieve,\u201d Amundson said. \u201cThe American savings rate is less than 4% of their income that\u2019s being saved.\u201d<\/p>\n