Saving 10% of your after-tax income, a person can consistently set aside money. The 10% rule, is a savings tool and a good basis for starting to save. Personally, this rule I use often to help save and increase investable amounts. This strategy you can use any percentage that works for you but pick a number that fits your goals.
Adjusting
The reason you might want a higher or lower percentage saved depends on the level of income. A lower income could adjust the percentage or having higher saving goals are both good examples. Being able to adjust and plan for any difficulties that may arise.
What to do with those savings?
There are multiple options for those savings, creating a savings account, an emergency fund, or a retirement account. This method can help an individual plan for their future for retirement, big purchase, or unexpected events.
There are multiple good options for saving accounts, if you do not mind using a bank online, there are multiple options with competitive rates.
Savings Account
This link to Marcus by Goldman Sachs can boost the savings rate up an extra 1% for a 3-month period from when opening a new account. When following the referral link please read all information that is offered and read through the links that are offered. There are maxima limits that you can deposit at that increased rate, FAQs | Marcus by Goldman Sachs®. For any misunderstandings we defer to the information that is offered and all of the links that are offered on Marcus by Goldman Sachs
There are multiple bank accounts that pay a good rate including Ally, Marcus, Barclays are just some that offer saving account apy of above 4.5 percent (as of 2/2/2024).
Using bank accounts with high interest rates can help you make money with your money. Collecting interest for you, while you figure out your next step is a smart decision.
Review all rules and fees for saving accounts to understand what charges and transfer issues could occur. Also, there might be minium amount or a maximum amount in the savings account for the advertised rate.
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