May 13 , 2013
You are single now and your responsibilities are likely to be less. At this age, you do not typically have well-defined goals. Therefore, you may be wondering what to save for, and what to do with savings.
As you grow and move to different life stage your responsibilities and obligations are expected to grow manifold. You may have various financial goals in life and needs to be achieved later. For achieving all your future aspirations and goals you need to save money.
Saving money in simple terms means your expense should be less than your income. For example if you earn Rs 25,000 per month and you spend approximately Rs 20,000 per month you are saving Rs 5,000 every month which is 20% of your income.
As a thumb rule we recommend you to maintain a savings rate of 40% every month. In case you already have a home or vehicle EMI then savings rate needs to be in the range of 20-25%.