Many employees with fixed incomes know what percentage of the salary they could allocate to savings, which is a key fact to organize finances and control overspending. But it is necessary to bear in mind that over the years, as with life, the salary of each person changes, which means that the money saved is not always the same and varies according to age.
It is for this reason that having an indicative idea about the money that we should have reserved according to the stage of life will help when starting to make decisions for the future. However, it is a relative percentage that each one will adapt to the personal situation in which he finds himself.
There are several tips and methods to save over the years and some of these practices change according to the stage in which you are going through, since it is not the same to save at 20 than at 60 years.
Having an idea of how much should be saved according to age helps to meet future goals. Photo: Shutterstock.
To know in detail which saving method to choose according to age, these are some tips divided into four segments: at 20, 30, 50 and 60 years.
How to save between 20 and 30?
Entering adult life involves many challenges, such as internalizing what to invest in and how to save. On these concepts, it is essential to know their difference since they are very important economic decisions.
tag. Savings: This is an amount that is reserved to dispose of in the future. That is, the saver resigns spending that money in the present to have it later.
tag. Investment: It also implies not spending that amount in the present, but it is destined to a financial tool that will bring an extra profit in the future.
"In this decade, it is usual for a part of the labor income to be destined to the payment of the studies and also to the entertainment. However, it is essential to start incorporating the habit of saving, as it leads to financial independence," explains Fátima Maidana, Commercial Manager of Adelantos.com, a technology company focused on personal loans.
The great advantage is that at that age you do not usually have great economic responsibilities, so it is possible to save a percentage of the salary. Experts recommend, when young people's wages are low, to set a savings goal between 5% and 10%.
The earlier retirement is planned, the better the post-60 years will be. Photo: Archive
How to save between 30 and 50?
From the age of 30, in general, you begin to advance in the labor market and gain independence. You already have more professional experience, so salaries are usually a little higher.
These are years in which more ambitious objectives are set and in which some transcendental decisions can be made for the particular economy, such as buying a home or starting a family. Here the savings target could rise by around 15% of the total salary.
Although it will seem premature, it will also be important to start thinking about retirement, contributing to a financial savings product for the future, then it will be easier to increase the amounts as the time of retirement approaches. The earlier retirement is planned, the better the post-60 years will be.
When you reach the age of 40, in general it is the moment of life in which you improve economically and achieve greater stability.
According to Maidana, although the expenses continue, it is likely that between 20% and 25% of the total salary can be reserved. In this decade, saving for retirement should already be a priority goal.
How to save between 50 and 60?
With the years of retirement looming, it is necessary to continue with the strategy of investing and saving. Surely there are fewer fixed expenses and better economic stability is achieved.
With this financial freedom, it is advisable during these years, as far as possible and according to the particular situation of each one, to take 30% of the monthly income to the sum destined for savings.
How to save after 60?
There is no longer any room to save for retirement. It is time to reap the rewards of what has been saved throughout your working life. In this decade and in the following ones, it is advisable to be more conservative in terms of investments and not gamble savings on risky operations. The most appropriate option could be a monetary or fixed income fund combined with mixed fixed income funds.
In short, life will be full of changes and unforeseen events, but beyond external factors, there will only be one way to enjoy each stage with economic stability: through the habit of saving and planning finances well.
By investing the savings, you will be able to protect the money and even obtain extra profits. Photo: Martín Zabala.
How to invest according to each stage of life?
There will be those who are encouraged to go a step further and instead of just saving, they are also willing to invest to make their protected money more profitable. In this case, the different stages in the life cycle of an investor will also be decisive and will be linked to needs, income and savings capacity of each one.
Then you should choose the financial product that best suits these conditions and not the other way around. A young person will have less income than an adult, but will be able to take more risk to obtain greater benefits in the long term.
First stock market steps: between 20 and 30 years. The youngest have much more capacity to take risk because of the possibility given by their time horizon and their low level of responsibilities. This generates a high capacity for savings and the possibility of doing so in the long term. This is why their portfolios should be more oriented towards equities than fixed income.
A profile with these characteristics should be 80% in equities and 20% in fixed income, which would be an aggressive profile.
Investment stability: between 35 and 45 years. When the barrier of 30 years is passed, the position in fixed income increases looking for more tranquility in the investment. It is the stage where fixed expenses increase. The saving capacity drops considerably, the time we have with projection towards the future is no longer the same, so it is recommended to have a well-diversified investment portfolio.
It is a moderate profile that should have 60% in equities and 40% in fixed income.
Pure investment: from 45 to 55 years. At this age, increases in the wage bill generally occur and expenses fall. The basic needs covered allow us to dedicate the pure investment.
Anticipate retirement: from 55 to 65 years. Fixed and family expenses are reduced. We no longer have the responsibility for the children. The expenses are again basic and in many cases only of couples. The stage at which we should start planning retirements and think about retirement.
It should build an ultra-conservative portfolio, 80% in fixed income and 20% in equities.
LN
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