yeah.. it's a longshot but i figured why not. i'm starting a new job on Tuesday. it's sorta big for me, and i'll be making more than i did in previous jobs.
here's the problem.. after fixed expenses (rent, utilities) i'm not sure how to allocate this income. i managed to build up some savings in my previous jobs, but i'd always eat into them due to lack of discipline. i've posted the gist of my questions below. i'm a little inexperienced with finances so some of these might be pretty basic:
- i know there's a rule out there that 10% of income should go into a risk-free interest bearing investment, like a bank account. do most people put 10%? (note: the rule i know is to save 10% before any expenses, including tax)
- if you decide to save more than 10%, how do you (personally) divide your savings? for example, 10% can go into a bank account, 10% into a high risk/high interest fund, and 5% under the mattress in cash (25% savings total).
- do you try to keep your savings above a certain level? say maybe $1000 minimum in the cheque account, $5000 in savings, etc?
- for the previous question, i figured another strategy would be to build up some reserves in a bank account (a few thousand), then once i reach a certain $ value, stick everything i'd normally save into a high risk/high interest account. good idea? when should a guy feel "comfortable enough" to start thinking about riskier options than a savings account?
feel free to post any info or questions on organizing finances. being the internet (and SRK), you can't expect to receive (or be taken as seriously as) an unqualified opinion from a financial advisor... but maybe you'll get a little help.
i don't have a mortgage, wife and kids, or car to pay off.. obviously some of you guys will. that's a different ball game to me, but i'd be interested in hearing how you guys juggle things.