Can I Afford to Save 10% of My Salary?

Well if you'd make 10% less than your usual salary, would you be able to live on it?
But if you really think you cannot afford to save 10% of your earnings then just start to save 5%.
The thing is to start a new habit of paying yourself first, and see how much you have got left to live.

This would be an ideal distribution of monthly income:

Salary:

Savings: up to 20%

Entertainment, leisure: 10%-30%

Current-expenses: 50%-80%

Look: First is the savings, pay yourself first and then you will see for the rest.

Where to invest money?

•      Savings books
•      Safe financial products

Image courtesy of [ddpavumba,] / FreeDigitalPhotos.net

1. Savings books: they do not produce much interests, the advantage is that the interest is guaranteed and you can withdraw money at will. Is a good way to start or when you have not that much money.
2. Financial products without risks: they get interesting enough when you find a product that yields a 4, or 4.5% interest, the kind of product depends on the country you are. Here in France there are life insurances, with the start minimum fund of 1000 euros. Well, this must be studied carefully in each case ad watch the evolution of the interest, and is even more beneficial if tax deducted for

In any case, do not forget that:

I'm no expert on finances, this is only my advice.
The idea is to get out of credit slavery on the road to financial freedom.

How much money should I put in emergency savings?

The system is simple, just put the equivalent to 6 months of expenses, and then start saving  between 10% and 15% each month.
In round numbers: If your monthly expenses are up to $1000, start saving up to $6000.
This amount can keep you away from asking for a credit when you are in need or it can be a small project to buy you some important thing.