Try the 60 percent solution, with a twist
No matter where you are in your retirement journey, Sharon Epperson, senior personal finance correspondent and lead contributor to CNBC's Invest in You, recommends the 60 percent solution. This approach breaks down like this: 60 percent of your gross income is allocated to "committed expenses" like housing, food, groceries, debts, and taxes; 10 percent of your income goes into high-yield savings account for emergencies and short-term savings; and another 20 percent of your income should go toward long-term and retirement savings. As for the remaining 10 percent, in normal times, that would be earmarked for "fun money" to go out to dinner, get your nails done, or play a round of golf, Epperson shares. However, the pandemic has changed that. "Now, what's 'fun' may be what brings you peace of mind, including not being in debt, feeling financially stable, and having enough money in the bank to pay your expenses in an emergency," she says. So you may want to direct that last 10 percent to a bank savings account as well. These are the credit card rules you can break in an emergency.
How to Save for Retirement During the Coronavirus Crash, Source:https://www.rd.com/advice/how-to-save-for-retirement-during-the-coronavirus-crash/
