This is how much money to save each day if you want a secure retirement
There's an easy way to work out what to put away each month, which we explain here
IT'S pretty obvious that it's worth saving from an early age if you want to be financially secure in the future, but knowing how much to put away can be tricky.
Some people chose to rely on pensions for stability, although it's always good to have a nest egg too.
Financial adviser David Bach has written a best-selling book called , with an updated version out this month.
According to the author the key to never worrying about money is easy - from your 20s save an hour a day of your income.
"If you're watching me and you're in your 20s, literally all you have to do to change your whole financial life and never worry about money — if you see your parents struggling and never want to worry about it like your parents — all you have to do is keep one hour of your income a day, automatically," he told in a .
It's advice David has been dishing out for many years, and he worries people are bored of hearing it so don't listen any more.
He suggests setting up something like a direct debit for the amount into a savings account as soon as your paid. The idea is that if you never really see the money you won't be able to miss it.
Not sure how much your paid per hour?
- Take the amount of hours you work a week and multiply by 52, which is the amount of weeks in the year
- This gives you the total amount of hours you work a year
- Then take your annual salary and divide it by the total hours
- The result is your hourly wage
- Multiply by seven to get how much you should save a week
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You might look at the figure and think there's no way you can do without that much money, but it's time to get real.
Ditch the shop-bought lunches, cut out a takeaway a week or curb that coffee habit. All those things will free up cash for you to put away.
If you're not in your 20s don't despair - it's still a good way to bolster your rainy day fund, plus you can always add a bit more in each pay day.
Of course, you'll also need to decide where to put the money you're saving.
We recently revealed where it's best to put your cash, as well as some tips from money expert Martin Lewis on becoming a 'savings tart'.