How Much Should You Save

Imagine your income like a torta. 🥪 You know, like the ones your abuela 👵 would make you when you were a kid. Remember how she’d make it with the warm, fresh bollio that was made that morning at the panadería. She’d work her magic by slicing the bread and placing jamón, fresh tomatoes, lettuce, mayo, and avocados inside. Maybe she’d add some jalapeños too if you liked it a little spicy. 🔥 Whatever she did to it, it’s the best sandwich ever. 💯

Okay, now we’re getting hungry! 😋 But, the point is that you can imagine your income like the mouthwatering torta your abuela made you. Especially in the context of spending and saving your money. 💵 

It’s no secret that we don’t get to keep every bit of money in our paycheck. Specifically, taxes. With the image of the torta in mind, you’re cutting off a bit of your torta to give to the IRS. 🥪 Now with what’s left of the rest of the torta you have to use to pay bills, spend, and save. You have to cut off another piece of your torta to go to your rent, loans, car insurance, etc. This leaves you with another chunk of your torta gone. ❗️ 

Now what do we do with the rest of it? The rest of the torta you can use for spending like clothes, going out to eat, buying furniture, etc. However, this comes with self-discipline. 💪 While it’s easy to use the rest of your torta for buying what you want, you should be cutting off a slice of that to go into savings. 📈 In the same way you have to cut off a piece to pay for taxes and bills, you should be cutting off a piece to put into the bank. 🏦 

The normal recommendation is saving 20% of your post-tax income. That sounds like a lot of the torta, but it’s worth it to keep it in the bank and start setting yourself up for financial security. Like an emergency fund! 😁 Check out this guide we created to help you start. 

Cutting off 20% of your income and pouring it into your savings and emergency fund means that you’re making the decisions to start creating financial stability in the future and generational wealth. 🎉