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That marks a worrying rise since 2019.
But even those who arent technically in that camp still may not besavingnearly as much as theyd like.
Start With a Four-Week Month
Many employees get paid biweekly but they budget monthly.
So they divide their annual income by 12 to come up with their monthly income.
That may not be the best course of action, as they wont actually collect that amount most months.
In any given month, biweekly employees can count on only two paychecks.
Occasionally, theyll receive a third paycheck within a month.
So they could base their budget on four weeks salary because thats what will come in at a minimum.
As money expert Robert Kiyosaki frequently says, pay yourself first.
Your savings creates your financial stability and your future wealth, and it must stay a top priority.
The higher your savings rate, the faster you build wealth.
The 50/30/20 rule is a popular guideline, which recommends at least a 20% savings rate.
That raises another question, however.
What do you do with the savings?
Dave Ramsey ranks this as a high priority in hisBaby Steps program.
And hes not alone.
And then keep saving.
As for how much you need saved, Ramsey recommends starting with a goal of $1,000.
Even so, Ramsey recommends eventually reaching an emergency fund with three to six months worth of living expenses.
Invest for Retirement and Other Wealth Goals
Investing is a key part of building wealth too.
Wealthy people often earn more money through investments than they do through a paycheck.
The only way to get yourself to that position is to invest.
Automation makes it so much easier to stand up and become financially empowered today, Orman explained in anarticle.
Automate your credit card paydown and your 401(k) contributions.
Automate your transfers to your emergency fund and your investment or retirement accounts.
Set these payments to go out the day after every payday.
These can include accounts for gifts, accounts for savings, accounts for discretionary expenses and more.
But if you create only one additional bank account, consider creating one for discretionary spending.
Automate a bank transfer for your discretionary portion of each paycheck.
This practice can help prevent you from overspending on discretionary items.
Want more money for your discretionary budget?
Consider picking up a side hustle.
But dont raid your savings to pay for your daily Starbucks latte habit.
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