According to the 90-10 rule, you should aim to save 10% of your monthly income. To calculate how much you should be putting into savings each month, follow these steps:
1. Calculate your monthly taxes: $4,700 * 20% = $940
2. Subtract the taxes from your monthly income to get your after-tax income: $4,700 - $940 = $3,760
3. Calculate 10% of your after-tax income: $3,760 * 10% = $376
Therefore, you should be putting $376 into savings each month based on the 90-10 rule.
You are a lucky college graduate with the generous new salary of $4,700 a month. You estimate you will be paying about 20% towards taxes. Given this, if you wanted to save according to the 90-10 rule, how much should you be putting into savings each month?
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