Ahhh! Adulthood – regular paychecks, eating meals that don't come in a Styrofoam cup, and the ability to, as Tom from "Parks and Recreation" would say, "Treat Yo' Self"  But how much of your newfound income should you be saving? Are you spending too much? Are you investing it in the right places and growing it or just letting it sit? 

The suggestion is to always have at least 2-3 months worth of living expenses in your savings account. This includes rent, food, gas and any other basic living expenses. How do we decide what to spend, save, and invest? Apply the "50-30-20 Rule" to every paycheck you receive: 

50%: Spending

30%: Savings

20%: Investment

50%:

This amount goes to your recurring living expenses. Don't forget to include things such as: 

• Food/Alcohol
• Rent
• Social 
• Uber/Lyft
• Netflix
• Spotify
• Bills

30%:

This second part is adjustable. Put 30% of each paycheck away until you reach the suggest amount I mentioned above – 2-3 months worth of pay for a rainy day. Once you reach that goal it assess your immediate goals (a vacation perhaps?) to determine how much you should be putting in your savings versus investing. If you are comfortable with the amount you are saving, speak with your adviser about changing up the ratio to lend more to the investment proportion. 

This is also where Orca's partnered adviser and signature "goal planning" portfolios step in. Have a specific question? Ask us here. 

20%:

The final 20%, is also adjustable and goes towards investments. These investments can have different strategies based on what you want to accomplish and Orca's Advisers can help you pick the entry-level investments that are right for you. A good way to think about how much you should be putting towards investments is to write down your long-term goals; for example: buying a condo, starting a business, or graduate school. Investing ensures that your money is working for you and helps you raise money towards expensive goals much faster by accumulating money from other sources (stocks, real estate, etc.).  

While it is important to have money sitting in your bank account, it is also crucial to make sure your money is working for you. Make a timeline according to your goals and take advantage of the growth you can attain by leveraging investments. 

We understand that we all have short-term goals as well as long-term ones.