Rich Brother Finances
Rich Brother Finances
With this being the first blog post here, i insisted to write it myself with no support from my team whatsoever.
Hi, My name is Raed, and just before i start this blog post, i will tell a little and quick story.
3 years ago i was in crushing debt, i was $80,000 in debt to the bank, $17,000 for my family, and around $3,000 for my (ex wife now) that then she was filing a divorce (she was 4 months pregnant), and i had ZERO legal documentation (all my papers were expired).
Today, i own 3 businesses, i cleared my debts and converted them to (smart debt) and i still have my full time job that i got promoted twice in 2 years, got a salary raise, and commissions.
In this blog i will cover how, not purely financial plans but i will just go with the flow.
By far, the most important step to know how much to save to reach my goal is focusing on the goal is extremely important, knowing where you want to be in 5, 10, or any number of years you wish, i imagine it like driving, if you do not know the direction, you are going NOWHERE.
So i planned (after the birth my amazing son) that i will not only change his life, i will change the lives of my entire family, so at that night i went to my bed (in a shared apartment with 11 other guys) and i remember calculating in my head the number i should achieve monthly in order to be able to invest money and increase my net worth after clearing my debt which alone will take me several years.
First Things First, i found myself a sales job that pays me a decent $2,500 a month, and instantly $1,000 goes to rent.
I decided to walk to work so i save up as much as possible in order to improve my credit score so i can have access to more capital in case of any opportunity.
Which was exactly what happened, and then i took a personal loan to pay back what i borrowed from family and friends in order to regain trust, because these people will never disappoint.
Other than the money i paid back, i invested in a Machinery rental company, which pays me around $800 a month, and my monthly loan payment was $1,000 which that truck covers enough of it, the other $200 i had to work extra hours to cover it, considering that my salary was designed to cover the essential payments, Rent, Bills, Transportation, Groceries, and i have $200 a month as entertainment budget, where i get to spend it either in 1 night, or split it into 4 weekends and i just go for a coffee and that is it.
My Saving Goal was to gift my son a Mercedes G63 on his 18th birthday after he graduates from the top school in the city. which will cost me an arm and leg, but i had to plan it that way because his joy is the best purpose i have in life.
Saving goals are specific financial targets you set for yourself. These can be short-term (like buying a new phone, an anniversary gift), medium-term (like a wedding), or long-term (like retirement or a home purchase). Clear goals give your saving efforts purpose, structure, and motivation.
In today’s fast-paced world, financial security is not just a luxury—it’s a necessity. Whether you’re saving for a vacation, building an emergency fund, buying a house, or preparing for retirement, having a clear saving goal is the foundation of long-term financial success.
But here’s the truth: saving money without a goal is like sailing without a compass. You might make progress, but you’ll rarely reach your destination. That’s why saving goals, combined with smart planning tools like a goal saving calculator, are essential for anyone who wants to take control of their finances.
This comprehensive guide will walk you through everything you need to know about setting saving goals—from the basics to practical tips, strategies, and tools to help you turn your financial dreams into reality.
Saving goals are specific financial targets you set for the future. They are intentional, measurable, and time-bound. Instead of simply saying, “I want to save money,” a saving goal defines how much you want to save, why, and by when.
Example: “I want to save $10,000 in two years for a down payment on a car.”
This goal gives you a clear number and deadline to work with, which makes your saving efforts more effective and focused.
Most people understand they should save money. But without a clear reason or structure, savings often get deprioritized. Here’s why saving goals make a difference:
SMART here stands for (Specific, Measurable, Achievable, Relevant, Time-Bound), let me explain:
if you combine all the above, you will realize that you will save money more efficiently.
If you make $1,000 a month, you cannot save $1 Million in 1 year, but you can save $2,500 which can make you another $250 a month to save on top of your current savings, and work smarter to save $10,000 in 1 year.
Now the following year (if that $10k was invested successfully) you can save $50K and so on.
Set up a saving account with NO WITHDRAWAL CARD for that account, and put a transfer limit from that account to your current account, or you can transfer that amount to someone you trust to save up for you.
If you feel like to lack discipline, set up an automatic transfer on your pay-day, so you do not get lazy to do it, or forget. and if you ever felt lazy or not that eager to do that, think about it like a money you owe to your future.
i would recommend calculating a daily budget (food, transportation, etc.) and have that amount with you in cash, and keep anther card (other that your main bank card, like prepaid card, or online card) with an extra $100 for emergencies. so you force yourself to commit to the exact budget you put for yourself in the first place.
last but not least, If you make any extra income, forget about it, consider it saved before you even receive it, consider it a saving reward (2 of my side hustles transfer my payments to my savings account directly, and i have no tracking on the amount i receive, i just increase my savings)
The amount you should save depends on several factors—your income, expenses, financial goals, and timeline. While there’s no universal figure, there are proven guidelines and strategies that can help you determine the right amount for your unique situation.
One of the most popular budgeting frameworks is the 50/30/20 rule, which divides your after-tax income as follows:
50% for Needs: Rent, groceries, utilities, transportation, insurance
30% for Wants: Dining out, entertainment, hobbies, subscriptions
20% for Savings and Debt Repayment: Emergency fund, retirement, paying off loans, or reaching specific saving goals
Example:
If your monthly income is $3,000 after tax:
$1,500 goes toward needs
$900 toward wants
$600 toward savings/debt repayment
Of that $600, you can split the amount across multiple saving goals—e.g., $200 for an emergency fund, $200 toward vacation, and $200 toward a home down payment.
Each saving goal comes with a different target and timeline. A $500 goal for a new phone in 5 months is very different from a $20,000 down payment in 2 years.
Use a Goal Saving Calculator to reverse-engineer how much you should set aside monthly for each goal.
The more you earn, the more you should be able to save. However, high income doesn’t guarantee high savings—budgeting and discipline are key.
Tip: Even if you’re earning less, saving 5–10% of your income consistently can have a powerful long-term impact.
If you carry high-interest debt (like credit cards), prioritize paying that off first. But still try to save something each month to maintain the saving habit.
20s: Start building an emergency fund and begin saving for long-term goals (like retirement) early.
30s–40s: Balance short- and mid-term goals like family needs, home buying, or education.
50s–60s: Focus heavily on retirement and reducing liabilities.
| Goal | Suggested % of Income |
|---|---|
| Emergency Fund | 5–10% until goal is met |
| Retirement (long-term) | 10–15% |
| Big Purchases (car/home) | 5–10% |
| Short-Term Goals (vacation, gadgets) | 5% |
Emergency Fund: Your #1 priority. Aim for 3–6 months’ worth of living expenses.
High-Interest Debt: While not a savings goal, tackling this frees up more room to save.
Short-Term Needs: Set deadlines and divide the goal into monthly savings targets.
Long-Term Growth: Consider high-interest savings accounts or investments
Automate it: Set up automatic transfers on payday.
Save windfalls: Tax returns, bonuses, and gifts can accelerate your savings.
Cut unnecessary expenses: Trim subscriptions or reduce dining out.
Use goal trackers: Visual progress motivates you to keep going.
There’s no perfect amount to save—it depends on your goals, income, and commitment. The key is to start where you are, and increase as you go. Even small savings add up over time. Don’t underestimate the power of consistency.
👉 Use our Goal Saving Calculator to see exactly how much you should save each month based on your personal goals and timeline.
Don’t miss our future updates! Get Subscribed Today!