How Much Money Should You Save Every Month?

When you’re looking to work towards financial security or financial independence, saving is how you will get there fastest.

Setting aside money for your future goals is one of the basic requirements when planning for your future.

Knowing this is one aspect of the picture, but it’s a whole different thing to save regularly. Plus, understanding how much you should save exactly is another challenge altogether.

How Much Money Should You Save Every Month?

According to the 50/30/20 rule from Senator Elizabeth Warren, at least 20% of your income should be saved. 50% goes to needs, and 30% goes to wants.

Why Stick To The 20%?

If you’re sticking to the 20% savings of your income, this is an incredible amount to work towards financial independence.

What Are You Saving For?

You can save for: – Short-term financial goals – Long-term financial goals

Working Towards Your Financial Goals

What you need to do: – Make a list of all the goals you are saving for right now – Write down how much you need to save for each goal (total)