How much should I save each month (2024)

FAQs

How much should I save each month? ›

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

This budgeting rule states that you should allocate 50 percent of your monthly income for essentials (such as housing, groceries and gas), 30 percent for wants and 20 percent for savings.

Saving $1,000 per month can be a good sign, as it means you're setting aside money for emergencies and long-term goals. However, if you're ignoring high-interest debt to meet your savings goals, you might want to switch gears and focus on paying off debt first.

While saving $2,000 in one month isn't going to be easy, it's possible if you set a plan and stick to it. You'll want to start by setting a savings plan and creating a budget for your finances. Then you can start reducing your daily expenses and start saving money.

Saving $1,500 per month may be a good amount if it's feasible. In general, save as much as you can to reach your goals, whether that's $50 or $1,500. You could speak with a certified financial planner to help develop a plan for your finances if you aren't sure how much money to save regularly.

Saving £500 each month is a great goal if you can manage it. Over the course of a year, you would save £6,000, which could be used for things like emergency funds, retirement savings, or big purchases like a house or car.

Savers say they typically set aside $985, on average, in a normal month, according to the survey. The median amount reported is $250. This includes money put in traditional savings vehicles such as certificates of deposit and savings accounts, but also kept as cash at home.

As of May 2023, more than 1 in 5 Americans have no emergency savings. Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding.

Earning 5K a month equals $60,000 in a year! This is a serious amount of money, and it's enough to live a very comfortable life in many countries.

In terms of savings accounts specifically, you'll likely find different estimates from different sources. The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.

How much is 2k a month hourly? ›

$2,000 a month is how much an hour? If you make $2,000 a month, your hourly salary would be $11.54.

By contributing $200 each month, your fund will add up throughout the year -- $2,400 is a solid amount of cash. Since most checking accounts don't earn interest, keeping your extra funds in a savings account is smart. One option is a high-yield savings account.

Do not subtract other amounts that may be withheld or automatically deducted, like health insurance or retirement contributions. Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

If you're starting to save for retirement at 40, that's not ideal, but it's also far from being too late. While the standard advice is to begin stashing away money for retirement in your early 20s, that's not what most people do, as it turns out.

But when it comes to what they need to be saving, it depends. So, if we're starting with a 30-year-old, they should be probably saving close to $580, $600, at least, a month. And that's if they're going to earn a high rate of return. So it depends on how aggressive and risky that they're looking to be.

That's still a lot. To get a little over $1 million in 25 years, Graves has you stashing away over $1,200 a month for retirement. But it's a lot less than $2,600 a month, and with Graves' calculations, you'll be putting in the money for 25 years instead of 40.

Fidelity Investments recommends saving 1x your salary by 30. At the end of 2021, the average annual salary was $49,920 for 25 to 34-year-olds and $58,604 for 35 to 44-year-olds. So the average 30-year-old should have $50,000 to $60,000 saved by Fidelity's standards.

Investing only $50 a month adds up

Contributing $50 a month to an investment account can help create impressive savings, even at a moderate 5% annual growth. It's a common myth that you need a few thousand dollars to begin investing.