How much should you save a 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.

tiaa.org - How much should I save each month | TIAA

Can a hyena be a pet?

Hyenas are not a choice of pet because of their aggressive nature. Adult hyenas do not make good pets because they are aggressive and prone to...

Last updated Apr 2, 2018

Is it OK to leave ammo in magazines?

When using quality magazines with quality ammunition, stored and maintained properly, you can leave them loaded as long as you want to without any...

Last updated Oct 28, 2018

Promotion

When someone asks how much money they should save each month, I throw them a curveball reply:

"What are your savings goals"?

That's a serious question. Your ideal savings rate depends on your specific, long-term reasons for saving.

There are three timelines you should consider:

Less than 1 year

Your short-term savings can get used to vacation in Aruba, buy holiday gifts or pay your taxes.

Less than 1 decade

You might use this money to replace your dishwasher, fix your car's timing belt, cover a major insurance deductible, stay afloat when you're between jobs and make a down payment on a home.

Lifetime

Retirement is the ultimate long-term savings goal.

Now back to the original question: How much should you save a month? Let's break this down by goal:

1. Retirement

You should consider saving 10 - 15% of your income for retirement. Sound daunting? Don't worry: your employer match, if you have one, counts. If you save 5% of your income and your boss matches another 5%, you've accomplished a 10% savings rate. Our online tools can help you calculate your needs for retirement and other financial goals.

2. Emergencies

You should also consider establishing an "emergency fund" that can cover 3-9 months of your living expenses.

How can you save such a large sum? First, calculate your monthly cost-of-living. Assume that if you lose your job, you'll sacrifice luxuries such as pedicures or your premium cable TV package. How much do you need to survive?

Divide that number in half. Can you save this monthly? If so, you'll build a six-month emergency fund within the next year.

3. Everything else

Make a list of major expenses within the next decade, ranging from replacing your gutters to throwing your wedding. (If it's easier, list broad categories like "home repairs," "holidays" and "wedding.") Write your ideal savings goal target and deadline. Divide by the number of months remaining to see how much you should save. Want to pay cash for a $10,000 car in five years? You'll need $167 per month. When you run through this exercise, you'll probably discover that you can't save enough for every savings goal on your list. You now have four options:

Re-imagine your savings goals

Lengthen your timeline

Cut your current spending

Earn more

Most people opt for a combination of those four choices. You might decide you'd be happy buying a $7,000 car, which will require only $116 per month. You cut your $50 cable bill and pick up a babysitting gig one night per month, and voila — now you're on-track to pay cash for your next car.

50/30/20 rule

Did you want a simpler answer? No problem. Here's a final rule of thumb you can consider: at least 20% of your income should go towards savings. More is fine; less may mean saving longer.

How do you make a man want you?

Here are some tips and tricks from relationship and matchmaking experts that can help you get a man to focus his attention on you. Smile. TODAY....

Last updated Feb 10, 2018

What happens to your brain when you're in survival mode?

When a person experiences or witnesses a traumatic event, their brain enters what is called survival mode. In order to help them survive, their...

Last updated Dec 27, 2020

Promotion

Is cooking at home cheaper than eating out?

With consumer prices at a 40-year high, savvy consumers know they have to put more work into their shopping if they want to save a buck. But when it comes to food, you'll generally save money — and enjoy better nutrition — eating at home than dining out. Copyright 2022 Nexstar Media Inc.

kron4.com - Are restaurant meals really cheaper than cooking at home? - KRON4

Is eating out any cheaper than eating at home? (Getty)

(KTLA) – Conventional wisdom says you’ll save money by eating at home, rather than going out to restaurants. But according to the Labor Department, grocery prices rose by 13.1% in July from a year before, whereas restaurant prices were up 7.6%. That’s the largest inflationary gap between the two dining experiences in about half a century. But when you look a little closer, the price disparity is a bit misleading. For one thing, much of the average savings for consumers come from eating at fast-food restaurants, which have strived to avoid price hikes as they struggle to regain their pre-pandemic footing.

Higher-end eateries are still typically more expensive than at-home meals.

Moreover, many independent restaurants, operating on narrow margins, may be reluctant to pass along their higher costs to customers, whereas most supermarket chains haven’t hesitated to raise retail prices in lockstep with higher wholesale costs. The most important difference, however, is that you can still dine more healthfully at home than eating at potentially cheaper fast-food places. Go ahead, dine out if you please — and your local mom-and-pop restaurants will be grateful for your business. But careful shopping at the grocery store can still produce thriftier meals than most restaurant fare. You may want to be a coupon clipper or watch for special deals. With consumer prices at a 40-year high, savvy consumers know they have to put more work into their shopping if they want to save a buck. But when it comes to food, you’ll generally save money — and enjoy better nutrition — eating at home than dining out.

Can a civilian become a sniper?

Civilian Sniper III (6-8 hours) Moving Targets & Unconventional Positions. This course is open to civilians and provides instruction in the...

Last updated Jan 18, 2020

What are the 9 signs of life?

All living organisms share several key characteristics or functions: order, sensitivity or response to the environment, reproduction, adaptation,...

Last updated Feb 19, 2022

Promotion

Should you clean coins before selling?

Generally, it is better to leave your antique metal currency alone than it is to try and erase all the grime and grit off of those coins. Cleaning...

Last updated Aug 4, 2021

Promotion

Why is planning important 3 reasons?

In particular, planning helps to critically assess the goal to see if it's realistic. It facilitates decision making and allows setting a time...

Last updated May 8, 2019