How Much to Save Per Month?

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We assume that the reason you are reading this article is because you want to be better at your savings. But the exact answer on how much you should and can save will depend on your monthly income. Also on your age, your needs, and your goals. However, as we mentioned above, there’s one very useful role.

The rule is known as – the 50/30/20 strategy.

According to this highly popular strategy, you should:

  • Spend 50% of your post-tax income on necessities (including housing and utilities);
  • 30% to your wants like entertainment;
  • 20% to debt reduction and savings.

Let’s use this strategy as an actual example. Let’s say that your income is $2000 per month.

  • Necessities: $1,000 – 50% of your income
  • Wants: $600 – 30% of your income
  • Savings or debt: $400 – 20% of your income

No matter what your salary is, try this strategy following the percentage strategy. If your salary can’t allow you this, you can always reduce your wants and increase your necessities or savings. 

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