How much should you save?

Published on Jul 01, 2021

How much should you save?

To be successful at saving you need to foster a consistent habit. That’s where setting savings goals can help. You may have a specific want, but you also need savings for long term items.  Many experts agree that the ideal amount to put away for savings is 20% of your income.

Why 20%?

This figure comes from the 50/30/20 plan taught by Elizabeth Warren at Harvard Law School. It means that you should spend no more than 50% of your income on mandatory items, 30% on discretionary spending, and 20% on savings. This includes all types of savings. The types can be broken into 3 categories: Emergencies, Short/Mid-term Goals, and Retirement.