Answered
How much of my salary should I actually save?
A common target is 20% of take-home pay, but the right number depends on your income, costs and goals. If 20% isn't possible yet, start with what you can, even 5%, and raise it every time your pay goes up.
Consistency beats the percentage. Someone saving 10% every month ends up ahead of someone who saves 30% occasionally.
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Your savings rate
A 20%+ rate is a healthy long-term target
0.0%
Estimates only — a quick starting point, not financial advice.
Realistic starting points
- Tight budget or high-cost city: 5–10%. Focus on building the habit and a small emergency fund.
- Steady income with room to spare: 15–20%. The classic target.
- Higher income or big goals (a home, early retirement): 25% or more.
What to save for, in order
- A starter emergency fund, enough to cover a surprise bill without borrowing.
- Paying off high-interest debt such as credit card balances.
- A full emergency fund of three to six months of essential costs.
- Long-term goals: retirement, a home, investing.
Make it automatic
Move your savings on payday, before you start spending, ideally by automatic transfer to a separate account. Money you never see in your spending account is money you won't miss.
Raise it gradually
Each time your income goes up, put half the increase into savings. Your lifestyle still improves and your savings rate climbs without ever feeling like a sacrifice.
Know your real rate
Your savings rate is what you kept divided by what you earned. Most people guess it wrong. Work out yours with the calculator below. In Balance, logging income as well as spending shows what you actually kept each month, and you can ask "how much did I save this month?"
Frequently asked questions
Should I save or pay off debt first?
Build a small emergency fund first so you don't borrow again, then clear high-interest debt before saving more aggressively.
Does retirement contribution taken from my salary count?
Yes. If it comes out of your pay automatically, count it as part of your savings rate.
Keep exploring
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