{"id":21611,"date":"2026-01-23T02:20:00","date_gmt":"2026-01-23T08:20:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=21611"},"modified":"2026-02-06T17:22:59","modified_gmt":"2026-02-06T23:22:59","slug":"how-much-to-save-each-month","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-much-to-save-each-month\/","title":{"rendered":"How much should I save each month?"},"content":{"rendered":"\n

We all want to save money\u2014or save more than we already do. But knowing exactly how much money you need to stash away for rainy days and retirement can be hard, as is figuring out how to go about it. Determining the right amount to save can also be challenging when you\u2019re juggling multiple financial goals, like building an emergency fund, maxing out retirement accounts, or saving for a child\u2019s education.<\/p>\n\n\n\n

Nearly 9 in 10 Americans save regularly, and those who do typically set aside an average of $985 monthly, according to NerdWallet<\/a>. What are their top savings motivations? More than half of Americans (53%) regularly save for emergencies, while 43% save for retirement, and 42% for vacations. While this sounds promising, the Federal Reserve\u2019s 2022 Survey of Consumer Finances<\/em><\/a> found that nearly half of all American households had no savings in retirement accounts.<\/p>\n\n\n\n

If you have a monthly budget, chances are you wondered while creating it, \u201cHow much should I save each month?\u201d The trick to calculating the right amount to save each month is understanding key factors about your finances, like how much money is regularly coming in and going out. To make meeting your savings goals easier, Erika Kullberg, founder of a personal finance website, shares insights into how much money you should save each month.<\/p>\n\n\n\n

Determining how much to save each month<\/h2>\n\n\n\n

If you struggle with the question, \u201cHow much money should I save each month?\u201d it\u2019s time to do a financial analysis. When deciding how much to save, you should consider your income\u2014your salary plus any other household earnings\u2014as well as all fixed and variable expenses. Financial goals like building an emergency fund, saving for retirement, or planning for large purchases also play a vital role. If you have debt, you should also factor in those repayment obligations.<\/p>\n\n\n\n

It can be challenging to balance these financial needs, especially with inflation and rising costs causing so much financial stress<\/a>. But if putting money in a savings account regularly is a goal, the first step is to increase your awareness of your spending habits.<\/p>\n\n\n\n

These 10 tips will help you be more mindful about how you save money and figure out a monthly savings amount that works for you.<\/p>\n\n\n\n

1: Set specific financial goals<\/h3>\n\n\n\n

According to Kullberg, there\u2019s no exact formula for saving enough to feel secure. But a good rule of thumb is to think about your financial goals and future needs, then work backward to set aside the money needed to support them.<\/p>\n\n\n\n

\u201cHaving specific goals in mind is a great place to start when creating your savings plan,\u201d she says. \u201cFiguring out exactly what goes into your savings plan is the first step in saving the right amount. Whether you want to save for an emergency fund, retirement fund, or new house, nailing down the specifics\u2014from what you\u2019d like to save for to how long you expect it to take\u2014comes first.\u201d<\/p>\n\n\n\n

Creating a simple budget<\/a> designed to target financial goals is key.<\/p>\n\n\n\n

<\/a>2: Use a savings calculator<\/h3>\n\n\n\n

Kullberg also recommends turning to a savings calculator for help. \u201cSavings calculators help you estimate how much you\u2019ll need to put away each month to meet your savings targets,\u201d she says.<\/p>\n\n\n\n

3: Use the 50-20-30 rule<\/h3>\n\n\n\n

There\u2019s no one right way to create a budget. But the 50-20-30 rule<\/a> is a popular option: 50% of your income goes toward needs, 20% toward savings and investments, and 30% toward wants.<\/p>\n\n\n\n

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\u201cIt\u2019s a useful budgeting rule of thumb to help you sustain saving money as a habit,\u201d Kullberg explains. This method helps you create a sustainable budget\u2014and one that isn\u2019t so strict that you\u2019ll get off course when spending temptations arise.<\/p>\n\n\n\n

4: Calculate your ideal savings rate<\/h3>\n\n\n\n

If you\u2019re struggling to meet your savings goals, create a goal-savings schedule. \u201cAim to save at least 15% to 20% of your gross income if possible,\u201d Kullberg says. \u201cAnd if it\u2019s not, adjust this figure based on your financial needs and goals.\u201d<\/p>\n\n\n\n

5: Prioritize your debts<\/h3>\n\n\n\n

Having debt can really slow your savings progress. If you have debts to repay\u2014particularly ones with high interest\u2014prioritize reducing or paying those off before accelerating your savings routine. Every month you carry a debt balance is a month your hard-earned cash is going toward interest payments instead of your savings goals. \u201cIf you have high-interest debt you\u2019re trying to pay off, it\u2019s generally better to put more energy into paying down that debt,\u201d Kullberg says. \u201cHigh-interest charges could quickly counteract all your savings success.\u201d<\/p>\n\n\n\n

6: Figure out your emergency fund<\/h3>\n\n\n\n

\u201cOnce high-interest debt is paid off, you can concentrate more on savings\u2014especially for your emergency fund, which should provide you with three to six months of living expenses in case the unexpected happens,\u201d Kullberg says.<\/p>\n\n\n\n

Build an emergency fund<\/a> in a place where it can grow. A high interest rate savings account is a great spot to keep your money safe and accessible while taking advantage of the power of compound interest, which is when your money earns interest on both the original amount and the interest already earned. <\/p>\n\n\n\n<\/div>\n\n\n

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“Figuring out exactly what goes into your savings plan is the first step in saving the right amount.”<\/p>\n