Key takeaways
Financial experts typically recommend saving 15-20% of your gross income each month, but the right amount varies based on your personal situation and goals.
The 50/30/20 budgeting rule suggests allocating 20% of your take-home pay toward savings and debt repayment.
Prioritize building an emergency fund of 3-6 months’ expenses before focusing on other savings goals.
Where you save matters: high-yield savings accounts, retirement accounts and other investment vehicles help your money grow faster than traditional savings accounts.
Most Americans struggle to save enough money. According to Bankrate’s 2025 Emergency Savings Report, only 41% of U.S. adults could cover an unexpected $1,000 expense from savings. Whether you’re just starting your savings journey or looking to boost your existing savings strategy, understanding how much to save each month is a crucial first step.
How much should you save each month?
“While I know everyone loves rules of thumb and easy tips, there isn’t a percentage that works across the board for everyone,” says Laura Davis, CFP and founder of Financial Labs Inc.
There’s no one-size-fits-all answer to how much you should save monthly, but there are several widely accepted guidelines can help you establish a reasonable target for yourself:
The 15 to 20 percent rule
Many financial experts recommend saving at least 15 to 20 percent of your gross income (before taxes and other deductions). This percentage includes retirement contributions (including employer matches), emergency fund contributions, and savings for specific goals like a home down payment or vacation.
The 50/30/20 budget rule
The 50/30/20 budgeting method offers a simplified framework for managing your money. It suggests allocating 50 percent of your take-home pay toward needs (housing, food, utilities), 30 percent toward wants (entertainment, dining out), and 20 percent toward savings and debt repayment.
Adjusted for income level
Your income level can impact how much you’re able to save. If you have a lower income, focus on building at least a small emergency fund first, even if you can only save 5 to 10 percent of your income. Those with middle incomes should aim for 15 to 20 percent, balancing emergency savings, retirement, and other goals. Higher-income earners might consider saving more than 20 percent to maximize tax advantages and build wealth faster.
Remember that these are guidelines, not strict rules. The right savings amount for you depends on your individual circumstances, including your age, debt level, income stability, and long-term goals.
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