How much money should you save? Here’s what the experts think

Apple is a release New savings account this month, Sparking interest Among savers looking for the best place to keep their balance.

There’s a lot to like about the account: It offers a 4.15% APY and has no fees or minimum balance requirements. That puts it on par with anything Top savings account rates Available today. These accounts offer upwards of 4.00% or even 4.50% APY and come with features for easy access and contribution.

But once you Choose the right savings account For you, the next step is actually building your balance.

The amount of money you save is one of the most important parts of your overall financial plan. Savings can help you on your financial journey in a number of ways — from Cover unexpected expenses Stay afloat during financial hardships to take that dream vacation or go back to school.

But with all these different goals and potential costs, making the right decision can be difficult how much savings Especially if you’re starting from scratch, the idea of ​​saving thousands of dollars can be daunting. Fortunately, there are some details about your financial situation and goals that you can use to determine the right savings number for yourself.

Start by exploring today’s top savings rates.

How much money should you save?

Setting a savings goal is a great way to motivate yourself to keep saving over time.

“Having a specific savings goal in mind also makes saving much easier than just saving for the sake of it,” says Kim Hall, CFP, director of financial planning and co-owner of Clarity Wealth Development.

But that goal may look different for everyone.

One way to start is Build your emergency fund.

“I generally recommend 3-6 months of savings,” says Jay Lee, CFA, CFP, founder of Ballast Financial. But given today’s overall economic uncertainty, you might want to go closer to six months to be more conservative, he says.

The extra cash afforded by today’s economy — combined with high-yield savings account earnings — isn’t a bad thing, agrees John Boyd, CFP, MDRN Wealth’s founder and chief wealth advisor.

“I believe how much to save depends on age and your personal circumstances,” he says. “Generally speaking, when using the traditional 3-6 month emergency fund benchmark of expenses, most people tend to lean more over that 6 month mark and possibly go a little over.”

Compare the top savings rates now to find the best account for you.

Building savings over time

The good news is, it’s okay if you don’t have thousands of dollars in your savings account today. actually, Today’s very high interest rates Make this one of the most profitable times to start building your savings with growth from interest earnings.

starting with Opening a savings account And contribute what you can. Set up Automatic contribution So you can manage money in your savings before you have a chance to miss it. Even if it’s just a few dollars a month, it can make a big difference over time.

When you are able to save a little more, make a portion of your income that matches your expenses and other financial goals.

“A popular rule of thumb is to save 20% of your income, spend 30% on necessities (considerable things like vacations and entertainment) and 50% on necessities (food, housing, and utilities),” says Hall. “But ultimately the savings rate varies from person to person and really depends on what stage of life you’re in and what’s going on in your life.”

Bottom line

The amount of money you should save is personal. Some people—especially if they have a stable income and low expenses—may be comfortable with less. On the other hand, people with less reliable income or very high monthly expenses may want to secure a larger amount in savings.

Set a goal based on your risk tolerance, current spending and future goals – and then start saving. You save any amount High Yield Savings Account Today will help you earn interest and reach your goals faster.

To get started, compare today’s top savings rates now.