You just got paid, and for about 72 glorious hours, you feel like a Kardashian. Then, reality hits: rent, bills, groceries, that subscription you forgot to cancel… and suddenly you’re wondering where it all went. But before the money disappears into thin air, there’s one big question: how much should you be saving?

The short answer? More than you probably are right now. But let’s get into the specifics.

The 50/30/20 rule: the golden standard (sort of)

Finance types love the 50/30/20 rule. It’s simple, clean, and looks great on a pie chart:

  • 50% for needs: Rent, utilities, groceries, insurance, minimum debt payments
  • 30% for wants: Dining out, entertainment, that latte habit you’re not giving up
  • 20% for savings: Emergency fund, retirement, paying off debt faster

The reality check: This works great if you’re making decent money and don’t live in a place where rent eats 50% of your paycheck all by itself. For many people, hitting that 20% savings rate feels impossible (because, well, it kind of is).

The ‘pay yourself first’ approach

Here’s a different way to think about it: instead of saving what’s left over (spoiler: there’s never anything left over), save before you spend.

Start with these targets:

  • Just starting out: Aim for 10% of your paycheck
  • Getting serious: Work up to 15%
  • Building wealth: Push for 20% or more

Even if you can only do 5% right now, that’s better than nothing. The key is making it automatic—set up direct deposit to split your paycheck between checking and savings so you don’t even touch it.

What does ‘savings’ actually mean?

Not all savings are created equal. Here’s where that money should actually go:

1. Emergency fund first (seriously, first) Before you worry about anything else, you need a financial cushion for when life inevitably gets expensive. Start with $1,000, then work toward 3-6 months of expenses.

Why it matters: Without an emergency fund, every unexpected car repair or medical bill becomes a credit card debt disaster.

2. Employer 401(k) match (free money alert) If your employer matches your 401(k) contributions, contribute at least enough to get the full match. Not doing this is literally leaving money on the table.

Example: If they match 3%, and you make $50,000, that’s $1,500 of free money every year. Don’t be the person who says no to free money.

3. High-interest debt (the savings-killer) If you’re carrying credit card debt at 20%+ interest, paying that down IS savings. You can’t out-save high-interest debt—it’s like trying to fill a bathtub with the drain open.

4. Retirement accounts (future you will thank you) After the emergency fund and employer match, focus on retirement. Aim for 10-15% of your income going toward retirement—whether that’s a 401(k), IRA, or both.

When life makes saving feel impossible

Let’s get real: sometimes you’re just trying to keep the lights on. If you can’t hit those percentage targets right now, here’s what to do:

Start small:

  • Save $5 a week. That’s $260 a year—not nothing.
  • Round up purchases and save the difference with apps like Brigit
  • Put tax refunds or bonuses directly into savings before you ‘accidentally’ spend them

Cut one thing:

  • That $15/month subscription you barely use? That’s $180 a year in savings.
  • Making coffee at home 3 days a week instead of buying it? That’s another $500.

Increase as you earn: Every time you get a raise, immediately bump up your savings percentage before lifestyle inflation kicks in.

The age-based savings guide

Different life stages need different approaches:

In your 20s: Shoot for 10-15% of your income You’re probably not making much yet, and that’s okay. The goal is building the habit and letting compound interest work its magic.

In your 30s: Push for 15-20% You’re (hopefully) earning more, and you need to catch up if you slacked off in your 20s. This is when saving gets real.

In your 40s+: Target 20-25% or more Retirement is no longer a distant concept. If you haven’t been saving aggressively, now’s the time to play catch-up.

The bottom line

There’s no magic number that works for everyone, but here’s a good starting point: Save at least 10% of every paycheck, and work your way up from there.

If you can’t hit 10% right now, save what you can—even if it’s just $20 a week. The habit matters more than the amount when you’re starting out. And as your income grows, your savings rate should grow with it.

The real question isn’t ‘how much should I save?’ it’s ‘am I saving consistently?’ Because consistency, even with small amounts, beats sporadic big deposits every time.

Your future self (the one who wants to retire someday, or buy a house, or just not panic about money) is counting on the decisions you make now. Don’t let them down!