How much should I save each month?

The honest answer is: it depends on what you can spare and what you are saving for. A one-size percentage ignores your rent, your debts and your goal. A better approach is to work out your own number in three steps, then check it against a real date.

Build your dated savings plan

Step 1: find your monthly surplus

Surplus is your take-home pay minus your monthly expenses: housing, food, transportation, utilities, phone, insurance, subscriptions, debt payments and everything else. That surplus is the most you could save each month without changing anything. If it is zero or negative, the next move is to look at expenses, not to force a savings number.

Step 2: give the money a goal and a date

The CFPB says a specific goal can help you stay motivated. A goal also turns “how much should I save?” into arithmetic: (goal − already saved) ÷ months. With no interest:

These are examples of the math, not targets for you. Use the savings goal calculator for a quick answer with your own numbers.

Step 3: compare the amount with your surplus

If your surplus covers the monthly amount, you have a plan. If it does not, you have three levers: a later date, a smaller goal, or lower expenses. The savings plan shows the earliest date your current surplus can reach the goal, and lets you try cutting a category by an amount you choose to see how the date moves.

Make it stick

• Start small. The CFPB says even a small amount can provide some financial security.
• Be consistent. The CFPB calls consistent contributions the key to growth and suggests a fixed amount each payday period, adding more when you can.
• Automate it. The CFPB describes recurring transfers from checking to savings as one of the easiest ways to save consistently. Watch your balance to avoid overdraft fees.
• Use windfalls. It also suggests putting part of a tax refund or other one-time payment toward savings.

Debt in the picture

If part of your surplus is already going to debt, the debt avalanche and snowball calculators show how fast extra payments clear it. You can split the surplus between debt and savings and see each result.