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How Much Money Should You Put into Savings Each Month?

Posted by: RateAPY Bank Rates News
January 18th, 2010

According to many financial planners, the rule of thumb for how much you should put into savings each month is 10% for long-term retirement and an additional 10% for general savings. The percentage could be based either on your gross earnings or your take-home pay, depending on how aggressive you choose to be. If you are unable to save a full 10%, it is better to modify your plan rather than save nothing. Putting at least a regular amount into savings each month, no matter the amount, is a much better plan than saving nothing.

Make sure that you invest your savings into a money market account, savings account, or certificate of deposit. Leaving your money in cash that does not earn interest is not smart. If you would like access to your savings in an emergency, a money market account or standard savings account is best. If you are able to commit to leaving the money untouched for a period of time, consider a certificate of deposit.