Americans aged 34 years and younger have an average of less than $5,000 in their savings account.
For those that save money, it does not leave much room for emergency expenses and preparing for retirement. How much should you be saving if you want to be best prepared for life?
Continue reading to discover how much should you save in money and the best ways to do so!
So How Much Should You Save?
Although you are not required to save your money, it is recommended if you want to live a satisfying lifestyle.
Many people recommend saving 20% of your income, each month, for the future. Finding out how much should you save may require a little math. However, you can easily control your spending with direct deposits into savings accounts.
Only saving 20% of your income still allows you the freedom to pay bills, donate, and buy everyday items. If you have the ability, saving more than this amount can help you even more in the future.
Below are a couple of the best ways that you can save money each month and contribute to your future.
Get a Side Hustle
If you want to increase your income so that you can contribute more to your savings account, you need a side hustle.
You can quickly increase your income by blogging, selling handmade goods, and finding a part-time job. If you have a hobby that you enjoy, you have an excellent opportunity to make money in a fun way. Selling homemade books and crafts can help you put away extra money for the future and have fun while doing so.
Don’t be afraid to get creative. Some people use their creative minds to write articles for companies while others use their math expertise during tax season.
Keep a Piggy Bank
Even if it isn’t in the shape of a pig, you should always have something to store your extra cash.
Tossing random coins and dollar bills at the end of the day into your piggy bank may not seem like a big deal, but over time it can help you save. Having money in a piggy bank makes you less likely to use it, resulting in it being emptied only once filled.
Use this loose change to improve your future. Some people recommend putting every $5 bill they come across (or any amount that you prefer) to save large sums quickly.
Track Your Money
If you are putting money aside but your account doesn’t grow, you will need to better track your money.
Tracking your money will help give you insight into your spending habits and weaknesses. Doing this can help you save more in the future by catching problems before they hold you back.
Watch Your Green Grow
If you have been wondering, how much should you save each paycheck, you have come to the right place.
Although we all live different lives, with different financial situations, it is still important for each of us to save for the future. Setting aside a small portion of your paycheck can help set you up for the future and protect you in emergencies.
Be sure to check out our blog for more articles with the best tips on saving money and how to prepare for surprise expenses!