You’ve always heard it’s important to save as much as you can, but what does that really mean? Realistically speaking, saving can be hard once your paycheck hits your bank account. Bills, necessities, and extra wants may slowly diminish your hard-earned check. If you struggle with paying into your savings first, you’re not alone.
It turns out, 59 percent of Americans live paycheck to paycheck, and 65 percent don’t know how much they spend on a monthly basis. Yet, for those who always preach the value of saving, how much of your paycheck should you save?
Setting your savings goals too high could deprive your emergency funds and other savings accounts, yet saving too little could hinder your investments. If you want to retire early, start your own business, or buy a house, your savings account is a key ingredient.
To find your ideal savings goal, keep reading or skip to one of these sections: