Set Aside Some Savings Each Month

Once you have tracked your budget, decide on a percentage of your income to set aside each month. Everyone obviously varies in their income, expenses, and budgeting goals, so figure out an amount that is realistic for you. If you find that you are extremely comfortable with your spending, perhaps consider increasing the amount that you save. As they say, “The more you make, the more you spend.” Beware of falling into that trap just because you are currently financially secure.

A recommended amount to save is 10% of your salary every month. However, this should be a minimum goal, if possible. It is also recommended to have 3-6 months of savings set aside as an emergency fund, in case of sudden medical bills, car repair, loss of a job, etc. I would suggest keeping a separate savings account just for the emergency fund, so you’re not tempted to spend more from your regular checking or savings account. You can also have a certain amount of money automatically deducted from your paycheck each month to facilitate growing your savings. Once you have a comfortable amount reserved for your emergency fund, you should begin saving for retirement. You may also want to save a certain percentage each month for a vacation, new car, or new home, depending on your financial goals.

No matter what your level of income is, putting money aside every month is a must in order to effectively plan for your future.

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