How Much Should You Save Each Month?

Many guides suggest saving 15 to 20 percent of income, but the right amount depends on your goals, debts and stage of life.

Steady deposits add up

Starting with $1,000 and adding $200 per month at 4.5% for 10 years grows to about $31,800. You contribute $25,000 and interest adds roughly $6,800.

A simple order of priorities

• Build a starter emergency fund.
• Capture any employer retirement match.
• Pay down high-interest debt.
• Grow longer-term savings and investments.

Rates change, so treat any projection as an estimate. Automating a transfer on payday is one of the easiest ways to stay consistent.