{"id":250852,"date":"2025-09-24T06:20:22","date_gmt":"2025-09-24T06:20:22","guid":{"rendered":"https:\/\/www.europesays.com\/us\/250852\/"},"modified":"2025-09-24T06:20:22","modified_gmt":"2025-09-24T06:20:22","slug":"heres-how-much-of-your-paycheck-you-should-save-each-month-according-to-an-expert","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/250852\/","title":{"rendered":"Here\u2019s How Much of Your Paycheck You Should Save Each Month, According to an Expert"},"content":{"rendered":"\n

You\u2019re a functional adult (well, most of the time) and you know you\u2019ve got to prioritize saving money<\/a>. But figuring out exactly how much of your paycheck needs to go into your savings isn\u2019t always easy \u2014 sometimes, you suffer from an overload of approaches. There\u2019s the famed 50\/30\/20 rule<\/a>. Zero-based budgeting. The envelope system. It\u2019s enough to make your head spin.<\/p>\n

Learn More: Here\u2019s Why Gen Z is Embracing Frugal Living According to Brian Jung<\/a><\/strong><\/p>\n

Find Out: 3 Advanced Investing Moves Experts Use to Minimize Taxes and Help Boost Returns<\/a><\/strong><\/p>\n

Each approach has its own guidelines and general rules of thumb \u2014 and parsing through all of them feels a little intense. Anita Kinoshita<\/a>, CFLP, creator of Her FI Story<\/a>, understands your confusion. She knows that there are so many competing messages out there about how to divvy up your paycheck to maximize savings.<\/p>\n

But she also knows that the only right approach is the one that\u2019s right for you. GOBankingRates connected with Kinoshita as part of our Top 100 Money Experts<\/a>\u00a0series to learn how much you should really save from your paycheck every month<\/a>. Her answer may surprise you.<\/p>\n

Your neighbor swears the 50\/30\/20 rule helped them pay down their credit card debt<\/a> while taking a European vacation every year.\u00a0A friend tells you that zero-based budgeting has changed her entire mindset on spending.<\/p>\n

But the high cost of living in your area means that, sadly, 50% of your income won\u2019t fully cover essentials like food and housing. Or the idea of making every purchase \u2014 even a stick of gum \u2014 align with your values seems emotionally exhausting. <\/p>\n

Kinoshita has good news for you. You don\u2019t have to follow these approaches to the letter. If you find something that has some ideas you like, you can treat it as a helpful guide to get you started. Remember, budgeting plans<\/a> aren\u2019t one-size-fits-all. Blindly following one plan without thinking about the implications on your life can cause money misfortune you wouldn\u2019t anticipate. <\/p>\n

She breaks down a hypothetical example involving the 50\/30\/20 rule: \u201cIf you were debt free, had zero saved for retirement<\/a>, and had no short-term savings planned, saving 20% of your post-tax income would mean you could retire in 37 years,\u201d she said. \u201cNow, 20% saved (or invested) is arguably better than 0, but are you okay with being dependent on a paycheck for 37 more years?\u201d <\/p>\n

If your answer to that question is understandably no, being locked into the 50\/30\/20 plan would be a bad idea.<\/p>\n

Read Next: The One Dangerous Habit Keeping You in Credit Card Debt, According to Liz Claman<\/a><\/strong><\/p>\n

So, if one of the many formal saving strategies blazing up the bestseller lists or trending on TikTok isn\u2019t for you, how do you find the right amount of your paycheck to sock into savings every month? Kinoshita\u2019s response: it depends.<\/p>\n

\u201cThe \u2018right\u2019 percentage of your paycheck to save each month depends on your goals, timeline, and the quality of life you want to have today,\u201d she said. \u201cThere is no universal \u2018right\u2019 percentage, as these variables aren\u2019t fixed for everyone.\u201d<\/p>\n

It\u2019s better to start with your goals and work backwards to determine how much of your paycheck to put away. Thinking about her own goals \u2014 retiring in her 40s, eating omakase twice a year, and traveling at least once a year \u2014 helps Kinoshita determine how much money to pull out of her paycheck into savings.<\/p>\n

\u201cTo determine the right amount of money I need to keep from my paycheck,\u00a0I need to start with the goals in mind, then think about an amount I need to put away,\u201d she said. \u201cA percentage isn\u2019t always a helpful place to start.\u201d<\/p>\n

Developing a personalized plan oriented around your goals also gives you flexibility when life happens. Sometimes the rent goes up, or your car needs repairs<\/a>. Treating your savings plan as a \u201cliving document\u201d that can change as your circumstances do can help you better track your savings and make key adjustments when you\u2019ve been overspending.<\/p>\n

If you\u2019ve noticed that your expenses are higher than usual, and you\u2019re not able to put as much from your paycheck into savings, Kinoshita wants you to conduct an expense audit<\/a>. Ask yourself about your top three or four expenses and whether there\u2019s a way to cut back or eliminate them.<\/p>\n

\u201cYour top three or four expenses are likely needs, but those are not exempt from taking a mindful reconsideration,\u201d she said.<\/p>\n

To make your paycheck stretch further, she wants you to think about what you\u2019re spending on that isn\u2019t bringing you any value or satisfaction.<\/p>\n

\u201cBy taking this approach, you avoid the unhelpful approach to saving that focuses only on categorizing your expenses into needs and wants,\u201d she said.<\/p>\n

There\u2019s no one-size-fits-all approach to how much of your paycheck you should save each month. There\u2019s only the best option that aligns with your goals and vision.<\/p>\n

This article is part of GOBankingRates\u2019 Top 100 Money Experts<\/strong> series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub<\/a><\/strong> \u2014 and you\u2019ll be entered for a chance to win $500.<\/p>\n

More From GoBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: Here\u2019s How Much of Your Paycheck You Should Save Each Month, According to an Expert<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"You\u2019re a functional adult (well, most of the time) and you know you\u2019ve got to prioritize saving money.…\n","protected":false},"author":3,"featured_media":250853,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[132838,64,132839,255,58170,67,132,68,132841,132840],"class_list":{"0":"post-250852","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-anita-kinoshita","9":"tag-business","10":"tag-kinoshita","11":"tag-personal-finance","12":"tag-savings-plan","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us","16":"tag-your-paycheck","17":"tag-zero-based-budgeting"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115257830567968306","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/250852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=250852"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/250852\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/250853"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=250852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=250852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=250852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}