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How much should I save each month?

Saving a percentage of your income each month can help you grow your savings and build a safety net. How much you set aside depends on your goals and budget, but every amount you contribute—even $1 a day—will build your savings in the long run.

How to build savings every month

Crafting a budget can help you manage your spending and find ways to save a portion of every month’s income to put toward your goals. Here’s how you can build a plan for savings into your budget:

  • Income: Start by listing your sources of income and know how much comes in every month. For most people, this can change with the seasons or month to month, so think about accounting for fluctuating paychecks.
  • Monthly expenses: Start with your recurring bills such as rent, utilities and subscriptions. List the consistent costs that you have to pay every month and assign them to a category.
  • Flexible spending: Decide how much you need for your flexible spending budget, which can include food and entertainment costs. These are expenses that can vary and that you can often control.
  •  Save what you can: Find room for savings and decide how much you can allocate, even if you adjust it month to month.

Once you have created your budget, check it often and look for opportunities to save more—it’s not about what you make, it’s about what you keep, and every dollar helps. Here is one more step to bolster your savings strategy:

Start by saving $1 every day

Big goals start with small progress: If savings seems overwhelming, commit to putting aside one dollar every day. At the end of your month, deposit your $30 into your savings account and start the next month with the same strategy. If you find you have leftover money at the end of the month, consider adding another dollar to save $2 every day.

Different ways to save money

Set up automatic savings

Financial technology tools like Chase Autosave can help grow your savings automatically in your bank account. Automation can help support building a savings habit and is an effective way to help create a safety net.

Available through the Chase Mobile App or online, Autosave allows you to set rules for putting away money daily, periodically, or every time you get paid. For instance, you can set a goal that allows Autosave to transfer $20 from your Chase checking account to your Chase savings account once per week. You can also set Autosave to put away a percentage of money into your savings each time you get a deposit.

Pro-tip: Open a second savings account to move money into, then set it and forget it. This should help reduce your temptation to touch your savings.

Use direct deposit

If your employer offers direct deposit, they may also offer the ability to designate portions of your check to different bank accounts. If that’s the case, consider earmarking a percentage of your pay to be deposited into savings. If the money isn't in your checking account, this can help you avoid spending it.

Pro-tip: If you get a raise, consider putting the difference between your new salary and your pre-raise salary directly into savings. Since you’ve been living on your pre-raise salary, you may not notice any difference in your budget but can see your savings grow with each promotion.

Save extra money when you can

If you get a raise, a bonus, an IRS refund or additional income, consider depositing the extra money directly into your savings account. If it’s not feasible for you to save all of the money, consider putting a portion into your savings. Chase Autosave allows you to perform a one-time transfer for these types of irregular payments.

If you're paid on a bi-weekly schedule, look for months where you'll receive 3 paychecks. That “additional” monthly paycheck or a portion of it can be put directly into savings, usually without affecting your monthly budget.

Pro-tip: While it can be tempting to put a large check towards a big purchase, dream bigger and build goals that can’t be achieved with one windfall payment so you can commit to bigger savings.

Commit to daily savings

Even putting aside a dollar every day can help to build up your savings. When you start with a modest effort, you can begin to understand how to plan out a savings fund. As you find more ways to save on everyday expenses, you can increase from $1 a day to $5 a day, until you have a strong savings strategy embedded into your everyday life.

Pro-tip: Your $1 a day savings plan can start today. When you're able to add $30 to your savings at the end of the month, increase your daily savings rate to $2 if you can afford to do so.

Why saving money matters

Build an emergency fund

Having an emergency fund can help you manage life’s unexpected expenses, like a medical bill, a blown-out tire, or home repair. Most Americans don’t have $400 saved, and that could be a good place to start. When building up your savings, it’s important to consider your goals, develop a habit, and stay consistent so you can achieve it. You can use Chase Autosave to set up a Safety Net and automate your savings.

Achieve short-term and long-term goals

Attaching a personal goal to your savings can help motivate you to save more. Once you have built up your emergency fund, put a savings goal in place to keep your momentum going. From financial health goals like paying off credit card debt or saving to buy a home, to big-ticket items for an upcoming birthday or anniversary, goals can help you make smart financial choices whenever you spend.

Long-term goals, like paying for your children’s education or taking a trip, will take more time to realize. By starting to deposit money into your savings account early, you can accumulate money over time and be prepared when the time comes.

Prepare for big purchases

Setting a goal for savings can help build motivation and show you how small savings plans can lead to big achievements. Chase Autosave includes an option to build your “goals,” so your savings plan is tied to a specific savings objective. Whether you're saving for a new bike or a down payment on a home, knowing your dollars are dedicated to a goal can help motivate you to save and reward you with something you thought was beyond your budget.

Where should you save money?

You should consider putting away the money you save into an online savings account. Choosing a savings account with an interest rate will allow your funds to increase at a quicker pace over time. For example, setting aside a portion of your money into a certificate of deposit (CD) means that you’ll get a good interest rate on your savings in exchange for having your deposit locked up for a set time period.

Take a look at your credit cards, products, and any subscriptions as well: some programs will waive fees for positive financial behavior. For instance, you may be able to waive the monthly service fee on an account by setting up automatic transfers.

When you should start saving money

The best time to plant a tree is 20 years ago, and the next best time is today. You can apply the same lesson to savings: build your budget for next month today so you know your income and expenses. Once your expenses have been paid, move the rest towards your savings account and make a habit of tucking your excess funds away so you can grow a savings habit into a savings fund.

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