How Much of My Paycheck Should I Save?

A good target is to save at least 10% of each paycheck if your budget allows.

Aim to save at least 10% of your income, but you don't have to hit that number immediately. If it isn't realistic right now, start with an amount you can consistently afford and increase it over time.

KOHO High Interest Savings

It is a prepaid Mastercard, so you spend your own money while still earning high interest.

With KOHO High Interest Savings, you can:

• Grow your savings up to 3.5% interest

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

How Much Is 10% of a Paycheck?

If you use 10% as your savings target, here's what that could look like:

• $1,000 paycheck: save $100

• $1,500 paycheck: save $150

• $2,000 paycheck: save $200

• $2,500 paycheck: save $250

• $3,000 paycheck: save $300

You can base this on the money you actually receive in your bank account after deductions, which can make it easier to build savings into your monthly budget.

What If I Can't Save 10%?

You don't need to stop saving just because 10% feels out of reach. Even smaller amounts saved consistently can add up over time.

For example, you could start by saving $25 or $50 from every paycheck and increase the amount when your income rises or an expense disappears.

The important part is making saving a regular habit rather than waiting until you can afford the "perfect" amount.

What Should I Save for First?

One of your first priorities can be an emergency fund. Work toward enough savings to cover approximately three to six months of regular expenses.

You don't need to build that amount immediately. Start with a smaller emergency savings goal and continue contributing from each paycheck until you reach a level that makes sense for your expenses.

Once you have emergency savings underway, you can also put money toward goals such as a vacation, down payment, large purchase or retirement.

How Can I Save Money From Every Paycheck?

One of the easiest approaches is to save before you spend. Set up an automatic transfer for shortly after payday so a portion of your income moves into savings before you have a chance to spend it.

Automate savings and making contributions regularly when building an emergency fund.

If 10% works for your budget, that's a useful target. If it doesn't, start smaller. Saving an amount you can maintain every paycheck is better than setting an unrealistic target and saving nothing at all.