How Much Should I Save Each Month?

When you save for retirement, a car, college tuition, or another goal, breaking your savings down into monthly targets can be helpful. But when you try to determine how much you should be saving each month, the amount varies. The truth is that it depends on your income, your expenses, your responsibilities, and your priorities.  

You don’t have to guess how much to save. A few guidelines can give you a place to start, and our calculators can help you make an actionable plan to save. 

A common budget framework goes by the 50/30/20 rule, which directs half of your take-home pay to cover monthly necessities like rent and utilities, 30% to cover everyday spending, and 20% to go toward savings and debt repayment.  

Does your ideal number sit inside that range? If not, that’s ok. If saving 20% of your income feels out of reach, you’re not alone. Only 41% of U.S. adults could cover an unexpected $1,000 expense using savings alone, according to Bankrate’s 2025 Emergency Savings Report.¹

Different situations call for different savings percentages, and the number only matters in the context of your own life and goals. 

Your ideal savings rate comes down to a few factors: 

Consider a retirement saving timeline. Someone supporting a family on a tight budget may need to start small. In contrast, a 40-year-old with no savings who hopes to retire at 65 may need to save more aggressively. Both have the capability to achieve their goals, but they need different plans.  

Rather than guess, run your numbers through our Retirement Calculator. Enter your income and expenses, and you’ll get a target built around your actual life.   

Once you know your monthly savings number, the next decision is where to put that money. The type of account you choose can change how quickly your money grows. 

For short-term goals like an emergency fund, a high-yield savings account like Forbright Bank Growth Savings keeps your money accessible while it earns a competitive interest rate.   

For money you won’t need right away, a Certificate of Deposit like Growth CD can offer a guaranteed rate in exchange for leaving those funds untouched for a set term.  

A tax-deferred traditional IRA retirement account is also a helpful way to save. Forbright Bank has a Traditional IRA calculator to help you estimate those numbers.   

Here are more free online calculator tools to help you estimate savings to help you get started.

A savings goal only works if you follow it. A handful of habits make consistency easier. 

Automate your transfers. Schedule a recurring transfer into savings so the decision happens without you having to think about it.   

Revisit your plan often. Income and expenses shift over time, and your savings rate should as well. 

You don’t need to save 20% this month to make real progress. Set aside $10 a week, and it can add up to more than $500 a year—a solid emergency fund.   

Whatever number fits your life right now, take a few minutes to run it through the savings calculator. Put that money into a high-yield savings account or CD built to help it grow instead of letting it sit idle. You will be glad you did it!

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.  

¹ https://www.bankrate.com/banking/savings/emergency-savings-report/