Calculate how much to save monthly to reach your financial goals. Plan for emergency funds, vacations, down payments, and other savings targets with interest calculations and timeline planning.
High-yield savings account rate
Financial experts recommend saving 3-6 months of living expenses for emergencies. Start with $1,000 as a mini emergency fund, then work toward the full amount. This covers unexpected expenses like job loss, medical bills, or major repairs.
A good starting point is the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings. If 20% seems too high, start with 10% and gradually increase. Even saving $50-100 per month makes a significant difference over time.
Focus on high-priority goals first, like emergency funds, then tackle others. You can save for multiple goals simultaneously by allocating percentages of your savings budget to each goal based on priority and timeline.
For short-term goals (under 2 years), use high-yield savings accounts or money market accounts. For longer-term goals, consider CDs or conservative investments. Keep emergency funds in easily accessible accounts.
Set specific, measurable goals with deadlines. Track your progress monthly, celebrate milestones, and visualize what achieving your goal will mean. Consider using separate savings accounts for different goals to see progress clearly.