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How Much Should I Save Each Month?

April 13, 2023

Saving money. We all need to do it, yet it can be challenging to navigate. How much should I save each month? How can I stick to a budget? Where do I start?

You’ve come to the right place! The financial professionals at Fibre Federal Credit Union are here to help you figure out how much to save each month and the best budget to keep your savings on track.

Keep reading to learn more about how much you should save each month.


It seems that everyone has a budget idea these days! Thankfully, some tried-and-true budget plans can fit any financial situation.

But before we get started, it’s important to remember that a budget is unique to your situation and your situation only. Budget strategy can vary based on age, income level, existing debt, and other personal circumstances. Here at Fibre Federal, we can help you find the best budget to fit your needs. Consider one of the following plans to start budgeting today.

50/30/20 Budget

There are a few common budgets based on percentages with the idea to divide your income into separate categories. The most popular is the 50/30/20 rule. When you follow this budget plan, you allocate your income by spending 50% on needs, 30% on wants, and 20% on savings.

“Needs” are the bills that must be paid or the things necessary for survival (think rent/mortgage, car payment, groceries, health care, etc.). A “want” is something you can live without—even if you don’t want to! This includes entertainment, vacations, gym membership, etc. Finally, “savings” means saving money in a deposit account, investment account, or retirement account.

While the 50/30/20 budget plan is right for a lot of people, it doesn’t mesh with everyone. You must take into consideration your unique situation. Some adjustments to the percentages may need to be made to fit your particular needs.

70/20/10 Budget

Another percentage-based budgeting rule, the 70/20/10 model, combines your needs and wants into one category. Your spending target is 70% monthly spending on needs and wants, 20% on savings and investments, and 10% on debt repayment or donations.

Since your monthly spending is combined into one bucket with this plan, it might be wise to determine how much you spend each month for standard cost-of-living expenses. This way, you can keep a closer track of that 70%. Again, the exact percentages may have to be adjusted to fit your situation.

This model also has you putting away 20% toward savings. The final 10% allows you to pay down your debt faster or use it to donate to a charity or cause.

Cash-Based Saving

While the above models are percentage-based, there are also cash-based approaches to budgeting.

  • The Envelope System involves putting your money into separate envelopes each month, based on spending categories. Once an envelope is empty, you can no longer spend in that category for the month.
  • The Pay Yourself First plan is focused primarily on saving. The saving part of the budget comes first—even before immediate expenses.
  • The Zero-Based Budget plan accounts for every dollar every month, with the goal that your income minus your expenditures will equal zero by the end of the month.


It’s good to have some budget plans in mind, but you still have to take that first step toward your saving goal. You may be surprised at how easy it is to make saving a regular habit.

Save First

When you save first, you make saving a priority. So, when you receive a paycheck or income, immediately put a set amount into your savings. Following the two percentage-based budget examples above, this would equal 20% of your income, but it could be more.

Make Saving Automatic

You don’t have to worry about saving first if you save automatically! You can set aside a portion of each paycheck automatically. For instance, when you have a retirement account, you can have part of your paycheck automatically go toward retirement. You can also arrange for automatic transfers from your accounts to keep savings on track.

Set a Goal

If you’re just getting started saving, it might motivate you to pick out a specific goal and save toward that. If you need a new car or want to take a vacation, you can start saving with that goal in mind.

This strategy can also help you test out how much to save each month and find an amount that works for you and your situation. Soon, saving will be a regular part of your life.

Keep Accounts Separate

If you have a hard time separating wants from needs, having separate accounts may be helpful. A Fibre Federal checking account is good for regular, monthly expenses. But a savings account is useful to make sure you are putting aside a set amount each month. Keeping the funds separate will help you monitor your spending and your savings.


When you are ready to save, there are a lot of ways you can start. Fibre Federal has an option that will work for you!

Savings Account

The most obvious place to save is a savings account! A Fibre Federal Personal Savings account will help you save—and grow—your money. Just by simply saving money, you can earn dividends on your balance. It will be rewarding to watch your balance increase!

We also offer youth savings accounts designed for those 18 and under. This can help them to develop smart saving habits early on in life.

Money Market Account

A money market account can sometimes earn higher dividends than a regular savings account. At Fibre Federal, you can open one of our Money Market Savings accounts with a minimum opening deposit of $1,500. This can be a perfect option if you want to take saving to the next level!

Individual Retirement Accounts (IRAs)

Ready to start saving for retirement? Fibre Federal offers Traditional and Roth IRAs as well as IRA Certificates with competitive rates to help your money grow as you work toward retirement.


Certificates are another way to save money while earning dividends, often at a much higher rate than a traditional savings account. Since Fibre Federal offers many different types, there is sure to be one that is ideal for you.

Holiday Savings

Remember when we said earlier to pick a goal? Our Holiday Club savings account lets you save specifically for the holidays. With as little as $5 to open an account, you can start saving to make the holidays bright!


We know saving each month is important. We also know it’s personal. Fibre Federal will work with you to make sure saving each month is manageable with your budget, your income, and your lifestyle.

Learn more about our savings account options today and get started!

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