The Update

How Much Should I Save?

We all know saving money is important—but figuring out how much to save can feel overwhelming. Whether you’re just starting out, building toward a big goal, or preparing for the unexpected, knowing the right amount to save can bring you peace of mind and help you feel more in control of your financial future.

Start With the Basics: The 50/30/20 Rule

A great place to begin is with the 50/30/20 rule, a simple budgeting guideline that helps you balance your spending and saving.

• 50% of your income should go toward needs (rent, groceries, utilities).
• 30% can be used for wants (dining out, entertainment, hobbies).
• 20% should go toward savings and debt repayment.

That 20% can be split between different goals—such as an emergency fund, retirement, or a down payment on a car or home. The important part is to start saving something consistently, even if it’s small.

Build Your Emergency Fund

Life happens, and unexpected expenses are part of it—whether it’s car repairs, medical bills, or a job loss. Financial experts recommend having three to six months’ worth of living expenses saved in an emergency fund.

If that number feels out of reach, don’t worry! Start small. Try saving one month’s worth of expenses first, then slowly build up over time. Set up automatic transfers from your checking to your savings account so you can “set it and forget it.”

Save for Your Goals

Beyond emergencies, your savings should reflect your dreams and priorities. Maybe it’s buying a home, going back to school, taking a family vacation, or starting your own business. Define your goals and set a clear savings target for each one. Breaking big goals into smaller milestones makes them much easier to achieve—and gives you motivation to keep going.

Plan for the Future

Don’t forget long-term savings like retirement. Even small contributions to a retirement account can grow significantly over time thanks to compound interest. The earlier you start, the more your money works for you.

Every Dollar Counts

Remember, there’s no “perfect” savings number. Everyone’s situation is unique, and what matters most is building a habit of saving regularly. Even $10 or $25 a week adds up over time.

At Rio Grande Credit Union, we’re here to help you create a plan that fits your life. Our free financial coaches can help you set goals, build a budget, and find ways to save more—so you can feel confident about your financial future. Plus, our Make the Change program makes saving effortless! It works like an automatic savings account—your everyday debit card transactions are rounded up to the next dollar amount, and the difference is deposited into your designated RGCU savings account. It’s an easy way to watch your savings grow without even thinking about it.