Is there a magical number we should all be striving to save? $1 per day? $10 per week? $10,000 a year? Or is it a certain percent of our income? How much is enough? Why does every “expert” have a different answer?
You might hear about things like the 50/30/20 rule – 50% for bills, 30% for improving your future (like paying off debt or saving for retirement), and 20% for the fun stuff (like going out, holidays and new clothes). Other articles on the interweb talk about saving set numbers based on your age. Others talk about increasing the amount you save each month. So. Many. Ideas. What’s a spender to do?
There’s nothing wrong with any of this thinking and each approach might work wonderfully. If it works for you, go for gold. While there are lots of opinions about how much we should be saving each month, the truth is, it’s not that simple. There’s no one-size fits all approach to money.
The “how much should you save every month” question is probably not the most useful question to ask yourself.
Instead, we think you should ask yourself “How can I form better savings habits?”.
When it comes to building that bank balance of yours, it’s all about your behaviour. Forming good habits. Saving often.
Establishing sound saving habits until they become second nature is one of the best things you can do for your financial future. We have ideas on habit formation that can help.
So, while we don’t have the magical number for you, we do know that small changes to your behaviour can result in big changes to your bank balance.