How Much Money Should You Save Each Month?

January 27, 2016
It’s given that saving money is one of the fundamental step towards financial freedom. Nobody can be called financially free without his or her savings. Your savings could affect how you’ll achieve your goals, live your life and prepare for the future. So on today’s post we will be getting real with our SAVINGS

How Much of Your Income Should You Save Every Month?

Perhaps that question has been on your mind for quiet some time. We were always taught that saving money is important but we weren’t aware of how much it should really be. Of course not all of our income can be put in our reserve money. It all depends on certain circumstance that I will unveil in a moment.

What’s Your Age?

Your idea of perfect savings depend on your age . People in their 20’s will have plenty of time to worry on their retirement so most of their saving goals are short-term. They may be thinking on a car, a condo, a gadget or a branded handbag. Thus, how much you save each will be lower.

Once you hit your 30’s your priorities will differ. You start to build a family of your own and will have to take care of your aging parents too. Your savings will long-term now. You start to think about retirement, your kids education and your health. This will require a bigger amount to save each month.

Your age surely plays a vital role in know how much you should save.

What’s Your Goal?

Goals are just permanent part of every financial move a person should do. They are the reason why you are doing the things you do. More goal-related blog post HERE and HERE.

  • Short-Term Goals are things achievable in less than a year. This could be the vacation abroad you’ve always wanted, a special gift to your loved ones or a debt you’ve wanted to pay off.
  • Mid-Term Goals are things are achievable in 5-10 years time. This could be a house, payment for your wedding and/or start a business. 
  • Long-Term Goals are the ultimate things you want to achieve. Retirement is a solid example of a long-term goal you want to think deeply. 
Have you listed your goals yet? Once you manage to specify your objectives you will be surprised on how quick you are in coming up with the next actions. 

What’s Your Income?

Your income has a lot to with how much you’ll be able to save. Maybe you are thinking a saving goal that’s too much that what you’re being paid. If you want a better savings you need to increase you income, find other sources of extra money you can put in your kaban

Given the three circumstance above, this is how we will approach the whole “How Much Should I Save” question.
     Save depending on your age, goal and income
As your age increases, your goal materializes into even better and bigger one, thus your income will increase too then you can save more. Treat it as a never-ending cycle of wealth. Save in accordance to your span, your reach and your means. The more your income grows, the more your savings should be and not the other way around. 

Two Things Worth Sharing

1. It’s a must that you save on a regular basis.

Saving money should be more than just a task but a rather a habit for everyone. And you can never develop a habit if you are not doing it regularly. Once the paycheck comes automatically save a portion. Live with the rest for your everyday expenses. Again, treat it as a payment you will give to yourself. You deserve it because of your hard work. READ: Personal Financial Habits that will Make You Become Richer.

2. It’s a must that budget.

I know, I know I sound too pushy in the whole budget thing here in SavingsPinay but it’s just how things work. You can never save without a budget. You need that spending plan to give you an idea whether you are over spending your money or to track down where your money goes. 

Stuff Worth Saving For

If you will have a savings goals what would they be? Well, I already had mine but to give you examples you can contemplate here are a few things that you ought to save first and foremost. Start small until it grows as a habit.

1. Emergency Fund

Again this is the amount equal to 3-6 months worth of your income. For more explanation you can check out the following links:

2. Major Expenses

There are goals in your life that you need to save up for. That includes your wedding, your dream car and/or your dream house. You need to slowly save for these things if its part of your goal. 

3. Retirement

You want to grow up happy and still be able to live in the lifestyle you’ve wanted. If that’s the case then you need to start prioritizing your retirement savings. 


I hope with this new saving approach you will find financial peace as to how much you need to save in a month. It’s actually not about the exact amount… what matters most is you set an intention to do so. I have a lot on my plate right now in terms of saving money but instead of discouraging/limiting me… I see these numbers as a motivation to work hard, be ambitious and strive more. 
You owe it to yourself to save.

    Clariza Glino

    Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at, a beauty and lifestyle blog for frugal Pinays and manages,, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at

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