What percent of one’s income should be reserved for savings?

Responses

Five percent
Five percent

Ten percent
Ten percent

15 percent
15 percent

20 percent

1 answer

The commonly recommended guideline for savings is to set aside 20 percent of your income for savings. This approach is often referred to as the 50/30/20 rule, where 50% of your income goes to necessities, 30% to discretionary spending, and 20% to savings and debt repayment. However, individual circumstances may vary, and you may want to adjust these percentages based on your specific financial situation and goals.