How Much Of Your Income Should You Save?

Saving is essential for financial stability. While 20% of your income is often recommended based on the 50/30/20 rule (50% for necessities, 30% for wants, 20% for savings), the right amount for you may vary depending on your financial situation and goals. Most sources advise to aim for 20% for your savings. This includes emergency funds, retirement savings, and investments. As you continue to save, adjust that rate as needed based on your income, expenses, and financial goals. There may be times that a particular goal, such as a down payment on a home, may warrant saving more in order to reach that goal. The most important key to remember is to make saving a habit. Consistent, even small, contributions add up over time.

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XML Financial Group and its Wealth Advisors are not licensed tax or legal professionals and do not offer tax or legal advice. These materials are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Individuals should consult their personal tax or legal professional regarding tax filings, such that may be required for certain trusts, retirement and ERISA plans, and any tax- or legal-related investment decisions.