How Much Should I Save Each Month?

Saving money is one of those goals that sounds simple until you try to decide how much you should actually be putting away.

Should you save a certain percentage of every paycheque? Focus on building an emergency fund first? Save for retirement? Pay down debt?

There isn't one number that's right for everyone. A better place to start is with your goals, your budget and an amount you can realistically save consistently.

Start with what you're saving for

It's easier to save when your money has a purpose. Think about what you'd like to accomplish over the next few months, years and beyond.

Your goals might include building an emergency fund, taking a vacation, buying a vehicle, making a down payment on a home or preparing for retirement.

Once you know what you're saving for, you can work backwards: How much will you need, when will you need it and how much would you need to save regularly to get there?

Our savings calculators can help you run the numbers and see how regular contributions can add up over time.

Make room for savings in your budget

Before deciding how much to save, it helps to understand where your money is currently going.

Take a look at your monthly income and expenses, including bills, groceries, transportation, debt payments and discretionary spending. Our budget planner can help you see everything in one place.

You don't necessarily need to overhaul your spending. Sometimes finding an extra $25, $50 or $100 each pay period is enough to start making progress.

Pay yourself first

One of the simplest ways to build savings is to treat it like any other regular expense.

Consider setting up an automatic transfer from your everyday account to your savings each payday. The money moves before you have a chance to spend it, and saving becomes part of your routine.

Even relatively small contributions can become meaningful when they're made consistently.

See what your savings could become

Time can make a big difference.

For example, if you're saving toward a specific goal, changing the amount you contribute each month — or giving yourself another year to reach it — can significantly change the numbers.

Rather than guessing, try different scenarios with our savings calculators. You can see how your starting balance, regular contributions, interest rate and timeline may affect how much you accumulate.

It can also help answer a more practical question: What would I need to save each month to reach my goal?

Choose the right place for your savings

Where you keep your money can depend on what you're saving for and when you'll need it.

For short-term goals or an emergency fund, easy access to your money may be important. For longer-term goals, options such as a TFSA, RRSP or term deposit may be worth considering.

The important thing is to match your savings strategy to your goal rather than treating all savings the same way.

Review your plan as life changes

Your savings plan doesn't need to be perfect, and it doesn't have to stay the same.

Income changes. Expenses change. Goals change.

Check in on your budget and savings every few months. If you can increase your contributions, great. If things are tight and you need to reduce them temporarily, that's okay too. Consistency over time matters more than hitting an arbitrary number every month.

Ready to see what you could save?

A few numbers can turn a vague savings goal into a much clearer plan. Try our savings calculators to see how your contributions could grow, how long it could take to reach a goal, or how much you may need to save each month.

And if you'd like some help deciding which savings option makes sense for you, make an appointment with a Cascadia advisor. We can talk through your goals and help you build a plan that works for your life.