Get your free financial scoreSign inYour data on this device
Free to use. No account required.

What's a realistic savings rate to aim for if I'm just starting out?

A common benchmark is saving 20 percent of gross income across emergency savings, retirement, and other goals, but that is a target to grow into, not a starting line. If 20 percent feels impossible, start with whatever you can automate, even 3 to 5 percent, and raise it one percentage point every few months or with every raise. The Bureau of Economic Analysis tracks the U.S. personal saving rate, which has often hovered in the mid-single digits, so if you are saving 10 percent you are already ahead of the typical household. What matters most early on is consistency and capturing any employer 401(k) match, which is free money. Increase the rate as income rises and lifestyle creep is the enemy to watch.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures