The percentage of each paycheck you should set aside for savings

The percentage of each paycheck you should set aside for savings

The last several years have shown us that saving money is vital.

45% of Americans have less than $1,000 saved, which may not be enough in an emergency.

Saving a portion of every paycheck is crucial to preparing for the worst.

Savings go beyond financial security. Rising interest rates require more money to repay credit card debt.

Having money helps you avoid getting into debt to finance purchases.

Every paycheck should be saved 20%. This is the 50-30-20 budgeting rule.

50% of your wage goes to needs, 30% to wants, and 20% to savings and investments.

In another 80-20 strategy, 20% of your paycheck goes to savings and 80% to requirements and wants.

Find a flexible balance between saving and spending. Anderson believes both ways save 20%.

How much of that 20% should you invest? Aim to save three to six months' worth of living expenses.

Sometimes you can't save a fifth of your salary. Delyanne Money Coach says there's no universal solution.

The goal is to save even $20 of each paycheck. By saving a little each pay, you'll make saving a habit.

It's crucial to save, no matter how much. When you can save more, you'll have been training that muscle.

If you're saving for a short-term, high-priority goal, like an emergency fund, you'll need to save more.

Any amount is better than nothing and will help create the saving habit.