As a guide, it has been recommended to save at least 20% of your income each month, and this is sometimes part of a savings approach called the ‘50 30 20 rule’. This entails using 50% of each pay packet for essentials, 30% for living your life (the ‘disposable’ part of your income) and 20% on savings, repayments and pension contributions. It would be lovely if everybody was in the situation to follow this rule, but of course, the appropriate percentage will vary depending on your financial circumstances. Here are some more factors to consider: Financial Goals: Your savings approach will likely depend on your short-term and long-term financial goals. For example, if you have specific goals such as buying a house, starting a business or saving for retirement, you may need to save a higher percentage of your income each month to meet those goals. Expenses: Your monthly expenses, including essential costs like your rent, transportation costs and groceries, as well as ‘disposable’ spending like entertainment and dining out, will impact the amount you save. If your expenses are high, you may need to save a higher percentage of your income to ensure you're able to meet your savings goals. Debt Payments: If you have debts such as student loans, credit card debts or a mortgage, you may need to allocate a portion of your income towards paying off those debts. This will impact the percentage of your income that you can save each month. Emergency Fund: Your financial peace of mind would likely benefit from an emergency fund to cover unexpected expenses such as car repairs or losing your job. Building an emergency fund should be a priority. Once you have built up an emergency fund, you can allocate a higher percentage of your income towards other savings goals. Retirement Savings: Saving for retirement is crucial. Workplace pensions often take your contribution out of your wage (after you have opted in) and sometimes your employer will match or even exceed your monthly contribution. Other Financial Priorities: You may have other financial aims such as saving for education, a deposit on a home or another major purchase like a new car. Consider these when determining the percentage of your income to save each month. It’s a good idea to create a budget and track your expenses to ensure you're saving what you need to save each month to meet your financial goals. Consulting with an expert financial advisor will also help determine the right savings percentage based on your circumstances. KGJ is on hand to help you with bespoke financial advice.