This year you've resolved to start saving more money and spending less. But how much of your monthly paycheck should go to savings? Many experts agree that if you are young and just beginning to save, you should allocate at least 20% of your income to savings. Keep reading to explore how putting a little money away each pay period can help lead to financial independence.
Many people subscribe to the 50/20/30 rule for budgeting your money when determining how much of their paychecks should go into savings. This plan divides your income into three spending categories and allocates a percentage of your income to each.
Of course, when creating a budget, it's important to keep in mind what is realistic and comfortable for your financial situation.
While the 50/20/30 rule allows for some flexibility, these percentages should be goals for young people who are just starting to save for their retirement and emergency funds.
The rule also assumes that you are earning 5% interest on your saving deposits and want to have enough retirement savings to be able to withdraw 4% of your savings for annual expenses in retirement.
When you decide how much of your check you want to put into savings, Synchrony Bank has award-winning products that can help you in your financial journey.
Opening a high yield savings account with Synchrony Bank is easy and fast. Our savings accounts allow for quick withdrawals online, over the phone or with an ATM card*.
In addition to our award-winning customer service, customers also find that we have no minimum balance or monthly service fee on our high yield savings accounts. Our accounts are FDIC-insured up to $250,000 per depositor for each ownership category.
Click here to open a savings account or call Synchrony Bank at 1-844-345-5789 for help with your savings plan today.
*Federal regulations limit the number of electronic and telephone transactions you can make with your High Yield Savings and Money market accounts to six transfers or withdrawals per monthly statement cycle. If you exceed these limits, we may close your account.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.