How Much Money Should I Have in Savings?

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When you ask yourself, how much money should I have in savings, the answer can feel frustratingly vague. That's because the right amount depends on your lifestyle, income stability, and financial goals- not just a number on a chart. While a general rule is to aim for three to six months of expenses, getting there doesn't happen overnight. It starts with small, consistent habits like automating transfers and tracking spending. In this article, we'll walk through how to calculate your savings target, where to keep your cash so it works for you, how current trends shape saving behavior, and how tools like Cheers Credit Builder make it possible to grow your savings and credit simultaneously. Whether you're just starting or trying to get back on track, there's a way forward- and it begins with knowing what to aim for.

You Don't Need a Perfect Number-You Need a Plan

Most people don't have six months of expenses saved. And that's okay. The goal isn't perfection-it's progress. Start with what you can. A typical savings target is three to six months of basic expenses: rent, utilities, groceries, insurance, and minimum debt payments. If you spend $2,000 monthly, that's $6,000-$12,000. That number might initially feel huge, but don't let it stop you. Saving your first $500 builds confidence. From there, you can grow your savings steadily.

One of the most effective ways to build momentum is with a 30-day financial reset. This trending method encourages tracking everything you spend, cutting back on extras, and clarifying what you can realistically save. When people pair this with the 50/30/20 rule (needs/wants/savings), they often find money they didn't know they had. It's helpful to jumpstart your answer to "how much money should I have in savings" with a practical, hands-on approach.

Where to Keep Your Savings

Saving is only part of the equation- where you store it matters, too. Money sitting in a checking account isn't helping you. Many people turn to high-yield savings accounts (HYSAs) or money market accounts. These accounts offer much better interest than traditional savings accounts, often with no fees or minimums.

Keeping your emergency fund in a HYSA preserves your access to funds and helps fight inflation. That interest can make a difference if you're building toward a goal like saving three months of living expenses. When you're thinking about how much money you should have in savings, don't forget to consider how your account choice affects your long-term growth.

What Does Progress Look Like Over Time?

Age-based savings benchmarks can serve as helpful checkpoints: one year's salary saved by 30, two years by 40, and so on. But life doesn't move in clean financial milestones. Your savings journey looks different if you've had student debt, changed jobs, or supporting a family.

Instead of stressing whether you're on track for your age, focus on your readiness. Could you handle a job loss or medical bill without falling into debt? That's a more useful measure than a target based on age alone. Asking, "How much money should I have in savings?" becomes less about comparison and more about whether your savings give you flexibility and peace of mind.

For those exploring early retirement, the FIRE (Financial Independence, Retire Early) movement suggests saving 50-70% of income and retiring in your 30s or 40s. You don't have to go that far, but the mindset below your means, investing intentionally, and avoiding lifestyle inflation can push your savings goals forward at any stage.

Build Credit While You Save

If you're building credit or starting fresh financially, you don't have to choose between savings and credit goals. With Cheers Credit Builder, you can do both. Each monthly payment is reported to all three credit bureaus and goes toward a locked savings account. There are no hidden fees, no membership charges-just a low, transparent 1% monthly APR.

You receive your total savings back when the loan term ends, minus interest. That means you're not just paying for credit access-you're also growing your savings month by month. If you're asking, "How much money should I have in savings?" but feel like credit is holding you back, this tool can give you a double win.

Cheers is not a bank—deposit account held by Sunrise Bank, Member FDIC.

What You Can Do Today

Don't wait for your next raise or a perfect moment to start saving. You can open a high-yield savings account today. Automate even $25 a month. Try a 30-day reset to get a handle on your spending. If you're also focused on improving your credit, explore how a credit-building loan like Cheers can help you save and report payments simultaneously.

When someone asks you, "How much money should I have in savings?" your answer can be grounded in real progress- not just good intentions. The right tools make that possible.