Savings: How Much Should Be In Your Account?

A savings account is a crucial component in financial stability. But is there a target number you should be saving up to or is just having something in the bank enough?

Many Americans are living without a savings account and even more are living with an account that doesn’t have enough in it. There are many studies reporting a variety of figures so there isn’t a go-to figure to rely on. The theme however, is that not enough Americans have enough saved.

One of these studies shows the stark reality. According to a study by GOBankingrates 32% of Americans don’t save anything and 58% have less than $1,000 saved. That means that a majority of Americans are living paycheck to paycheck.

How Much Should I Have Saved?

There is no right answer when it comes to how robust your savings should be but there are some recommendations. The research team at JP Morgan Chase recommends you have a savings of 6-weeks of take home pay. If that is too difficult they also say that 3-weeks of pay could be sufficient to cover emergencies enough to not impact your finances severely.

If you want to calculate by expenses some experts suggest that you have three-to-six months of expenses saved. The more of course, the merrier.

What If I Don’t Have Enough?

If you don’t have enough saved right now don’t worry! You can gradually add to it and get there in no time. The main focus should be that all of your expenses are covered right now and sometimes that is all you can do.

To get started saving you have to break down your income and expenses and see if you have any extra cash to stow away. You don’t have to save a lot each month, even an extra $20 here and there will add up over time.

First look at your income and expenses and set a goal for yourself. Then break it down to see how much you can contribute each month. From there you can set up automatic transfers to move a portion of your pay over every check of you can make a plan to do it yourself. It is all about setting a manageable goal that can work in your life.

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