Last updated on May 3, 2024.

Sure, saving money is important — but how much should you save? And where should that money go? It can be challenging to know exactly how much to save from your paycheck to look after your monthly expenses and long-term financial goals. So, while every situation is different, let’s go over what your payday routine can look like, including how much to save from your paycheck and where to put it.

How much to save from your paycheck.

It’s a good idea to set some money aside for retirement and any big life events or purchases headed your way in the future. As for how much you should save, some experts advise following the 10% savings rule, while others say anywhere between 20-50% is ideal. But regardless of what the internet may tell you, the details of your own unique payday routine aren’t so cut and dry.

How much money you save from your paycheck depends on a few factors, but it’s more about how you spend than how much money you make.

Think about it:

First of all, what are your savings goals? Maybe you want to build an emergency fund or plan a vacation; getting clear on your goals will help determine exactly how much you need and how long it will take to fulfill them.

Plus, whether you’re saving for something specific or just in case, your current debt load, financial goals, and lifestyle also play a role in the amount of savings you should set aside.

So, when it comes to your payday routine, where should you start?

If you’re new to budgeting, try dividing up your paycheck into three chunks: funds for what you need, what you want, and savings or investments. This is often known as the 50-30-20 rule, where 50% of your paycheck goes toward your regular expenses (like groceries and bills), 30% is for nice-to-haves (like a night out at a restaurant or a new pair of shoes), and 20% can be invested.

To make it easy, you can even set up recurring transfers to build your savings automatically over time. In just a few clicks, you can ensure that a piece of every paycheck will get moved to your savings — no matter what kind of account you have.

Where to put your savings.

Ultimately, it’s your payday routine. That means you get to decide where your deposits go. And at Vancity, your money helps fund local, environmental, and social initiatives when you’re not using it — so you can feel even better about growing your savings with us. Plus, there’s never been a better time to put your money where your values are. 

Whether you already bank with Vancity or you’re a soon-to-be member, there are plenty of account options for your future savings, including our:

• Promotional Jumpstart™ HISA: Earn more with this high interest savings account. There’s no monthly fee or minimum balance on our limited time offer².

• Term deposits: If you’re looking to invest your savings for the short- or medium-term, our term deposits or GICs offer great rates and guaranteed returns.

Let’s get started.

Ready to start saving? Connect with us to find the best savings account for you (and one that helps your community, too). Whether you’re seeking short-term savings or long-term investing, at Vancity, you have plenty of options that will benefit you, your community, and the planet.

And remember — even if you can only save a little at a time, when it comes to savings, something is always better than nothing.