How Much You Should Save A Month To Reach Your Goals


Savings goals should be manageable and uncomplicated. See how much money you should save a month to reach your goals.

How Much Money Should You Save A Month?

We all know savings is important — almost 98% of Americans have some money in savings. But coming up with an achievable savings goal can be tricky. You may ask yourself how much should you save a month, how long will it take to save up, and how much is enough savings. We're here to walk you through the process of coming up with a monthly savings plan.

You don't have to start big. In fact, the best way to save money is by taking out small amounts that you might not even notice are missing from each paycheck. That way, you're more likely to stick with a savings goal. You don't want to put so much in your savings that you end up pulling from that account every month to cover bills. Savings works best with a "set it and forget it" approach. 

If saving money is daunting to you, don't worry. We'll highlight exactly how much you should be putting away each month to get the ball rolling on your savings account.

Why Should You Prioritize Saving Money?

Saving money may sound boring, but it actually makes life more spontaneous. You can join your friends on a last-minute ski trip when you have travel funds saved up. You feel more comfortable taking a pay cut to pursue a job you love when you have an emergency fund. You can buy that expensive pair of shoes without worries when you have a stash of cash earmarked for shopping.

Unexpected expenses will inevitably pop-up in the future — and saving money ahead of time is the best way to deal with them. Having monthly savings means you stress less about being able to afford emergencies, and you are more flexible when life brings changes. You'll choose to prioritize your spending on what matters most to you.

How Much Should You Save?

When deciding how much to save, Senator Elizabeth Warren created a helpful guideline called the 50-30-20 Rule: Try to put 20% of your income toward goals like save vs pay off debt. If it is easier for you to look at hard numbers, you can use this strategy. Plan to put 20% of what you make each month into a savings account. (Or try doing a budget percentage breakdown to see how much you should save per paycheck.)

However, this method can be difficult for people with variable income or who need concrete goals to work toward. Instead, try creating savings goals around your life plans and objectives. When you think short-term, you may want to:

•         Buy a car

•         Go on a shopping excursion

•         Move into an apartment of your own

•         Vacation on a budget

When thinking more long-term, you may be hoping to:

•         Become a homeowner

•         Retire early

•         Save for a college fund

All of these are fantastic objectives, and only you can decide which types of money goals you want to pursue. But remember: You can do anything, but you can't do all things. So start by picking your top short and long-term objectives. Then, create savings goals around those items.

Consider an Emergency Fund

An emergency fund is exactly what it sounds like — cash used toward an unexpected difficulty. Think about creating a monthly savings goal for things like medical bills, vet expenses, or car repairs. Calculate your emergency fund amount and put money in that fund once or twice a month. You can divvy these funds into smaller pockets or have one lump sum waiting to be used in an emergency. Then, don't look at the account for a while; you'll be surprised how quickly it adds up.

Consider Your Individual Situation

It may feel impossible for you to save much at all right now, and that is understandable. If so, start small — even $10 or $20 per month adds up at the end of the year. Do whatever you can right now, and try your best to leave the savings alone instead of spending it. It could be quite beneficial to start with a list of your monthly expenses.

For others, it may feel like you need to spend your money more consciously. For example, if you like to visit new cities, you might need a travel fund; if you like to buy all the latest gadgets, you might need a shopping fund or wishlist. Of course, these extras will still feel like indulgences, but enjoying them won't put you in debt. Your savings goals and your financial literacy go hand-in-hand.

Getting Started Saving More Money

So, where do you begin when you're trying to reach your savings goals? First, you'll want to evaluate your priorities. For example, if you want to start saving for a new car, it may not make sense to spend hundreds each month on concert tickets. Instead, you could decide to put that cash in a savings account. Understanding what you really want helps you to use your money more wisely.

Another possibility is to try to earn more or increase your salary. This option may sound challenging, but adding a side job like dog sitting or tech support that you do one or two nights a week will increase your income. Also, if you have been at your company for a while, consider asking for a raise. Show your boss a detailed list of how you have been a valuable employee and see what happens. It never hurts to ask.

If it's hard to remember to make a transfer every month, try automatic transfers. You can set up an auto-transfer from your checking account to your savings account once or twice every month. That way, you won't forget to transfer the money — and you don't see the money leaving your account, which makes it sting less.

There are also little, easy ways to save money that just add more to the pot.

A Helping Hand on Your Savings Journey

There's no need to dust off those Excel skills before setting up your savings goals. The Monorail app makes the whole process easy. With the app, you can enter your target date or budget, and it takes care of the math for you. The app will tell you how much to deposit each day, week, or month — how often is up to you. You'll find yourself staying on track to your savings goals before you know it.

See what it's like to save with Monorail.

Stay in the Know!

Subscribe to our exclusive mailing list.

Fantastic! You’ve been added to the list.
Oops! Something went wrong while submitting the form.

Investment App

Get Started
No items found.

Out of your wallet. Into your pocket.

$20 Referral Reward

For a limited time, Monorail is offering a $20
reward when you refer a friend to the app.

This referral reward is only available to new
customers who sign up for Monorail and enter the
referral code they have received from an active
Monorail user.

How to qualify

  • Sign up
  • Open a Monorail account
  • Deposit into that account
  • Friends must also sign up, open a Monorail account, and deposit into the account
  • Receive a $20 reward after referred friends received their signup bonus

How do I refer a friend?

In the menu / referrals section of  the app there is a code that can be copied and sent to the referred person, a link that can be shared with a referred person, a share option that allows to share the link by standard phone sharing options.

What action does the referred friend have to do?

A referred person, when signing in has to enter the referral code received. For the referral to be
accepted and bonus to be sent to the referring
person, the referred user has to fulfill the conditions of  the signup bonus program.

What reward will I receive?

Monorail will send you a $20 cash bonus for signing up and referring friends.

The funds deposited as bonus amounts can’t be
withdrawn from the app within 6 months from the
date of  receiving the bonus. The funds can be invested into any product available in the Monorail app and can stay after this 6 month period.

For additional questions, please contact Customer Support at