How To Save 50% Or More Of Your Income (2024)

Hello! If you are new here, welcome to my post detailing the ways you can learn how to save 50% or more of your income. I suggest that you read my welcomepage(which lists my most popular and helpful posts) and my latest monthly blogging/online income report. Before I started blogging, I thought a good percentage…

Before I started blogging, I thought a good percentage to save each month was anywhere from 10% to 20%. I have even readan article where a “financeexpert”recommended 5% for retirement savings because they said it was good enough.

Now that I look back on those figures, that is just not nearly enough.

However, that’s what many news articles will tell you. They will tell you that anywhere from 5% to 20% is all you really need. That might work for some, but that’s just not good enough for me.

Recently, I was talking to someone who told me that they save around 85% of their after-tax income each month. I thought that was absolutely insane, butI was a little jealous.

This person goes a little to the extreme in order to save this crazy amount of money each month, but they are happy and that’s all that matters, right?

Right now, we save around 60% of our income. That amount could be a little bit higher but we recently had our wedding (and shoveled a lot of our money towards that), we have been traveling more (we have bought a fair amount of camping and hiking equipment in the past 2 months), and a lot of my business income each month goes towards taxes.

Saving a decent percentageof your income each month can mean that you can reach your financial goals quicker. I was able to pay off my $40,000 student loan debt because of my savings habit!

Here are different ways to save 50% or more of your income:

Make more money so that you can save half your income each month.

Making more money can really help you reach an income percentage goal of over 50%. This is because there is usually only so much money you can save, but the amount of money you can make is endless.

You could work a part-time job, a full-time job, multiple jobs, start a business, freelance, and so on. You could also search for passive income and bring in more money with minimal effort.

There are so many things you can do out there to try to make more money.

Some side gigs you may be interested in may include:

Blogging is how I make a living and just a few years ago I never thought it would be possible. I made over $150,000 last year by blogging and will make more than that in 2015. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.95 per month plus you get a free domain if you sign-up through my tutorial.
Becoming a virtual assistant.
Survey companies I recommend include Survey Junkie, Pinecone Research, Opinion Outpost, Prize Rebel,and Harris Poll Online. They’refree to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Become an Uber or Lyft driver –Spending your spare time by driving others around can be a great money maker. Read more about this in my post –How To Become An Uber Or Lyft Driver.
Swagbucks is something I don’t use as much, but I do occasionally earn Amazon gift cards with very little work. Swagbucks is just like using Google to do your online searches, except you get rewarded “Swagbucks” for the things you do through their website. Then, when you have enough Swagbucks, you can redeem them for cash, gift cards, and more. You’ll receive a free $5 bonusjust forsigning uptoday!
InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing upthrough my link, you will receive $5.00 for free just for signing up!

Related articles on how to save 50% of your income:

75+ Ways To Make Extra Money
Ways To Make An Extra $1,000 A Month
How To Start A WordPress Blog On Bluehost
So You Want to Be a Freelance Writer?
How To Make Money Blogging
6 Ways To Be More Frugal and Save Thousands

Lower your budget so that you can save half your income each month.

Okay, one of the reasons for why I am able to save so much money each month is because of the amount of money I make. I am not going to try to hide that.

However, just because you make less money does not mean that you can’t save moneyas well.

The person who I mentioned above who saves 85% of their income makes around $3,000 a month. Yes, so that means they spend $450 a month. I know this isn’t possible for everyone, but if this person can cut their budget then I’m sure others can save more than 20% of their income.

There are many different expenses that you can probably cut out of your budget or at least lower. Just because you are lowering your budget doesn’t mean that you are going to hate life.

Some expenses you can lower or ways to save money include the below. Like I said, everything isn’t for everyone, but even a small change can help you out.

Lower your cell phone bill.Instead of paying the $150 or more that you spend on your cell phone bill, there are companies out there like Republic Wireless that offer cell phone service starting at $5.YES, I SAID $5!If you use myRepublic Wireless affiliate link, you can change your life and start saving thousands of dollars a year on your cell phone service. I created afull review on Republic Wirelessas well if you are interested in hearing more. I’ve been using them for over a year and they are great.
ATM fees. Why do people do this to themselves?
TV. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu. Buy a digital antenna and enjoy free TV – this is what we do!
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too!Plus, when you sign up through my link, you also receive a free $10 gift card bonus to Macys, Walmart, Target, or Kohls!
Restaurant spending. Start eating at home more! Become an amazing at-home chef and make your family love your new found skills 🙂
Bring your lunch to work. When I had my day job, I always brought my lunch. This was to save money, but also because I hated wasting most of my lunch hour driving somewhere to get food.
Cut your travel budget.There are plenty of ways to travel on a budget. One way is to start earning credit card rewards.
Use a programmable thermostatso that you can heat and cool your home efficiently and more affordably.
Pay bills on time. The goal here is to try to avoid any late fees.
Shop around for insurance. This includes health insurance, car insurance, life insurance, home insurance and so on. Insurance pricing can vary significantly from one company to the next. When we were shopping for car insurance last, we found that our old company wanted something like $205 to insure one car for one month, whereas the new company we have now charges $50 a month for the same exact coverage. INSANE!
Save money on food. I recently joined $5 Meal Planin order to help me eat at home more and cut my food spending.It’s only $5 a month (the first four weeks are free too) and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
Fuel savings. Combine your car trips, drive more efficiently, get a fuel efficient car, etc.
Trade in your car for a cheaper one. For us, we are car people. Cars are one of our splurges. However, if you only have a nice car to keep up with the Joneses, then you might want to get rid of it and get something that makes more sense.
Live in a cheaper home. I’m not saying you need to go live in a box, but if you live in a McMansion then you may want to think about a smaller home. This way you can save money on utility bills and your mortgage payment.
Learn to have more frugal fun. We don’t spend anywhere near the same amount of money on entertainment as we used to. There are plenty of ways to have frugal fun.
DIY certain projects. I recently did a post about DIY wedding ideas and whether they were worth it or not. Read it! 🙂
I highly recommend that you check out Personal Capital(a free service) if you are interested in gaining control of your financial situation. Personal Capital is very similar to Mint.com, but 100 times better as it allows you to gain control of your investment and retirement accounts, whereas Mint.com does not. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation, your cash flow, detailed graphs, and more. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more, and it is FREE.

I spend less money than I used to and I am happier than ever.

Are you trying to save 50% or more of your income? Why or why not? What is your savings rate right now?What are you doing to reach your goal of saving more of your income?

How To Save 50% Or More Of Your Income (2024)

FAQs

Is it possible to save 50% of your income? ›

If you're a dual-income couple, the easiest way to save half is by living on one person's income while saving the other. Start by living on the higher of the two incomes. Spend several months adjusting to this budget. Once you're comfortable with this, try to transition to living on the lower of the two incomes.

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Should I invest 50% of my income? ›

A common rule of thumb is the 50-30-20 rule, which suggests allocating 50% of your after-tax income to essentials, 30% to discretionary spending and 20% to savings and investments. Within that 20% allocation, the portion designated for stocks depends on your risk tolerance.

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Is it possible to save 40% of income? ›

It's not easy, but it is possible to increase your savings rate. To contribute 20 percent or more of your earnings to long-term investments… and even to start saving 40 percent of your income.

What is the 50 rule for savings? ›

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

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What is the $1000 a month rule for retirement? ›

One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.

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How much should a 30 year old have saved? ›

Fidelity suggests 1x your income

So the average 30-year-old should have $50,000 to $60,000 saved by Fidelity's standards. Assuming that your income stays at $50,000 over time, here are financial milestones by decade. These goals aren't set in stone. Other financial planners suggest slightly different targets.

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Is $50,000 in savings good? ›

If you're nearing retirement with just $50,000 in savings, the reality is that you're frankly not in the best shape. The average 60-something has a retirement savings balance of $112,500, according to Northwestern Mutual. Even that, frankly, isn't a ton of money.

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Is saving $1500 a month good? ›

Saving $1,500 per month may be a good amount if it's feasible. In general, save as much as you can to reach your goals, whether that's $50 or $1,500. You could speak with a certified financial planner to help develop a plan for your finances if you aren't sure how much money to save regularly.

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Is 50k saved at 30 good? ›

By 30, it would be beneficial to have $50,000 saved. This comes from the goal of being able to replace about 70% to 80% of your pre-retirement income in retirement.” While having the equivalent of your annual salary saved up by 30 may seem unattainable, Kovar believes it's achievable if you start saving in your 20s.

How many Americans have 300k in savings? ›

Going up a little more, just 6% have between $100,001 and $200,000 saved. Few Americans have saved more than $300,000: 4% have between $350,001 and $500,000. 4% have saved between $500,001 and $750,000 and another 4%, have more than $750,000 saved.

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How much money do I need to invest to make $4000 a month? ›

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

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What is the 7 rule for savings? ›

The seven percent savings rule provides a simple yet powerful guideline—save seven percent of your gross income before any taxes or other deductions come out of your paycheck. Saving at this level can help you make continuous progress towards your financial goals through the inevitable ups and downs of life.

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What's the average 401k by age? ›

Average and median 401(k) balances by age

Age range	Average balance	Median balance
25-34	$30,017	$11,357
35-44	$76,354	$28,318
45-54	$142,069	$48,301
55-64	$207,874	$71,168

2 more rows

Mar 13, 2024

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What is the 25x savings rule? ›

The 25x rule entails saving 25 times an investor's planned annual expenses for retirement. Originating from the 4% rule, the 25x rule simplifies retirement planning by focusing on portfolio size.

Is 30% of your income too much to save? ›

And if you do hold big hairy audacious financial goals or want to get to financial independence, that savings rate needs to be at least 20% of your gross income... but more realistically? You should aim for 30-40%.

How much will I have if I save $50 a month for a year? ›

If you set aside $50 a month for one year, you'll have $600 saved. That's better than $0. As you continue to contribute more money, your account balance will grow. By keeping your extra cash in a high-yield savings account, you can earn interest while your money sits in the bank.

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What is a reasonable percentage of income to save? ›

How much should you save each month? For many people, the 50/30/20 rule is a great way to split up monthly income. This budgeting rule states that you should allocate 50 percent of your monthly income for essentials (such as housing, groceries and gas), 30 percent for wants and 20 percent for savings.