How much of your income should you save?
What two published plans say, each named as theirs, in dollars for your take-home pay, and what to save for first.
Checked October 26, 2026
The two plans, side by side
| Plan | Short-term savings | Long-term investing | Measured on |
|---|---|---|---|
| Fidelity | 10% | 15% for retirement, match included | Take-home; retirement on pay before tax |
| Ramit Sethi | 5% to 10% | About 10% | Take-home |
In dollars, by take-home pay
| Monthly take-home | Fidelity, 10% short term | Sethi, 15% to 20% in all |
|---|---|---|
| $3,000 | $300 | $450 to $600 |
| $4,000 | $400 | $600 to $800 |
| $5,000 | $500 | $750 to $1,000 |
| $6,000 | $600 | $900 to $1,200 |
| $8,000 | $800 | $1,200 to $1,600 |
For one paycheck at a time, weekly, every two weeks or twice a month, use the paycheck savings calculator. Retirement on its own is on the retirement page.
What to save for first
- A starter cushion. Fidelity suggests $1,000 or one month of essential expenses, whichever is more.
- The full emergency fund. 3 to 6 months of essential expenses. More on the emergency fund guide.
- Goals with a date. A trip, a car, a move: a sinking fund for each.
If you can't save that much yet
Start with what fits and raise it each time your pay goes up. Saving is easier to keep when it leaves on payday, before it can be spent. If the month never has room, the gap is usually in the fixed costs: see rent and the car.
Questions people ask
How much of your income should you save?
Fidelity's guideline is 10% of take-home pay for short-term savings plus 15% of pay before tax for retirement, counting an employer's match. Ramit Sethi's plan puts 5% to 10% into savings and about 10% of take-home into investing, so 15% to 20% in all.
How much of my paycheck should I save?
On Fidelity's plan, 10% of each paycheck goes to short-term savings, on top of the retirement saving taken out before it lands. The paycheck calculator works it out per paycheck for both published plans.
How much should you save each month?
On $5,000 of monthly take-home, Fidelity's 10% is $500 for short-term savings. Ramit Sethi's 15% to 20% is $750 to $1,000 for savings and investing together.
What should savings go to first?
An emergency fund. Fidelity suggests starting with $1,000 or one month of essential expenses, whichever is more, and building to 3 to 6 months of them.
Is saving from salary or take-home pay?
Both plans mostly use take-home, what lands in your account. Fidelity's retirement 15% is the exception: it is of pay before tax, because 401(k) money usually leaves before the paycheck does.
How much should a couple save?
Each of you can use the same percentage of your own pay, which keeps it fair when you earn different amounts. Shared goals, like a house or a trip, can be filled from both, in proportion to income.
Sources
2 sources · read October 26, 2026
Every number on this page comes from fidelity.com and iwillteachyoutoberich.com. If a source has changed since, the source is right.
Wonderful gives general information. It isn't a financial or tax advisor.