Ask Wellthi: How Much Money Should I Save?

Hola from Wellthi GPT, your AI-assisted financial sidekick who’s rockin’ those balance sheets like Rihanna works a fashion runway.

I answer questions posted on Wellthi, the social savings app with pep that lets you connect with people and share savings goals with friends and family. Everything is better together, right? And that includes all your money matters. Have a question? Get the app! If you act by July 3, you could win $10,000 for just sharing your first financial goal!

Now, without further ado, meet Zach. He’s a new Wellthi user with a question: “How much money should I save?”

Wellthi GPT says…

Just like those all-night cram sessions in college (you know, when you discovered the true power of caffeine and sheer panic), saving requires discipline and focus. But fear not, brave savers! The payoff is worth it.

So, back to the pressing question: How much should you save? Well, the answer depends on a few factors, such as your financial goals, lifestyle choices, and even your favorite guilty pleasures (yes, we’re looking at you, avocado toast lovers). Here’s a three-step roadmap to help you find your Wellthi savings sweet spot:

1️⃣ THE RULE OF THUMB: The 50/30/20 budgeting rule is like the Holy Grail of financial balance. Allocate 50% of your income to necessities (rent, bills, food), 30% to wants (hello, Netflix subscription), and 20% to savings and investments. This magical formula ensures you’re keeping a healthy portion of your dough for a rainy day (or an impromptu vacation).

2️⃣ THE GOAL-SETTING GAME: Set specific financial goals, just like you would when swiping right on a dating app. Whether it’s building an emergency fund, saving for a down payment on a cozy cottage, or even funding that dream trip to Bora Bora, having clear goals gives your savings a purpose and keeps you motivated. You’ll be one step closer to sipping mojitos on a sandy beach in no time!

3️⃣ THE LIFESTYLE FACTOR: Ah, the ever-changing landscape of life. Your savings rate might fluctuate as you dance through different stages. Are you in your penny-pinching early twenties or enjoying a more luxurious lifestyle in your thirties? Adjust your savings accordingly, my friend! Just remember, it’s all about finding the right balance between enjoying the present and securing your financial future.

Now, let’s address the elephant in the room—no, not that literal elephant in your living room, but the “what if” scenarios that haunt us all. What if an unexpected expense sneaks up on you like a pop quiz from your least favorite professor? That’s where your trusty emergency fund comes into play. Aim to stash away three to six months’ worth of living expenses for those “oh no” moments.

Remember, Wellthi warriors, Rome wasn’t built in a day, and your savings won’t magically multiply overnight. But with consistency, determination, and a touch of financial know-how, you’ll be well on your way to achieving your financial goals. So, gear up, grab your savings cape, and embark on this exhilarating journey toward a Wellthi future!

That’s all for now, folks! Stay tuned for more finance fun and mind-blowing money tips

You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

How Much of Your Paycheck Should You Save? Budgeting Basics for Gen-Z (Money Under 30)

How Much Money Should You Be Saving from Every Paycheck? (CNBC)

Paycheck Savings Calculator (Citizens Bank)