Saving money is a fundamental aspect of personal finance that can significantly impact your financial security and future goals. However, determining the ideal amount to put away isn’t a one-size-fits-all equation.

The percentage of your income you can realistically save depends on various factors, including your financial goals, current expenses, and individual circumstances. Here are a few tips to help you find a savings amount that works for you.

Determine your savings percentage

One of the most common budgeting techniques is the 50/30/20 method, where 50 percent of your income goes toward your needs, 30 percent toward wants, and 20 percent toward savings and investments. However, this rule may not always be the best option for you. For instance, if you’re close to retirement age, you may need to save more than 20 percent each month to have enough for your golden years. If you have a lot of debts, you may want to decrease the amount you spend on wants, reallocating some of those funds toward paying your loans off sooner. In other words, while saving 20 percent might be a good rule of thumb, you need to assess your current situation and expenses to determine what percentage of spending versus saving will realistically work for you.

Understand your financial goals

Besides your circumstances, you should also adjust your savings rate according to your financial goals, tailoring your strategy to better meet your specific needs. For short-term objectives like going on vacation or purchasing a new gadget, you can allocate a certain portion of your income each month into a separate savings account until you hit your target number. However, saving for long-term goals, like retirement or a child’s education, usually requires a more substantial and consistent commitment over a longer period of time and a strategic approach toward what accounts your money goes into. On top of your personal goals, financial experts recommend building an emergency fund that’s typically three to six months’ worth of your living expenses. Because you want to have this safety net sooner rather than later, it could mean saving more each month until you reach this ideal sum.

Adjust your savings rate

Ultimately, the percentage of your income you save isn’t set in stone; life is dynamic and your financial situation may change over time, so it’s essential to revisit your savings strategy regularly and make adjustments as needed. For instance, as your income grows due to raises or promotions, consider increasing your savings rate proportionally to accelerate your progress toward your short- and long-term goals. On the other hand, in times of financial hardship, it may be necessary to temporarily reduce your savings to cover essential expenses.

When it comes to saving, the most important thing is to be consistent with your efforts. Even if you can only save 5 or 10 percent each month, it can make a significant difference over time. And as your income grows, you can gradually increase your savings rate, ensuring your financial security steadily improves.