Saving money is the first step to financial freedom and unfortunately it’s something that many people struggle with. They struggle because they don’t have a plan for how to save and how much to save. The “how to” for saving comes from instilling the habit of paying yourself first.

Once you come to realize “how”, then the question becomes “how much”? When it comes to saving and paying yourself first, the typical rule of thumb is to save at least 10% of your income. 10% is an ideal place to start and over time, if possible, gradually increase that amount. With any increases in income along the way, you may be able to eventually work your way up to even save 20% or more.

“Save one-third, live on one-third, and give away one-third.” – Angelina Jolie

If 10% seems like too big of a stretch, then start with any percentage you’re comfortable with. Saving any amount, even the smallest amount is always better than nothing, but make that effort to increase that percentage as much and as often as possible to the 10% minimum.

A commonly used strategy to help gradually increase the percentage of how much of your income you save is to apply a portion (I recommend at least half) of any pay raises you receive. Just remember, the more aggressive you get with that percentage, the quicker you’ll reach your financial goals.

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