News & Resources

How Much Should I be Saving?

Nov. 11, 2011
1 mins
A woman sits in front of her computer with her credit card in one hand and a coffee on the table

No matter how much you’re setting aside, I guarantee you still don’t think it’s enough. And it probably isn’t – at least, not for your liking. Truth is if you thought you were on the right track, you wouldn’t be here. There is no set amount you should be putting away, but here’s a cool formula (based on your income after taxes) to get you started.

  • Spend no more than 50% of your income on NEEDS
  • Put 20% aside as SAVINGS
  • Spend the remaining 30% on WANTS

Needs include housing, food, utilities, insurance and transportation costs. Wants include things like cable TV, entertainment costs, unnecessary clothing and toys, such as iPods and sporting equipment.

Now, you’re probably sitting there looking at your current budget and worrying that it doesn’t even closely resemble the one outlined here. Don’t worry about it. This is just a loose guideline to help you reshape and better balance your budget.  There’s no better time to start than today!


The RATESDOTCA editorial team are experienced writers focused on sharing stories and bringing you the latest news in insurance and personal finance. Our goal is to provide Canadians with the information and resources they need to make better insurance and financial decisions.

Latest life insurance articles

How do I know if I need life insurance? A primer for Canadians
Life insurance isn’t a one-size-fits all solution. But if you have dependents, it can be an important financial safety net for those you love.
Learn More
5 mins read
Why life insurance should be part of estate planning for new parents
Life insurance is one of the best ways new parents can protect their family and help loved ones in the event of your unexpected death.
Learn More
5 mins read
10 Myths About Life Insurance Busted – Some May Surprise You
You may be young with no kids and no mortgage. Life insurance is for someone older, who has dependents right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
Learn More
6 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.