Is saving $2,500 a month good?

Yes, saving $2500 a month is very good, since it is more than the roughly $250 per month the typical household saves based on the median income in the U.S. and the average savings rate. Saving $2500 a month can help you work toward your financial goals, save for retirement and build an emergency fund for unexpected expenses. More than one-third of Americans do not have enough saved to cover a $400 unexpected expense, according to the latest data from the Federal Reserve.

Reasons Why Saving $2500 a Month Is Good

Provides a safety net.

An emergency fund is money you set aside to cover unexpected expenses, such as an expensive vet bill or your living expenses if you lose your job. It’s best to have at least three to six months’ worth of your living expenses in your emergency fund, and saving $2500 a month can help you grow your emergency fund quickly.

Allows you to save for retirement.

WalletHub’s Retirement Savings Survey found that 46% of people are not confident they will have enough money to retire. However, when you save $2500 a month, you can contribute a portion of that amount toward retirement and grow your retirement savings over time.

Helps you accomplish other financial goals.

Whether it’s a vacation, a new car, a home renovation project you want to do, etc., saving $2500 a month can help you reach any financial goals you have much faster.

Is Saving $2500 a Month Good for You?

Even though saving $2500 a month is good for most people, that doesn’t necessarily mean it’s good for you. The right amount for you to save every month really depends on your financial goals and personal circumstances.

For example, your savings rate could be lower if you are spending a lot on expenses such as housing, groceries, and debt obligations. If you have a lot of debt, it’s good to prioritize paying down what you owe. On the other hand, if there is something you are saving up for within a certain timeframe, you should consider increasing your saving to reach your goal.

In addition, your income plays a big role in whether saving $2500 a month is good or just OK. If you are saving $2500 a month, you are probably making at least $12,500 per month. That’s good. But if you are making $5,000 a month and saving half your salary, for example, that is even better. Conversely, if you are making $25,000 a month and saving just 2500 a month, it’s a decent start, but you may be able to adjust your expenses to save even more.

To get a sense of how much you should be saving, check out WalletHub’s guide on how much to save every month.