Saving and investing are two of the most important steps toward building long-term financial security. Yet, with so many daily expenses competing for your paycheck, it can be difficult to determine just how much to set aside each month. Financial experts often recommend a specific percentage of your income to dedicate to savings or investments, helping you create a balance between enjoying life now and preparing for the future.

Setting aside the right amount allows you to grow your emergency fund, invest for retirement, and reach major financial goals like buying a home or funding education. The key is to start saving early and stay consistent. Over time, even small contributions can grow significantly through the power of compound interest.

So, what’s the golden rule when it comes to saving or investing a portion of your income? Let’s see if you know the commonly recommended percentage!