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14% is the magic number. Depending on your level of experience, this 14% can go into a high-yield savings account, or, you can put it into a brokerage account and invest in some kind of diversified fund that matches the market (VOO or VTI is solid but do not pick both)
other bonus tips (I am not an advisor or finance professional, I just have a lot of passion for saving money as a former broke person that's trying to be financially independent)
- opt in to your FSA/HSA if you have a healthcare plan at work w a high deductible ($1,500 or more). Great to use in an emergency or if you have expensive medication that isn't covered by insurance
- pay off any high interest credit card debt (10%+) before any other debt if possible
- 401k matching from your employer if they have it! if you don't have access to one, start a Roth IRA. the max contribution limit in the 2025 tax year for people under 50 is $7000. That's about 583 per month which is an insane amount. Not everyone can set aside that much money (I def can't) but try to contribute what is comfy for you!
Nov 25, 2025