One of the most difficult questions you will have to answer in life is, “how much should I save?” It’s a common question and finding the right answer is key to paving your path to financial security. Whether you’re setting aside funds for emergencies, planning a trip or eyeing retirement, a strong savings plan is essential to meeting any goal. Let’s take a deep dive into tackling your goals by discussing some essential savings strategies and how you can create realistic goals.

Let’s break it down. The hardest part of savings can be following through, but creating your goals is the first step that needs to be taken before starting the journey. Whether you have short-term or long-term goals, establishing an amount to save for will help you create an efficient strategy. So, the first question is, “what are you saving for?” Do you plan on moving into a new home, purchasing your dream car or paying tuition for next semester? No matter what you’re saving for, one common rule of thumb is to always have 3 to 6 months of living expenses in an emergency fund.

Are you ready to start creating a savings strategy? Let’s get a pen and paper to jot some ideas down.

• Start listing all sources of income that you earn and then list all the expenses that you have. The 50/30/20 rule is a handy guide: 50% for needs, 30% for wants and 20% for savings and debt.
• Create a smart savings strategy, such as enrolling in round up programs or automatically transferring money from your paycheck into your savings account. High-yield savings accounts, such as Impact Savings, can help boost your balance by providing a higher rate of return than a standard savings account.
• Keep track of your progress. Whether you review your statement each week, use an excel file or a budgeting app, like Personal Finance, monitor your journey and celebrate the milestones along the way.

Life happens, and unexpected expenses can derail your journey. Don’t let setbacks discourage you; that’s what an emergency fund is for. Always remember, asking yourself “how much should I save?” is just the beginning of an exciting financial journey.