How much should i have in savings

How Much Should I Have In Savings?

The key to financial success is the ability to provide for your requirements whenever required. All of us have different needs and goals when it comes to saving. A one-size-fits-all formula will not work.

How much should I save?

The best answer to this question is to identify your various goals. Then draft a plan on how much you need to save to accomplish these. Your lifestyle also plays a vital role in determining how much you should save. Whatever your saving plan is, it is vital to address three basic buckets when you are deciding to save.

Saving is a long-term partner in your financial journey, and it will change as things move on. So, be considerate of every small and big financial situation and decision and make saving a habit. In this article, we will review the three buckets and see why it is important to contribute towards them.

Save for the rainy days

An emergency fund will help you to get through those difficult days when a little extra cash is genuinely helpful. How much money you should keep for unplanned causes is not fixed, but a healthy dose of three to six months of your salary should be maintained in your emergency savings fund. 

You should open a separate account to save for your emergency fund and avoid using it for anything other than an emergency. A zero-balance savings account is a good option; it is a digital savings account, and you can open such an account from the comfort of your home without the burden of paperwork. The other great feature of a zero balance account is that the account is free of any maintenance charges, so every rupee you save earns interest.

The zero balance savings account has multiple other benefits; you get a free virtual debit card, options to invest in various other investment instruments, and if needed, you can also apply for a credit card without a credit score.

Save for the big expenses

There will be planned expenses that will exceed your regular budget. Buying a home or planning a wedding event are examples of such expenses. You should consider and list your planned expenses and start a savings bucket to pay for these expenses. 

There is no set amount; try and save as much as you can to avoid the burden of debt. Once you determine what your planned expenses are, you can open a separate savings account for each one and start saving. Another option for saving for large expenses is to set up monthly SIPs. Break down the large amount into sizable chunks. The smaller the figure, the easier it will be to save.

Save for the ultimate milestone

The retirement fund is one bucket you can’t overlook. Take the help of a retirement savings calculator to find out how much you should save for your retirement. Saving for retirement is somewhat of a backward calculation; you have to check your needs and the lifestyle that you wish to pursue post-retirement and then save accordingly.

Typically, the projected savings rate is two to three times your current salary by the age of 40.


Take a proactive approach towards savings. Now that you know about the necessary savings buckets, deposit money into each of them on a monthly basis without fail. According to experts, you should try and save at least 20% of your salary after tax deduction and monthly expenses.

Popular Searches on Kotak811

Kotak811 Insights | 811 Edge Savings Account | Free Digital Savings Bank Account | Apply for Image Debit Card | ActivMoney Savings Account | Check Your CIBIL Score | Savings Account | Kotak811

This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.