Alyssa asks, “I know the recommended amount to save is roughly 10-12% of your income. I think. Now, I save much more than the recommended percent (I know that’s good), but sometimes I feel pressure that I barely scrape by at the end of the month. It’s one of those never-ending guilt circles, you know, ‘I’m not saving enough, but you’re not giving yourself enough to live.’ What is your thoughts on this?”
Dave Ramsey suggests saving 5-10%. We save 12.1% right now (see our entire budget breakdown). Saving up 3-6 months of expenses is our focus now that we are debt-free (minus our house). Once we have our 3-6 months saved, we will shift our focus slightly and save for retirement and our kid’s education funds (and of course anything else that comes up like car fixes or replacement, etc.). In general, we work diligently to reach a specific financial goal (following Dave’s seven baby steps) and then move on to the next.