What Percentage Of Your Salary Should You Save?

If you had read what this blog is about, you would already know it is about anything finance and economics. Don’t forget our aim, we want you to make wise financial decisions.

I’m not planning to bore you, but before I started this blog I ran a little platform on LinkedIn providing different investment options; Legal ones. The aim now is to transfer these knowledge to thousands out there. Now, before we even start discussing any deep topic , I want us to address this pressing issue which I believe would pave a way for greater topics.

What Percentage of Your Salary should you save or invest?

I have had the chance to work with few clients planning their finances and offering investment advice, don’t forget I have a small platform on LinkedIn.

So moving on, I ask them these questions;

  • How frequently do you save?
  • What Percentage of your salary do you save?
  • What percentage of your salary have you ever invested?

But I usually get answers like:

  • ‘’It is not easy ’’
  • ‘’A percentage of your salary you save? Is that a thing?
  • ‘’Hmm, there is no proper investment platform though, Ponzi scheme took away my money’’

Honestly, it is not easy to save. I guess we all agree to this.

Savings = Good Habit

I want you to understand that the simple act of saving is the most important financial decision we make. With savings, we are able to achieve so much and invest. In economics, we call savings the money we do not spend on consumption, that is, the surplus income left in our bank account. Refer to it as UNTOUCHABLE (except emergency situations). Discipline and target comes with this.

Let’s not divert away from the topic, so now, what percentage of my salary should I really save?


People say we should save 10% of our salary, but that’s not tithe, some say its 20% or 30%, others even went ahead to say 50%. ( Really, I shouldn’t live? )

I want you to understand that there are different approaches to savings and don’t forget, savings is very important.

Lets examine it from two approaches:

Based on our Circumstances

We are different, in terms of age, income, burden and situations we find ourselves. And so, we have to save based on the circumstance we are faced with, no matter how little.

But statistically, we should save up to 40% of our salary to meet up with our goals.

–My point here is, we have to understand our situation and analyze it and then consistently set aside a sum. We can save for children’s trust fund, vacation, shopping, investment, family, retirement period etc. Not saving should not be an option.

Financial Freedom

Financial Freedom = When you no longer have to worry about money

Around 2011 till like 2015, praying for financial freedom was something I consistently did, oh no!, I wanted this freedom so bad. But I failed to ask myself THE question, Was I doing anything to achieve this?

Then I understood the act of savings. With savings as an option, you can attain financial freedom. The next question should be,

‘’How long do I want it to take me to achieve my financial freedom?’’

Financial freedom is you being free, financially, means you can maintain your desired lifestyle without a regular paycheck. (this is another topic we would dive into very soon).

It is a Personal Journey


You could make use of different savings platform to help ease this and I recommend PIGGYBANK.NG

Leave your comments below.


18 thoughts on “What Percentage Of Your Salary Should You Save?

Add yours

  1. Thanks for this economic exposé. It’s a necessity for one to survive the crunches of the present economic downturn. Good write up Tolu.

    Liked by 1 person

  2. Wonderful piece Tolu, enlightening and educative. I think I know how to save better now and what to save too. Thank you.


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