What percentage of one's monthly gross income do budgeting guidelines suggest saving?

The budgeting guideline suggesting that individuals save 10% of their monthly gross income is widely accepted as a foundational principle in personal finance. This percentage serves as a benchmark that encourages people to prioritize savings, which can provide a cushion for emergencies, aid in achieving financial goals, and contribute to retirement funds.

Saving 10% is often considered a manageable starting point for most individuals, allowing for the balance between meeting daily expenses and building financial security. Over time, as individuals become more comfortable with their budgeting practices or if their financial situations improve, many financial experts recommend gradually increasing that savings rate.

Additionally, while some may argue for saving either lower or higher percentages, like 5% or 15%, the 10% rule is recognized for its simplicity and effectiveness, making it easier for individuals to adopt into their financial habits without feeling overwhelmed. Those who are able may even strive toward saving 15% or more as they progress in their financial journeys, but beginning with 10% is a strong foundation.