North County Credit Union

Decide How Much to Save

by Michelle M. Haas-Dosher, CCUFC / April 11th, 2018


When it comes to saving, something is better than nothing, and more is better than less. That’s not much help—but this simple guideline might be:

This streamlined budget guide, or Balanced Money Formula, comes from the book All Your Worth: The Ultimate Lifetime Money Plan, by U.S. Senator Elizabeth Warren and Amelia Warren Tyagi. 

Warren and Tyagi categorize the terms this way:

This is a good starting point, although in practice it’s a better plan to pay yourself first. Automate your savings by setting up direct deposit of your paycheck and then automated transfers from checking to savings.

The authors say when your money is in balance, you always have enough to pay your bills, have some fun, and save for your goals. And once your money is in balance, you can stop worrying about it. Managing your money becomes automatic.

Live below your means and you will always feel rich.

If you’re starting from zero, be realistic and don’t expect to hit 20% savings with your next payday. But make progress toward that goal and be consistent. You are striving for a money plan that is sustainable:



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