With transactions on the latest mobile banking innovation, M-Shwari, growing fast, having crossed the KES 1 billion mark by the end of 2012, with an excess of KES 976 million deposited in savings, only shows how Kenyans continue to recognize the importance of saving their money. A recent survey by MasterCard Worldwide showed that 76 percent of Kenyans understand the importance of saving their money. Baring this in mind, how much should you save each month?

We all earn a different amount each month and have different financial obligations, meaning we can’t all save a similar percentage of our income. There are though some guidelines you should follow when determining how much you should save each month.

You are probably familiar with the ten percent saving concept where at least ten percent of your income should be set aside as savings every month. This is actually a percentage most experts agree on and is a good starting point but with the current inflationary trends, it’s ideal to increase this amount over time so that you are able to save enough for future expenses.

Another common way to measure whether you are saving enough money is to check if you are saving until it hurts.

How can you do this?

Picture this, if you are easily able to meet any random expense such as an unplanned night out with friends or making a random purchase totally unplanned for means you are not saving enough.

 As Miriam Caldwell, from moneyfor20s.about.com, puts it, if you feel like things are just a little bit tight, yet you are still able to save, then you are saving a good enough. The secret is to maximize on saving and minimize on expenses. It is though important to give yourself breathing room in your budget, but not too much breathing space.

Your short, mid and long term goals can be a determining factor on if you are saving enough. Your short term goals could include saving for your kid’s education, or saving to but that special purchase. Your mid-term goals could be saving startup capital for a business and long term goals could be saving for retirement. It is possible to save for all these goals concurrently. There is nothing unreasonable about saving 20 or 30 percent of your money every month. The 60 percent budget plan is one such plan that actually lets you save 30 percent of your income every month.

If you are yet to start saving money every month, then it’s high time you do. Remember, saving is a very important aspect in your finances. This post will definitely help you determine how much you should save.

Spend less save more.