Question 1

How long will it take to reach my savings goal?

Accepted Answer

The time depends on three factors: how much you need (minus current savings), your monthly contribution, and your expected return rate. This calculator shows you the exact timeline and can suggest higher contributions to reach your goal faster.

Question 2

What return rate should I use for my savings?

Accepted Answer

For a high-yield savings account, use 3-5%. For money market accounts, similar rates apply. For investment accounts with stock exposure, 6-8% is reasonable for long-term goals. Use lower rates for goals under 5 years to be conservative.

Question 3

Should I prioritize paying off debt or saving?

Accepted Answer

Generally, pay off high-interest debt (credit cards) first since interest rates exceed savings returns. But keep a small emergency fund ($1,000-$2,000) before attacking debt. For low-interest debt, you might save and pay debt simultaneously.

Question 4

How much should I save for an emergency fund?

Accepted Answer

Financial experts recommend 3-6 months of essential expenses. If your job is unstable or you're self-employed, aim for 6-12 months. Use this calculator to see how long it takes to build your target emergency fund.

Question 5

What are the milestone percentages shown?

Accepted Answer

The milestones show when you'll reach 25%, 50%, 75%, and 100% of your goal. These help you track progress and stay motivated. Celebrating milestones can help you stick to your savings plan long-term.