The Investing for Beginners Podcast - Your Path to Financial Freedom

AAR27 - How do I decide how much to save?

Dec 9, 2025

Explore practical strategies for saving, spending, and investing with a clear percentage-based approach. Discover the power of the 50-30-20 rule and how to customize it to fit your needs. Learn the importance of calculating your true net income and how to prioritize savings like 401k matches and HSAs. Understand why credit cards should be used wisely and the benefits of high-yield savings accounts over traditional options. Plus, get tips for budgeting for big goals and adjusting your plan as life changes.

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INSIGHT

Percentages Beat Dollar Bragging

Percentages matter more than dollar amounts when planning savings and spending.
Comparing ratios gives a fairer view across incomes and avoids misleading flashy numbers.

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ADVICE

Set Target Percentages First

Start your budget by setting target percentages like the 50-30-20 rule as a baseline.
Adjust those percentages over time to match your goals and life changes.

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ADVICE

Budget From Net Income

Use your net (after-tax) income as the baseline for budgeting, not gross pay.
Pull your taxable income from last year's return or estimate using tax-bracket math for accuracy.

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Why use percentages instead of dollars

01:33 • 1min

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Episode purpose and follow-along budget sheet

02:58 • 1min

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Setting target percentages (50-30-20 and tweaks)

04:01 • 3min

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How to calculate true net income

06:42 • 4min

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Defining 'needs' and including debt payments

10:17 • 4min

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Must-have savings: 401(k) match and HSAs

13:58 • 3min

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Counting mortgage principal as savings

16:33 • 2min

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Saving for mid/long-term goals and 529s

18:34 • 47sec

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Reconciling pre-tax 401(k) with post-tax budget

19:21 • 2min

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Managing wants and discretionary spending

21:21 • 2min

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What to do with leftover funds

23:09 • 6min

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How much to fund an HSA monthly

29:18 • 2min

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Benefits of having a visible, flexible budget

31:06 • 2min

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Avoid regular savings accounts; choose growth

33:26 • 3min

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Credit cards as payment vehicles only

36:27 • 2min

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How to implement the budget and next steps

You can download Evan’s free monthly budgeting spreadsheet here:⁠https://einvestingforbeginners.com/budget/⁠

In this episode of At Any Rate, Evan Raidt breaks down the practical process of deciding how much to save, spend, and invest—using a clear, percentage-based system that works for any income.

Evan walks through the 50-30-20 rule (and how he tweaks it himself), explains why percentages matter more than dollar values, and shows how to use a real-world budget outline (grab the free sheet ⁠here⁠). You’ll learn where to start, how to handle must-have savings like 401k matches and HSAs, and how to prioritize Roth IRAs and high-yield savings accounts with any leftover funds.

Topics Covered:

Why percentages matter more than dollar amounts
The 50-30-20 rule (and Evan’s personal tweaks)
How to find your true net income for budgeting
The power of maxing your 401k match and using an ⁠HSA⁠
Using credit cards only as payment vehicles (not for emergencies)

Timestamps: 00:00 Intro and why this topic matters 02:00 The problem with flashy dollar amounts—percentages are what count 04:30 How to use the free ⁠budget sheet⁠ 06:00 Setting your target percentages (50-30-20 and beyond) 09:00 Calculating net income and why it matters 12:00 Breaking down “needs” and why debt payments go here 15:00 Must-have savings: 401k match, HSA, home equity 18:00 Planning for big goals (cars, houses, etc.) 20:00 Prioritizing Roth IRA and high-yield savings accounts 24:00 Tracking and adjusting your “wants” 27:00 What to do with leftover funds 29:00 Final tips: avoid regular savings accounts, use credit cards for rewards only, and keep things hands-off with index funds 31:00 Wrapping up and how to get started

Resources Mentioned:

Free budgeting spreadsheet: ⁠⁠https://einvestingforbeginners.com/budget/⁠⁠

⁠Roth IRA basics⁠:

⁠https://www.investopedia.com/terms/r/rothira.asp⁠

⁠High-yield savings accounts⁠: ⁠https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts⁠

⁠Vanguard VOO ETF info⁠:

⁠https://investor.vanguard.com/investment-products/etfs/profile/voo⁠

Have feedback or ideas for Evan? Comment below or email him at ⁠evan@einvestingforbeginners.com⁠—your suggestions help shape future episodes.

Remember, financial freedom is built one smart move at a time. Keep it simple, keep it steady, and at any rate, we’ll see you next time.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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