What percentage of my paycheck should I put into a savings account?

I’m a student and I work part-time. So that means, I do not get paid a lot of money. I only want to put a small percentage into my savings account, but not too small.

The amount you put into your savings account depends on whether or not you have any debt. If yes, you should have at least $500 in your savings in case of emergencies (raise it to $1000 once you get a full-time job).. If you are debt free, then you should have about 3-6 months of expenses in there for emergencies. To get to the $500, you should figure out how much you need to live on each month (paying bills, having cash for purchases, etc.) and put the rest into savings. After you’ve done that, start attacking those debts until they are all paid off. Once you are debt free, then build up the savings to the 3-6 month number. Make sure you are not going back into debt while you are doing this. If you do, use the money in the savings to pay off the debt (but don’t go below $500), and start over. Once you’ve reached the 3-6 month number, stop feeding the savings account and begin to take 15% of your check and put the money into good mutual funds. They’ll earn a lot more interest than a simple savings account, and that will begin your retirement fund. The earlier in life you start a retirement fund, the more money you’ll have in there once you reach retirement age. Remember, your savings account is for emergencies. It’s not for investments!