Important Additional Information

Savings and spending check-up

Savings and spending check-up


50/15/5. It's a simple rule of thumb: 50% or less of your income should go to essential expenses, 15% to retirement savings, and 5% to short-term savings.

  • 50% or less of your income should go to essential expenses,
  • 15% to retirement savings, and
  • 5% to short-term savings.

As long as you stay within those guidelines, the remainder is yours to save or spend as you see fit.

See how your actual savings and spending compares to our guidelines.

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About you

  • Yearly household income (before taxes and other deductions)
    $
    +
  • Marital status
    Single
    Married
Next

Monthly essential expenses

  • Housing Mortgage, rent, property tax, utilities, homeowners/ renters insurance, condo/home association fees.
    $/month
  • Groceries Do not include takeout or restaurant meals.
    $/month
  • Healthcare Out of pocket expenses for prescriptions and co-payments.
    $/month
  • Transportation Car loan/lease, gas, parking, tolls, maintenance, commuter fares.
    $/month
  • Child care Day care, tuition, and fees.
    $/month
  • Debt and other
    monthly
    obligations Credit card minimum payments, student loan payments, child support, alimony, life insurance.
    $/month
Total  $0 /month
Next

Retirement saving

  • Pre-tax retirement
    contribution Include both you and your employer's yearly contributions.
Next

Short-term saving

  • Emergency
    savings Do you have 3-6 months of living expenses saved to protect you in case of emergency? For example, job loss, becoming ill or disabled.
  • Other
    savings How much of your monthly income do you set aside for random, unplanned expenses?
    $/month
Show results

Your Results

  • Expenses
  • Retirement
  • Savings
Your expenses 0%$0/mo
Goal50%$0/mo

Monthly essential
expenses

Based on estimated after-tax income of $0/mo

You may want to try to reduce your essential expenses. Here are some ideas.

Housing

Get a quote from another company for homeowner’s insurance. Consider a free audit to identify opportunities to reduce energy costs. Use electricrate.com to compare electricity costs. Review your cable TV, Internet, and cell phone contracts.

Groceries

Shop the weekly sales. Try to plan a menu for the week rather than going to the store a few times a week.

Healthcare

For regular prescriptions, 90-day mail order supplies can reduce the costs. Use physicans that are in network. Contribute to a health care flexible-spending account to get tax benefits.

Transportation

Consider higher deductibles on your auto insurance. Participate in a commuter benefits if your company offers one.

Child care

Use a dependent-care flexible-spending account to reduce your taxable income if your company offers one.

Debt and other monthly obligations

Ask for a lower rate on high-rate credit cards. Consider consolidating student loans at a lower rate.

Good job, you're on track.

Next: retirement savings
Your retirement saving 0%$0/mo
Goal15%$0/mo

Retirement savings

Based on pre-tax income of $0/mo

You may want to try to save more. We know it’s not easy, but every bit counts. Here is an idea.

Think of it this way. Do you really want to worry about money when you’re retired? The more you save now, the more you will have to enjoy later. At the least, make sure you contribute enough to get your employer match. When you get a raise have all or part of it go into your workplace savings.

If you don't have a workplace savings plan, contribute to an IRA, Roth or traditional. Set up automatic contributions every month to make it easy.

Good job, you're on track.

Next: short-term savings
Your savings 0%$0/mo
Goal5%$0/mo

Short-term savings

Based on estimated after-tax income of $0/mo

Nice work. You’ve established an emergency fund which is such a critical step to protect your long-term savings.

Finding extra money to set aside is not easy. Yet, having an emergency fund is a critical first step in protecting you from debt in case of an emergency. We suggest having 3-6 months of expenses set aside.

While emergency funding is effective for more significant events, like job loss, we also suggest saving a percentage of your pay to cover smaller unplanned expenses. Here is an idea.

It’s good practice to have some money set aside for large, random expenses. That way, you won’t be tempted to use your credit card or take a loan from your workplace savings. We suggest setting aside 5% of your monthly income for these types of expenses. One trick: Think of short-term savings as a regular bill each month and have it automatically moved from your bank account to a separate savings account.

Good job, you're on track.


Nice work. You’ve established an emergency fund which is such a critical step to protect your long-term savings.

You may also want to consider setting aside savings to cover 3-6 months of expenses. Having an emergency fund will protect you in the case of job loss, becoming ill or disabled and will help protect your long-term savings and potential to incur debt.

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The savings and spending check-up is intended to provide users with an educational assessment of how their savings and spending habits compare to Fidelity’s suggested guidelines.  The check-up is based on Fidelity’s POV that users should allocate 50% of their take home pay to essential expenses, 15% of their pre-tax income towards retirement savings and 5% of take home pay to short term savings, which can be used to cover variable miscellaneous expenses which are difficult to budget.  Additionally, Fidelity suggests users have an emergency fund available to cover 3-6 months of essential expenses. The savings and spending check-up is intended to serve as an educational tool and should not be construed as tax or investment advice. Your circumstances are unique therefore if you believe that you need personalized tax advice, then you should consult a tax advisor.

Your estimated after-tax income is calculated by applying an estimated federal effective tax rate to the value entered for your yearly household income (an effective tax rate is the average rate at which earned income is taxed).   Your actual after-tax income may be higher or lower than this estimate.  The total income you enter should be the same as the income which is reported on page 1 of the IRS Federal Form 1040 and refers to all of your federal total (pretax) income that you may subsequently 1) apply adjustments to, 2) apply deductions to (standard or itemized), and 3) apply personal exemptions to in order to derive a value representing taxable income that a tax obligation will be based on.  To calculate your hypothetical effective tax rate, we estimate your total deductions by using Statistics of Income data provided by the Internal Revenue Service.  The Statistics of Income data is based on averages and may not represent your personal situation.  A rate of 5% is added to the calculated federal effective rate to estimate potential state and local taxes.  Your actual state and/or locality may use a different rate.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice.  Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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