This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.

The importance of saving money is clear. It can help you cope with life’s unplanned expenses and set you up for a comfortable future. However, figuring out how much to save can be tricky.

How much of your paycheck should you save each month? Many experts aim for somewhere between 10% and 20%, but that’s not a golden rule. So let’s dig into that.

One popular guideline, the 50/30/20 budget, proposes spending 50% of your monthly take-home pay on necessities, 30% on wants and 20% on savings and debt repayment.

For example, if you make $4,000 after taxes each month, that works out to $800 for savings and paying off debt.

“Savings” is a broad term. So what exactly does it cover? According to the 50/30/20 rule, the savings category consists of an emergency fund, retirement and other long-term savings goals, such as paying for a home or your child’s college education.

Remember, the entire 20% isn’t devoted to savings. Reserve some of that for paying off credit cards and other high-interest debt, if you have it.

The 20% rule is a good general guide, but it isn’t the right fit for everyone. Some people can save above that rate, while others merely struggle to make ends meet.

“Some people pay their rent and they have nothing left. So how are they possibly going to save 20%?” says Tara Unverzagt, a certified financial therapist and certified financial planner in Torrance, California. “You need to look at your situation to see what is reasonable and what’s not reasonable.”

You can use a budget planner to compare your estimated monthly spending and saving totals with the recommended 50/30/20 budget figures. Don’t feel ashamed if you’re saving below the suggested rate or nothing at all. There may be ways to save or make money that can help you increase your savings contributions. For example, canceling a rarely used gym membership could free up around $40 or $50 every month.

Your income, expenses and goals should ultimately determine how much you’re able to save each month. “If the goal is to retire at 40, you need to save a heck of a lot more than people who are shooting for 65 because you have 25 fewer years for that money to compound,” says Tess Zigo, a CFP in Palm Harbor, Florida.

If saving roughly 20% of your monthly paycheck isn’t within reach, you may feel discouraged about saving altogether. Try not to get hung up on a specific number. As Unverzagt puts it, “any savings is good savings.”

Unverzagt says, start with a manageable amount, such as $10 per week or paycheck. Setting aside $10 each week adds up to $520 a year. That’s a solid amount for a starter emergency fund.

Ideally, you’ll save toward multiple financial goals at once. But if you can’t, it’s OK to prioritize. For example, focus on building a basic emergency fund first, then on saving enough to get the employer match on your 401(k)  — if you have one. After that, you can move on to increase retirement contributions or establish a full emergency fund of three to six months’ worth of living expenses.

Having a lot of money saved seems like a good problem to have. But it can have disadvantages. For example, if saving gives you anxiety or causes you to take on debt, you may want to dial back.

“There could be a lot of downsides, right? You’re working more than you need to, so you’re giving up time with your family. You’re not spending that time and that money on things that are important to you today,” Zigo says. “You can’t take the money to the grave, so what is the end goal here?”

Keep your values in perspective. Saving for the future shouldn’t come at the expense of your present-day needs and those of your household.

“Maxing out your 401(k) can be appropriate for someone who’s making $120,000 and single with no family. It may not be appropriate for somebody who is not in that situation,” Unverzagt says.

In any case, it’s important not to overshoot your savings. If you tie up too much money in a retirement account and end up needing to withdraw early, you could face taxes and penalties. A retirement calculator will help you work out a realistic number.

Storing too much in an easily accessible savings account, say for an emergency fund, can also backfire. For example, you can miss out on higher returns compared with investment accounts or the tax savings you’d get by directing some of that money to a 401(k) or IRA.

Whether you want to start saving money or get better at it, here’s some advice:

Pay yourself first. Each time you receive a paycheck, immediately sock some of it away for savings before you can spend it on other expenses. This budgeting approach is known as pay yourself first.

Automate. Control the amount and how often you save by automatically setting aside a portion of each paycheck. “The 401(k) is a great place to start because you don’t have to do much,” Zigo says. “The company gives you the website. You just go in and click a few buttons and pick a percent to contribute.”

You can also set up automatic transfers to your savings account or IRA through your financial institution or a savings app.

Talk to someone. A reliable friend, relative or financial advisor can help you figure out what’s holding you back and identify ways to move forward.

“People are suffering alone. Because of shame and embarrassment, and the feeling of being vulnerable, they’re not having conversations that they should be having,” Unverzagt says.

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.

Rewards credit cards typically come in two basic flavors: cash back and travel — useful if you want to save money without couponing or spend less on that annual visit to the in-laws.

But a number of new credit cards are reimagining the role a rewards program could play in your life. These cards can help incentivize certain behaviors, or allow you to fund a hobby or investment account. They may offer rewards on spending that isn’t covered in the typical grocery-restaurant-travel triad, like rent payments or home fitness equipment. And while they might not be as rewarding as a premium card with a massive sign-up bonus, they offer a greater degree of personalization.

The startups that create these cards are competing against major credit card issuers, which is no easy feat. While they lack the brand recognition and deep pockets of big banks, they have one thing in their favor: speed. Some financial startups rely on the services of other tech companies that provide the infrastructure (including selecting the bank partner and payment network, and establishing underwriting guidelines) for launching a new credit card. That makes it easier to turn an idea into reality.

“You’ll see that more of these interest-based cards come out because issuing a card is no longer as big of a lift,” says Ben Reid of M1 Finance, a personal finance startup with its own new credit card that targets investors.

How well this flood of new cards performs is another story. They all face a crowded credit card marketplace with lots of competition.

“The challenge that, frankly, we’ve experienced is it’s really hard to break through, and it depends on your demographic,” says Matthew Goldman, chief product officer at Apto Payments, a payments infrastructure company. Goldman’s startup created the Grand Reserve World Mastercard, a card designed for wine lovers. He found that people who are willing to spend hundreds on rare wines tend to have high incomes and credit scores, which would make them eligible for a wide array of premium cards.

No matter what, however, these kinds of cards will shake things up. “The thing that’s exciting about startups is most products won’t succeed,” Goldman says. “But they’re creating new ways of thinking about things.”

Here are some examples of credit cards with unconventional rewards programs:

Allocating rewards toward an investment account a few times per year can be a way to dollar-cost average without having to make room in your budget for your brokerage account. The Owner’s Rewards Card by M1, which launched in July 2021, earns extra cash back when you use the card to make purchases at select companies that you own shares of. Those shares must be held in an eligible M1 invest account, but your cash back can be automatically reinvested into your portfolio.

Credit cards with crypto rewards are a hot trend, allowing you to obtain cryptocurrencies in small amounts through your normal spending. These cards can be appealing if you don’t have other uses in mind for your points and have been curious to learn what the fuss is all about.

The Paceline Credit Card earns extra cash back when you meet weekly fitness goals, and you can earn statement credits toward a new Apple Watch. With the Grand Reserve World Mastercard, currently closed to new applicants, you can earn more rewards on wine purchases and redeem them for wine, wine accessories and winery experiences. The forthcoming Ugami Card advertises that it will let you redeem rewards for gaming merchandise, hardware and software, exclusive game sessions and more.

We all eat and go places, so earning extra points on groceries, dining out and gas is helpful. However, a sizable portion of your monthly budget goes toward housing, especially if you live in a high-cost area, and previously, that expense would usually go unrewarded. But the Bilt Rewards Card earns points on rent payments, among other things, and you can redeem those points toward rent or even a future home purchase.

If you want to use your credit card rewards to fund a highly specific purpose, you may enjoy using a card that feels like it’s custom-made for you. But, of course, you could also find value in a normal ol’ cash-back card with a generous sign-up bonus because you can allocate those cash-back rewards toward whatever you want.

It’s also worth noting that more established credit card issuers are beginning to offer cards with rewards programs that feel more customized. Some of these cards allow you to earn a higher rewards rate on your top spending category each month, and your earnings automatically shift with your expenses so you don’t have to track spending or activate anything.

They may not offer crypto as a rewards option, or credits toward fancy gadgets as a bonus, but you still get a bit of a personalized touch.