Saving money is very important for our future. If we don’t have enough savings, we might find ourselves starving or lacking in resources in the future. But that doesn’t mean we just have to let every money that we earn today go to our savings. At the same time as we are saving for our future, we also have to ensure that we are healthy and content today so that we could face tomorrow easily. We have to balance our earnings for our savings with our current expenses.

That is why it is very important to know how much you are saving. Known how much you are saving depends on what you are saving for. You can literally start saving right now without any purpose but only “for the future” but without any purpose of saving will only destroy your drive and you might never think of saving again.

I’ll just rundown three most important activities and stages in your life that you should seriously consider saving for and tips on determining how much you should save each month:

Retirement – if you’re still in your early 20s, start saving for you retirement right now. If you’re in you’re early 30s do not think twice to start saving on your retirement fund right now. We all want to just kick back and relax when we reach the age of retirement and that will not be possible if we don’t save for retirement now. To determine how much you should save each month consider the following factors:

Years before your age of retirement – if you’re 30 now, that means you have 30 years to save on your retirement.

Annual spending during retirement – calculate everything that you have to spend every month. DO NOT LEAVE OUT ANYTHING.

Your projected lifespan after you’re retired – the number of years you will be having before you finally retire in this world.

When you have those numbers, you can determine the total amount of money to be spent for the whole span of your life after retirement. You can reach that number by saving starting right now through different saving schemes and ideas.

College – When you have kids, college is one of the best gifts you can give them. If you’re not one of the rich parents in your neighborhood or your son or daughter is not one of the best athletes in the state, you should seriously consider saving money for college.

The best time to start saving for your kid’s college is right after they are born. That way, you have at least 18 years worth of savings to support your kids. Since you have a shorter amount of time to save your money, the best practice is to deposit the money to a high interest yielding investment. The safest so far is to place the money into a savings account. You could also ask your financial adviser for additional options for a high yielding investment.

Vacation – The best vacation may not always be the most expensive but it helps if you have enough money to spend in your vacation.

Personally, I start saving as soon as my vacation ends. That way, I can look forward to another awesome vacation because I have saved enough money. But if you don’t have enough time – here is some quick money saving ideas for a vacation: sacrifice for future fun – get the excitement for vacation fever for everyone by encouraging them to sacrifice a little bit. That way, not only they are looking forward for a vacation and preparing really well for it.