VisualCalc’s Saving for a Goal Calculator helps consumers determine how much they need to save to afford a future goal.
A lot has been written about the current state of the average American’s saving accounts. In short, most people are not adequately building up a savings “nest egg” for retirement, emergencies, or future major purchases. In fact, over half of Americans have savings balances below $1,000, and 34% of have no savings at all!
All financial experts agree on the importance of allocating a reasonable portion of your income to a savings account. While the specific percentage recommendations vary, they typical fall between 10% and 20% of your income stream. One recommendation gaining popularity in the press is the 50/20/30 rule, where 50% of your income is spent on necessities, 20% is allocated to savings, and 30% is used for discretionary purchases.
In terms of savings, most Americans are focused on their retirement planning. However, there are a number of other things that the typical consumer should factor into their savings strategy. These could include an emergency next year, extinguishing debt, future life events (e.g., weddings), or future large purchases, such as an automobile or a down payment on a new home purchase.
This Savings for a Goal Calculator can help consumers plan their savings strategy for these future expenditures. The calculator will help them determine how much they need to save to reach a future savings goal. Based on their selections, the calculator will show them how much they should save on a monthly basis, the minimum rate of return that is required, or the number of years it will take for them to reach their goal.