Simplify your budget and put your savings on autopilot.

If you want to reduce the complexity of saving enough money while removing the guesswork of budgeting, the 80/20 budget could be for you.

The 80/20 budget focuses on saving 20% of your income and leaving 80% for everything else. Saving a portion of your income before spending is a way to pay yourself first. Think of paying yourself first as another bill, but instead of paying the electric or phone companies, you’re prioritizing your financial goals alongside your obligations. When you automate this process, you keep these savings out of sight and out of mind while they get to work in your retirement account ¹ and other types of savings accounts that could grow your money even more.

There are also other budgeting styles to consider. For example, if you want to narrow down how much of your spending goes to essentials vs. luxuries, the 50/30/20 budget could help. This strategy allocates 50% of your income to needs, 30% to wants and 20% to savings. Voya’s budget calculator can create a 50/30/20 budget based on your income. Regardless of whether the 80/20 or 50/30/20 budget is more for you, both focus on 20% being the ideal amount of income to save.

To calculate 20% of your income, enter your after-tax income in Voya’s budget calculator. This is the number you’re looking for when paying yourself first. If saving that amount monthly is unrealistic, consider saving as much as possible and making 20% a goal. The calculator also lets you personalize your budget using specific categories with a downloadable PDF or Excel sheet.

¹Knowing your retirement plan’s eligibility for voluntary and employer contributions can make a huge difference. You might be able to use your money combined with your employer's contribution to grow your retirement savings.

If you enrolled in the Voluntary Pre-Tax Contributions account while it was available (before January 1, 2018), you may contribute up to 10% of your gross wages pre-tax.

If you didn’t enroll in the Voluntary Pre-Tax Contributions account, you may contribute up to an additional 10% of your gross wages post-tax.

If employer contributions are offered and you’re vested according to your plan, you can keep your employer’s funds in addition to your mandatory and voluntary contributions.

If you want to make voluntary contributions to your defined contribution (DC) or have questions about your eligibility for employer contributions, contact your employer’s payroll staff.