How Much Should You Be Saving? A Practical Look at Financial Goals for Purpose-Driven Business Owners

You’re paying yourself. You’re doing good work. Your business is profitable. But here’s the next question: Are you saving enough for the future you actually want?

This post walks through three common long-term savings goals: retirement, college for your kids, and buying a home (or a piece of land). These goals don’t need to be intimidating. But they do need to be specific. When you know your savings targets, you can build a business plan that supports your real life — the one you have today and the one you want in the future.

1. Retirement Savings Goal

Let’s say you want to retire in 30 years and expect to need about $75,000 per year to live comfortably. That number includes housing, food, insurance, and time to spend with family—or not working the land if you don’t want to.

Now let’s assume Social Security will cover about 20% of your retirement income. That’s roughly $15,000 per year. That means your investments need to cover the remaining $60,000 per year.

Using the 4% rule*:

$60,000 × 25 = $1.5 million retirement goal
You already have $50,000 saved (great start!)
You assume 7% annual return on investments after inflation
You have 30 years to save

You’d need to save roughly $12,000 per year, or about $1,000 per month, to reach that goal.

That’s your retirement savings target—adjusted for Social Security support and long-term growth expectations.

* The 4% rule assumes you want to live off the interest, without touching the principal, so you theoretically have passive income forever. This is good if you want to pass wealth to the next generation. An alternative approach with a lower savings rate is the die-with-zero or spend-down approach. “You can’t take it with you” so you support yourself, people or causes you believe in while you are still alive. The die-with-zero savings number is around half of the traditional approach, so $550/month or $6,600 annually. That creates a retirement portfolio around $1,000,000.

2. College Education Savings Goal

Say you have one child, age 3, and you want to help with college expenses starting in 15 years. Let’s estimate $30,000 per year in tuition, for a total of $120,000.

You have 15 years to save
Assume a 6% investment return (since it’s a shorter time horizon)

You’d need to save about $425 per month to fully cover that cost.

3. Home or Farmland Purchase Goal

You want to buy a home or additional farmland in 5 years, with a $400,000 price tag. You plan to put 10%* down: $40,000.

Estimate 2% interest— saving in money market mutual funds, CDs or short-term bonds, and cash
You have 5 years

You’d need to save $7,800 per year, or about $650 per month to hit that down payment goal.

* 10% down is a middle-of-the-road number. 20% down waives mortgage insurance (PMI). But if you’ve got long-term stability, a 5% down payment can get you into home ownership earlier.

So Can Your Business Cover That?

Let’s add those savings goals together:

$1,000/month for retirement (after accounting for Social Security)
$425/month for college tuition
$650/month for home or land purchase

That’s $2,075 per month, or about $25,000 per year* in savings targets.

* An alternative die-with-nothing and minimal down payment path requires a much lower savings rate, but comes with a different set of risks.

How Does That Number Sit With You?

That number might still feel big—and that’s okay. These goals aren’t meant to make you feel behind. They’re here to show you what your business might need to support over time.

Knowing the target gives you the power to ask important questions:

Do I need to grow the business?
Can I stretch these timelines or adjust expectations?
Should I prioritize one goal now and build toward the others?

Once the savings goals are visible, they become part of your overall financial strategy—not vague dreams, but clear direction for how your business can support the life you’re building.

What If That Feels Out of Reach?

Let’s be honest: For many farmers and land-based business owners, those numbers might feel impossible today—especially if you’re still paying down debt, struggling with access to land or capital, or running a business that hasn’t reached full profitability.

That doesn’t mean the goals aren’t valid. It just means you need a long-term plan. Saving steadily over time—even small amounts—builds momentum. You don’t need to solve everything this season. But knowing the goal helps you shape a business that can get there, step by step.

And the truth is, long-term investment growth can help. The numbers we’ve used—6% to 7% returns—are based on long-term, inflation-adjusted historical returns of diversified investment portfolios. That includes the ups and the downs. With time, the market has historically rewarded consistent investors who stick with it.

Don’t Overlook Tax Efficiency and Investment Strategy

Smart financial planning isn’t just about how much you save—it’s about how and where you save. Choosing the right investment accounts (like IRAs, 529s, or a solo 401(k)) can reduce your tax burden today and increase your long-term returns. This can make a huge difference over decades.

Tax-efficient investing, automated contributions, and choosing low-cost diversified portfolios aren’t just technical tips—they’re what help turn good savings habits into real financial independence.

Goals Aren’t Just About the Numbers

Setting savings goals helps you:

Push your business to be big enough to support what matters
Challenge assumptions about what’s realistic
Take control of your financial future

The point isn’t to create stress. It’s to get clarity.

Once you know your numbers, you can build a plan to get there—step by step, season by season.

Need Help Building a Plan That Works?

We help purpose-driven business owners turn real goals into workable financial plans. Whether you’re planning for retirement, college, a home, or all three, we’re here to help you crunch the numbers and build a business that truly supports your future.

You’ve built something meaningful. Let’s make sure your finances help it thrive—reach out today.

Let’s Look at 3 Common Savings Goals