The ideal amount you should save each month depends entirely on your personal situation. Are you single? Do you have children? Do you have to pay off a mortgage? All of these factors determine how much you can set aside each month. Although everyone can't put aside the same amount each month, it's advisable to have a healthy amount in reserve in any case. So you always have enough for unforeseen expenses.
The advantage of saving monthly
Saving every month means that you build up your savings quicker. With an automatic savings facility, a (fixed or remaining) amount is transferred to your savings account on an agreed date. Is it worth it? Definitely, because you commit to saving.
Saving for a goal
You probably have a wish-list in mind: a smartphone, a holiday or even your own home. If you're saving for something special, here's a simple formula for working out how much you should put aside each month. You simply divide the amount you need by the number of months until you want to have that amount.
How much should you save for later?
When you start earning, saving for your pension is the logical next step. The annual limit for tax relief for regulated pension savings is 940 euros this year. Some people might find it easy to save that amount, but some do not. Many young families find that there's not much left over once they've paid their mortgage each month. You can save for your pension from as little as 10 euros a month with KBC. But even if you save a small amount, you still enjoy tax benefits. Remember that the more you save each month, the bigger the tax reduction.
Always keep some savings in reserve
Maybe you're already thinking of building up a nest egg? You need something in reserve to cover sudden unforeseen expenses. So you don't get into financial difficulties if your car suddenly breaks down or you want to make a few alterations to your house.
How much should you save for your children?
Many parents give their child a financial
boost with a savings account. They pay a sum into it each month
to give their children a financial boost later in life. It's entirely
up to you how much you save each month. But, of course, the amount
should not be more than you can afford each month.
Consider your financial situation first
- Compare your income and expenses
- How much of what's left will you set aside as a reserve?
- Are you saving for something special?
- Are you saving for your pension?
- Can you save a bit more on certain expenses?
See how much is left on average and then decide what would be a realistic amount for you to save. Whether that's 20 euros, 40 euros or even more, if you put that amount into a savings account each month, you'll soon have a nice nest egg.
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