Savings
How much you should save each month (and how to start from zero)
"Save 20% of your paycheck" is the most repeated advice out there, but it isn't always realistic. Here's a more practical way to decide how much to save each month, based on your actual situation.
Why 20% isn't a universal rule
The 50/30/20 rule (50% needs, 30% wants, 20% savings) is a good starting point, but it assumes your basic needs fit into 50% of your income — which isn't always true, especially if housing costs more than that share. Before you fix a percentage, first look at how much it actually costs you to live each month.
The order that actually matters
Before thinking about saving for long-term goals, cover these in order: a 3-6 month emergency fund for essential expenses, any high-interest debt (credit cards, personal loans), and only then, savings for specific goals or investing. Saving for a trip while paying 20% interest on a credit card doesn't pay off.
How to set your number
Work out your monthly net income and your essential fixed expenses (housing, utilities, groceries, transport). The difference is what you have available for saving, debt, and variable spending. A reasonable starting point: aim to save at least 10% of your income if you're saving nothing today, and raise the percentage as you free up more.
Automate saving so it doesn't depend on willpower
The most effective method isn't "saving whatever's left at the end of the month" — there's almost never anything left. It works better the other way around: as soon as you get paid, automatically transfer the amount you want to save to another account, and live off the rest as if it were your real paycheck.
What to do if you can't save anything right now
If your fixed expenses already exceed your income, saving a percentage isn't realistic yet — the first step is reviewing those fixed expenses (housing, subscriptions, insurance) before thinking about savings. Starting with even €20-30 a month, small as it seems, builds the habit; you can raise the amount later.
Frequently asked questions
How much should I have saved by my age?
There's no reliable, universal figure — it depends too much on your income, your city, and your personal situation. It's more useful to check whether you have a 3-6 month emergency fund covered than to compare yourself to an average that doesn't represent you.
Is it better to save in an account or invest directly?
Your emergency fund should sit somewhere immediately accessible, like a savings account. Saving for goals more than 5 years out (retirement, for example) usually benefits more from investing, which can lose value short-term but outpaces inflation over the long run.
Does paying down a mortgage early count as saving?
It's a form of saving, but a less liquid one: that money isn't available if you have an unexpected expense. Prioritize an accessible emergency fund first, and consider paying down a mortgage only with savings left over after that.
What if I can't save anything one month?
That's fine: the goal is a sustainable average over time, not a fixed amount every single month without exception. If you have an unexpected expense one month, pick it back up the next.
Put it into practice
Enter how much you want to save (or when you want to reach your goal) and work out the plan that fits you: