How much do you need to save or invest?
Know your goals
Deciding on how much to save or invest will depend on your needs and goals. For example, you will need to put far more money aside for your retirement and for longer than you would to buy a new car, which might only take a few years.
Use our goals table to show you different savings goals you might have and how long it might take to achieve them.
How much can you afford?
Before you start to save, you need to decide how much you can afford to put aside and for how long. Look at your earnings, what you spend each month and what you owe on any loans.
Use our budget planner to help you see how much is left over to save or invest. You can then set about drawing up your savings plan. To do this, you need to:
Mixing savings and investments
Most people have a mix of short, medium and long-term goals when it comes to saving. So it makes sense to spread your cash and put some money in savings accounts, where you can access it immediately to meet short-term needs, and some in longer-term investments, where it can potentially earn more. If you have outstanding loans you may want to clear some to save you money.
Regular savings (and if you can, some investing) will help you:
- manage your money;
- cope with unexpected expenses and emergencies;
- afford things you need in the future;
- borrow less;
- ease financial stress.