Savings How much money should you save in a month?
Bad times and strokes of fate can hit anyone. It is all the more important that you then have a financial cushion. How much should you save per month? And how much should one have on the high side at a certain age?
There are many good reasons to save: You are prepared for bottlenecks and major repairs, you remain financially independent in the future or you simply sleep more soundly. Last but not least, those who save cleverly can increase their wealth. But in order to do this, saving must first be addressed. We clarify important questions around the topic.
Building up reserves vs. Building up assets: What is "saving" actually?
To know how much you should save, you should know the occasion or. Know the goal. In principle, two types of savings can be distinguished:
1. Build up reserves: It should be clear to everyone that the washing machine will eventually give up the ghost or that the car will need a spare part at some point. Although these events always come as a surprise in everyday life, they are to a certain extent predictable. Other major cost items in everyday life are expensive purchases (e.g., car repairs).B. a new laptop) or a vacation trip. That is why it makes sense to create reserves that are earmarked precisely for such purposes. These reserves should be relatively freely and flexibly accessible, for example in a call money account.
2. Build up assets: If you save without earmarked consumption, it is usually to build wealth. The use is completely free or. assets should make life more pleasant in old age. Whether you’re aiming for financial independence or want to secure a nice extra for retirement: Building up a little wealth is never wrong. For this to work effectively, you should invest your money over a longer period, for example in funds and shares.
How much money should be saved per month?
When considering what savings rate makes sense, you must always keep in mind that one euro is worth different amounts to different people. Someone who earns 1200 euros net must budget quite differently than someone who has 5000 euros per month at his disposal.
In Germany, the savings rate has been between 9 and 13 percent for years, according to the Federal Statistical Office. Younger people up to the age of 54 save a little more on average, which can be explained by the fact that salaries increase in this period in the job and, for example, people invest in their own homes, which also counts towards the savings rate. Nevertheless, the statistics also show: Only the richer half of German households manage to save 10 percent or more. The bottom 20 percent even have negative savings rates on average, which means they incur debt. When asking about the savings rate, the purpose should also be taken into account. As a "nest egg" or. Reserves it is recommended to have at least three net monthly salaries on the high side. So, for example, if you earn 2000 euros net, you should have 6000 euros in a call money account, in case the car or washing machine breaks down.
To build those reserves and build wealth beyond that, a savings rate of 10 percent is a good marker for you to follow. Try to divide your income as follows:
- 60 percent for essentials like rent and food
- 30 percent for any expenses
- save 10 percent
For many people, it is still not possible to set aside 10 percent of their income. In this case, save as much as you can. Even 1 percent, 3 percent or 5 percent adds up to a good amount of savings over time, which can be huge in bad times. Your goal doesn’t have to be financial independence.
How much should you save for your old age?
Unfortunately, it is becoming increasingly important to make private provisions for old age instead of relying on the state pension. Here’s how much you should save for this:
- Ask yourself how much money you want to have available when you retire. The guideline is about 80 percent of the last net income. This one you can only guess at, of course.
- Aim to spend Financial cushion for 25 years at. So you are usually at least until your 90th birthday. financially secured for the first year of life.
- Start private retirement savingsas early as possible. The longer you save, the lower your monthly outlay will be.
- Your last monthly net income before retirement is 2400 euros. Of course you can only estimate this sum.
- 80 percent of that is around 1900 euros.
- Assume that your statutory pension will be around 1000 euros.
- So you have to be a Deficit of 900 euros per month balance or. a sum of 324.000 Euro to be secured for 30 years.
That this is not necessarily achievable by putting something in a savings account every month is obvious. To reach such sums, you need to invest your assets, for example in stocks and other profitable investment products.
Also, don’t forget in your deliberations that between the ages of 30 and 60, a home is often paid off in high installments. These expenses are likely to fall away in retirement and should be considered when it comes to how much money you need each month.