Skip to main content

How much money should you save?

How much money should you save?

We live in seemingly secure times: The average wage is high and the population is (mostly) doing well. But such times can quickly be over. As recently as the last National Council election, many politicians warned of an impending recession in Germany that could also threaten the domestic economy. More and more Austrians therefore want to save and put some of their money aside.

Many ask themselves the question: how much money should be saved?

Regardless of whether you are saving for a future investment or for retirement, the monthly savings rate determines how much money is accumulated.

Therefore, in the following article, we analyze how much money you should save to achieve a satisfactory result - now and in the future.

Like do you save at all?

How much money saveIf you search online for the term "saving" you will quickly come across the Wikipedia article with the definition.

Meaningfully, it says that when you save, you "forgo the consumption of income" and deposit the money for later use.

So anyone who puts money aside for future use is a saver by this description.

If you save a lot of money, you can increase your own standard of living in the future, for example. Many people also save in order to be able to live life with the security of still having reserves.

Some experts distinguish between savers who save for a defined goal (e.g. for a new car in 2 years) and savers who simply want to accumulate reserves for the future (without a specific goal).

What are the goals in saving money?

Everyone can define their own savings goal for themselves. Basically, it is about accumulating money for later use.Save money goal

A classic savings goal for many people these days is, for example, to accumulate money for retirement. Experts believe that the pension systems in many European countries will be so overstretched by aging and other problem areas that pensions will not be sufficient for many people. One thing is clear here: anyone who saves money for retirement will have an easier time later on.

The extreme form of a super saver is the frugalist.

Frugalists want to set aside enough money each month to retire significantly earlier than the average population. These people put aside more than 50% of their income to save. On the website Oliver blogs around the topic of frugalism.

Recommended books about frugalism (top 3 bestsellers):


Apart from saving for the distant future, there is also saving for a specific goal in the near future.

That could be the car you so desperately want, for example - or the new 4K TV.

If you know the target date and the price, you can easily calculate how much you want to save per month.

Example: How much do I need to save per month to be able to afford object XYZ, which costs 5,000? in 1 year? 5.000 : 12 = approx. 417 ? per month
How much money do I need to save? Savings calculator

Important: The advantages of a fixed savings rate

Fixed savings rateWhether you are one of the high or low earners in this country, a fixed savings rate will definitely help you build a small fortune in the long run.

The savings rate is defined as a percentage and on the basis of it you can set up an automatic debit to the account to send money to the savings account automatically at the beginning of each month.

The fact is: the more money you have at your disposal, the easier it is to accumulate a lot of money. That is logical.

But even low-income earners can save enough money - if they increase their savings rate.

Let's look at this based on a net income of 1,200?

  • Savings rate of 10% = 120?
  • 20% = 240?
  • 30% = 360?
  • 40% = 480?
Those who actually manage to achieve a savings rate of 30% or more with an average net income of 1,200? are already ahead of the game.

Of course, it's easier for those who earn more. Here, a savings rate of over 50% is no utopia.

Here is an example with a net income of 2,500?

  • Savings rate of 10% = 250?
  • 20% = 500?
  • 30% = 750?
  • 40% = 1.000?
  • 50% = 1.250?

If you believe various surveys, the average savings rate of the population is somewhere around 10%. If you can't manage more, you can be happy with 10%. But if you want to save more money quickly, you should try to start the race with a savings rate of 30% or more.

Example: Alex earns 1,200? net. He has a savings rate of 30% (360?). After one year Alex has already 4.320? saved, after two years 8.640?.

Consume or Save?

Consume or saveThe temptations in our modern world are great: everywhere you look, the supposedly best and greatest products are waiting - new iPhones, cars, clothes and other things that awaken desire in people.

If you are not in a good mood or simply need a kick, it can happen that you fall into lust and buy one or more unnecessary things.

However, anyone who considers what they could afford if they saved a little longer will quickly realize that quick impulse purchases are anything but sensible.

Stupid people spend most of their money on consumption and save with the rest. Intelligent people put most of their money into their savings account and consume with the rest.

Anyone who has saved up a large four-, five- or even six-figure sum will never want to miss this feeling of freedom and security again. Because even if something should go wrong in life, you still have an ace up your sleeve - your savings.

Passive income: An opportunity for more revenue

How much money to save - Passive income

As mentioned a few paragraphs above, people with a higher monthly income find it much easier to save a lot of money.

In most jobs, it's not that easy to move up to the next pay grade or earn more "just because."

This is where a particularly interesting source of revenue comes into play: The passive earning money.

Passive sources of income are sources of money that are not fixed to a temporal work. This means that you earn money even when you are not actively working.

Explanation: With passive income, first of all "magnets" are installed that bring money. Although this requires some work, but if everything works out, you then regularly "automatically" generate money.

Especially the Internet offers many opportunities to earn money passively. Subscribe to the newsletter and we will send you our list of 46 income sources on the Internet + free eBook:

[optin-cat id=4161]

Interesting passive sources of income

Interesting sources of income for saving One source of income that is becoming increasingly popular is the Crowd-Investing. In the process, many people invest together in a project (usually in the real estate sector). This can be done with a three-digit amount. The repayments take place regularly thereafter.

Among the more lucrative methods is also the Creation of your own website. You choose a topic that you know very well and where you can write a lot about it. Advertisements are then placed on the website - and you start earning money.

Especially exciting for amateur photographers: The Stock photos sale. On stock photo platforms, any good photographer can register and then post his photos. If who wants to have the photo, he must pay - and the photographer earns money on each sale!

Owning real estate can be an excellent passive source of income: Monthly rental income come automatically and can be used directly to save.

The suggestions above are an excerpt from our Mega guidebook on how to earn money passively. There we have collected 12 passive income sources - for beginners and advanced.

Conclusion: How much money should you save?

How much money you should save depends entirely on your own living conditions and expectations for the future.

If you are saving for a goal (e.g. a new car), you can use our savings calculator to find out how much money should be put aside each month.

In this day and age, it also pays to save money for security, as pensions in a few decades are anything but secure. The higher the monthly savings rate, the more money will accumulate in a shorter time.

Successful savers manage to resist the temptations of consumer society and put aside a large part of their income. This benefits them in later years of life.

Those who do not earn enough money to achieve an adequate savings rate can try to increase their savings budget by installing passive income sources in order to be able to save a larger amount each month.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?