How much can you save?
How much can you afford?
Before you start to save, decide how much you can afford to put aside each week or month and for how long. To do this look at your income, what you spend each month and what you owe on any loans.
Our useful budget planner helps you to see how much you will have left over to save or invest. You can then set about outlining your savings plan. To do this, you need to:
Clear your debts first
Paying extra off outstanding loans or clearing your balance on your credit cards will save you money. Paying extra off your loans means you get charged less interest and helps you to clear your debts faster, often giving you a better return than other forms of savings.
For example, if you have a €10,000 loan over four years, at an interest rate of 10.1% and pay an extra €100 a month from the start of the sixth month, you would save €583 in interest and pay off your loan 13 months quicker. If you put that €100 per month in a savings account, you could earn €26 over a 12 month period, based on an AER of 4%. So, if you have loans, think about whether you should pay them off first before you start saving.
Use our loan calculator to see how much you could save if you reduce the amount you borrow. Then compare it to how much you would earn if you saved your money instead.
Last updated on 24 August 2023