How much of your income should you save each week/month?
Whether you get paid weekly or monthly, it all depends on how much you earn.
There’s a popular trick called the 50/30/20 budget split and it’s an easy way of working out how much you should save and how much you should spend. Start by dividing your income into three parts:
- 50% of your salary is for needs like housing, food, power bills... pretty much anything you need to live.
- 30% is for your wants, like restaurants, streaming sites and a gym membership.
- 20% is for your savings fund.
So, if you make $1000 a week, that’s $500 towards all your living expenses, $300 for the fun stuff and the leftover $200 is how much to save. Simple, right?
For those who like to feel super secure, you might think saving half your income is a good idea. Ultimately it depends on how much you earn and what you’re comfortable with.
Tips for how to save more money every month
Looking for some life hacks to kick your savings into overdrive? Here’s a handy list to help you hit your goals.
- Try meal prepping. Having lunch and dinner sorted for the week means you can avoid last-minute takeaway meals.
- Keep an eye out for supermarket sales and search for discount codes when online shopping.
- Make your coffee at home. The little things really do add up.
- Leave a little more time and walk to your destination where possible.
- Cancel any subscriptions you signed up for but never use.
- Set up automatic transfers to your savings account on the days you get paid. Out of sight, out of mind.
Tools to help you save
There’s heaps of perks when you’re a UBank customer. Here’s some of our tools and features which could help boost your savings:
- You can earn bonus interest on up to 10 USave savings accounts. You could set up one for your needs, wants and savings. Cha-ching!
- Linking your USave and USpend transaction account and depositing $200 or more each month from a non-UBank account will keep those savings growing with bonus interest landing in your USave account. You’ll need to keep the total balance of all your USave and USpend accounts under $250,000 to be eligible for the bonus rate. You'll earn the base rate for anything extra! Bonus interest applies in the same calendar month the criteria is met.*
- Make the most of our in-app budgeting tool Free2Spend, which helps keep your savings on track by giving you an amount to spend each day.
- The UBank app helps you earn the maximum amount of interest on your savings with Sweeps. This optional tool moves money from your USpend account to your USave while you sleep to keep your savings growing**.
How much you save each week, and how you like to save is totally up to you. Give the savings/ spending split a go and try some of our tips to help reduce your daily expenses. Saving your cash isn’t always easy, but it’s always worth it.
*To qualify for the bonus variable interest rate on eligible amounts in your USave account(s) in a calendar month, you must have both a USave and USpend account and deposit $200 or more into your USpend transaction account or your linked USave savings account from non-UBank accounts during the same month. The bonus variable interest rate will be applied to a combined balance of up to $250,000 held in your USave account(s), including joint accounts. Any remaining balance greater than $250,000 will earn the USave base variable rate. Bonus interest is earned the same month you meet the bonus interest criteria. If you qualify for bonus interest, your interest will be paid in 2 credits. The first credit is calculated using the base variable rate, and will be visible in the morning of the 1st of the following month. The second credit is the Bonus Interest, which will be processed overnight on the 1st, so please check your account on the 2nd of the following month.
**For your security,we don’t Live Sweep credit transactions. This includes tap and pay on your physical card and digital wallets like Apple Pay, Google Pay and UBank’s Tap & Pay.
Before making a decision to acquire USave or USpend, you should obtain and consider the Terms and Conditions available at ubank.com.au. USave and USpend are issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.