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How much of your income should you save?

Have you ever wondered - how much should I be saving each paycheck? Here we take a look at some easy ways to supercharge your savings and figure out what percentage of your income you should be putting away.

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. Bonus interest applies the calendar month after meeting the bonus interest criteria.*

  • 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 be eligible for the bonus variable rate, deposits of $200 or more must be made into your USpend account or your linked USave account from non-UBank accounts each month and you must maintain a balance less than $250,000 in that month across all your USave and USpend accounts, including joint accounts. The bonus interest rate is paid the following calendar month on balances up to $250,000. No interest is payable on your linked USpend account. Maximum balance is $5 million per customer. No minimum balance applies.

**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.


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.