10 Sep 2020 • 3mins • Yolt

How much of your salary should you save?


There’s no hard and fast rule about how much you should save. It all depends on what’s right for you. Here are some things that might help you decide how much of your salary to save each month.

Money going in

Before you start, you should know how much you’re being paid. You might have a general idea, but knowing exactly what goes into your account each month means you can look after the pennies as well as the pounds. Don’t forget, things like student loan and pension payments might eat into your take-home pay too.

Money going out

Now you know how much you’ve got, you need to know how much is going out of your account on things like rent or mortgage, household bills, your phone etc.

If you’ve already got a budget, you’ll probably know this already, so you’ll be able to see how much you’ve got left over for fun stuff and saving. If you haven’t got a budget, we can help you set one up in a jiffy – and jotting all these things down is the first step.

Any money left over can be earmarked for savings – and you might be able to rejig your fun fund to stash a bit more cash away for rainy days.

Doing the maths

Percentages and ratios might sound like school maths, but they can be useful in helping you work out how much to save.

Some people say you should be saving 10% of your income each month. Others swear by the 50/30/20 ‘rule’, which splits your monthly money into three pots: 50% for essentials, 30% for non-essentials, and 20% for saving. These numbers might be a bit intimidating, but the thought behind them is pretty useful. Thinking of savings more like a set outgoing can be a really good way of saving regularly, with minimal effort – once it’s set up, it happens automatically


Having an end-goal can make saving a bit easier – knowing that putting some money away now means you could be lying on a sunny beach somewhere next year definitely sweetens the deal. Whether you’re saving for a special birthday present or a house deposit, try setting your sights on something and let your savings get you there. You can use the Yolt app to cheer you on by setting up a savings Goal and tracking your progress.

Struggling with money? Check out our advice for saving money on a budget.