How Much Should I Save Each Month? A Simple UK Plan

There is no single right amount, but a simple plan makes it easy. Test different amounts in the savings calculator UK.

The 50/30/20 rule

Split take-home pay: 50% needs (rent, bills, food), 30% wants, 20% savings and debt repayment. On £2,400 a month that is £480 towards savings.

1. Build an emergency fund first

Aim for 3–6 months of essential spending in an easy-access account. If your essentials are £1,500 a month, target £4,500–£9,000.

2. Clear expensive debt

Paying off a 25% credit card is like earning a guaranteed 25% return.

3. Save for specific goals

Divide each goal by the months until you need it. A £6,000 holiday fund in 18 months needs about £333 a month (a little less with interest).

Where to keep savings

• Easy-access savings or Cash ISA for emergencies.
• Regular savers for higher rates on monthly deposits.
• Fixed-rate accounts for money you won’t need for a year or more.
• Stocks & Shares ISA or pension for 5+ year goals.

Make it automatic

Set a standing order for payday. What you don’t see, you don’t spend.