Savings Goal Calculators
Disclaimer: Whilst every effort has been made in building these savings goal calculators, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of them. Full disclaimer. These tools are here purely as a service to you, please use them at your own risk.
How long will it take to save?
Whether you're waiting to buy a new car, saving for your dream holiday or raising a deposit for a new house it can be tricky to work out how much to save and how long it might take you to reach the amount you need. By using the first calculator above as a guide, you should be able to work out the length of time you might have to wait in order to hit your target figure. And by playing around with increasing your deposit figure, you can see how much quicker you can then reach your goal.
Saving tips and strategies
Once you know how long it might take you to save for your goal, you can begin working on some strategies to help you save the additional money each month to achieve it. Here are a few ideas to consider:
1) Increase your income
- Side Gigs: Consider taking up part-time work, freelance gigs, or monetizing your skills (e.g., tutoring, coding, artwork).
- Ask for Cash Gifts: Politely request cash gifts for birthdays or holidays instead of material items.
- Seek Better-Paying Jobs: Look around for higher-paying positions or, if you're feeling confident and deserve it, ask your boss for a raise.
- Sell Unused Items: Consider decluttering and selling things you no longer need, to raise additional funds.
2) Save a larger portion of your income
- Budgeting: Utilise budgeting apps to track and plan your expenses. Fortune has a good list.
- Reduce Impulse Buying: Make sure you shop with a list, avoid unnecessary subscriptions, and consider paying with cash to avoid credit card interest.
- Bulk Purchases: Look out for multi-buy offers to buy essential items in bulk to save money over time.
3) Extend the saving period
- Plan for the Long Term: If you're saving for an expensive item, extend your savings timeline to make it more manageable.
- Stay Flexible: Adjust your savings plan if you need to, especially if a new or better option arises over time.
4) Opt for cheaper alternatives
- Consider Second-Hand: Consider high-quality, pre-owned items instead of buying new.
- Older Models: Once new electronics models are released, the price of previous models often drops significantly. Buying these older models can provide similar functionality at a lower price.
- Evaluate Necessity: Weigh up the benefit of buying and having expensive items against the impact on your savings goal.
5) Make your money work for you
- High-Interest Savings Accounts: Shop around for savings accounts that have competitive interest rates and be prepared to switch if rates drop over a period of time.
- Invest for the Long Term: Investigate safe investments for goals that are more than three years away, such as ISAs or robo-investing platforms.
- Speak with a financial advisor: Consider seeking help from an independent financial advisor for personalized advice on where to put your money.
In summary, reaching your savings goal faster may require a mix of increasing your income and cutting unnecessary expenses. You can read our full article containing savings tips for young people here. Investopedia also has a good article discussing some ideas for saving for financial goals, which you can find here.
Savings withdrawals
If you want to better understand the longevity of your savings, work out how long your savings might last you in retirement, or get some ideas for managing your savings pot, you may wish to check out our money withdrawal calculator tool.
How much to save each month
Financial advisors commonly recommend setting aside 20% of your after-tax income every month for savings, with 50% of your income reserved for essentials such as rent and food and 30% for discretionary spending (vacations or luxury items). This is commonly called the 50-30-20 budgeting method. However, it may be that you're looking to hit a certain savings target in order to invest in something big. In this case, you may need to temporarily adopt a different saving policy and set aside a little more money each month. Use our calculator, above, to work out how much to save each month.
As alternatives, if you want to work out how much interest you can earn on a lump sum, you can try our compound interest tool or our simple savings calculator.
Calculator by Alastair Hazell.