What Is a Normal Amount of Savings?

How much savings are considered normal depends on several factors, including your income, age, lifestyle, and goals.

• Age 🎉  An accountant of 40 years old will likely have a higher salary and a more well-stocked savings account than a 15-year-old student with a newspaper route.
• Lifestyle 🛍️ How much you save also depends on how much you spend and how financially conscious you are. If you only buy designer clothes, you'll save less than if you shop at second-hand stores. Do you cook every day or often order food? Your lifestyle plays a significant role in your spending and, therefore, how much you can save.
• Goals 🚩 How much you have saved also depends on your savings goals. Are you saving for unexpected expenses or working towards a (big) goal?

Saving for an Emergency Fund 💰

It's wise to set aside money for unexpected expenses, like a visit to the vet or a broken boiler. The potential costs will depend on your lifestyle. For example, replacing a simple kitchen lamp is cheaper than a chandelier. A common recommendation is to have 3 to 6 months' worth of fixed expenses as an emergency fund.

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Saving for a Goal 🚩

You might also save for specific goals, like buying a house, education, taking a big trip, or retirement. How much you save depends on your goals and the time you have to achieve them.

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How Much Savings for Each Age? 👶🏼👵🏼

Ultimately, the amount in your savings account depends mostly on your age. As you approach retirement, you've had decades to save and generally earn more than when you're 20 years old.

To give you an idea of what’s considered ‘normal,’ the Central Bureau of Statistics (CBS) has compiled the savings of Dutch people by age group:

Average and Median

There’s a big difference between the average savings and the median. The average is calculated by adding up all the savings and dividing the total by the number of people. The median is the number that sits right in the middle.

The average savings amount is significantly raised by those who are fanatic savers. Therefore, it’s also useful to look at the median. For example, if you’re 24 and have €3,500 in savings, then 50% of people have more savings than you, and 50% have less.

So, What Is a ‘Healthy’ Amount in Your Savings Account?

That depends on various factors, but you could generally say that you’re doing well if your savings fall between the median and the average.

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Saving with Grassfeld 🤑

Grassfeld helps you achieve your savings goals. In the free app, you can set up a savings goal. You then enter the amount you want to reach and set a deadline. Grassfeld calculates how much money you need to set aside each month.

Additionally, we help you saving moneyby giving you insight into your financial situation. The app automatically categorizes your expenses, allowing you to see exactly where your money is going. Download Grassfeld now in the app store.