Exactly how much you need to be saving every month – ‘It’s tricky’

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How much, exactly, each of us should save varies on our income, our goals, and what we want our retirement to look like. Financial educator Ellie, who is behind finance platform This Girl Talks Money and the Money Unfiltered Podcast, discussed saving.

Many wonder exactly how much they should be saving, and, according to Ellie, it does vary.

Ellie told Express.co.uk: “It’s tricky because it totally does depend on your income and what you are trying to achieve.”

The most important thing, she says, is making sure people have a reserve fund.

“If you don’t have any savings, focus on purely saving and aim to build up a bit of a reserve in an instant access account so you’ve got it if anything happens,” she said.

“We’ve seen over the last year, you never know what’s going to happen.

“So, if you can build up a couple of months’ worth of expenses for emergencies that is a good place to start.”

Once a person has their cash reserves, what is the next best method to save cash?

Ellie said: “What I would say as a starting point is, if you can, aim to set aside between 10 and 20 percent of your income for future you.

“So, in a saving account and or investments, whatever that looks like for you.”

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Monthly, how much should a person save? Ellie said: “Anywhere between 10 and 20 percent is a good ballpark.

“If you have more available then, of course, the more that you can set aside for the future, the better.”

However, the financial educator has an important caveat to her suggestion.

She said: “Don’t do it at the expense of like having a life right now.

“I really don’t think advocating saving all of your income is sustainable or realistic. So, find the number that works for you.”

Where is the best place to save your money for maximum returns?

Financial advisor and money influencer Mrs Mummypenny undertook an investigation.

She put £1000 into different saving methods and found one had an incredible 23 percent 

She found putting her money in her pension gave her the best return.

However, referencing her age, she added: “That means the money’s locked up for 13 years.

“It’s a very long-term decision so you have to be sure that when you put money in that you definitely, definitely can afford it.”

A stock and shares ISA provided the second-best return, of 19.3 percent.

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