As the old saying goes, ‘every little helps’, but can saving just £20 a month really build to anything substantial? EvolveMyRetirement has created this infographic to illustrate how small regular savings can accumulate over time.
Are Small Savings Useful?
As the infographic shows, at a saving rate of £20 a month, the latest smartphone would take you three years to save for – by which time, it’s no longer the must-have model.
Even if you were to increase your savings by 150% (to £50 a month), affording the latest designer shoes would be at least a year away.
What about saving £250 every month? Surely your prospects are better?
Of course, saving at this rate, smartphones and designer shoes become affordable much quicker – a matter of months, rather than years. But chances are, anybody saving this percentage of their salary is aiming higher than gadgets and shoes.
If you’re a first-time buyer raising the deposit for a home, you’ll have to put away £250 for over a decade to reach the average deposit for a home (£32,000 as of 2017).
It would seem that small and even significant savings don’t look like a good option, even in the long run – but we know that’s not true. Plenty of people make even the most modest savings work for them. So, how’s it done?
The infographic below is illustrative and reflects general examples rather than personal financial recommendations. Click/tap the infographic for a full-size view:
Make Your Savings Go Further
Our infographic outlines ways people commonly approach saving, even with small amounts. From shedding your debt and building an emergency fund, to getting the best interest rates on savings, we’ve outlined some basic building blocks that many people consider when forming a saving plan.
Feel free to download this infographic for later use, and share it along to help other savers!
If you are exploring long‑term financial planning, EvolveMyRetirement offers a free calculator that models different scenarios!
Sources
- https://www.theguardian.com/money/2014/nov/07/regular-investing-whether-you-have-10-or-500-theres-a-place-for-you
- http://www.cfinancialfreedom.com/13-ways-save-money-low-income/
- http://www.moneysavingexpert.com/savings/which-saving-account
- http://www.mortgagesolutions.co.uk/news/2017/01/13/average-first-time-buyer-deposit-doubles-32000/