4. What are the best saving tools to help you achieve your goals?

Let’s get specific!

Tom is 25 years old and has just married Anna. They would like to buy a house in 10 years and want to save up for a down payment of € 60,000. In the next few years, they’d like to go on a world tour, but the duration of their trip and the number of countries they can visit will depend on their available budget.

Monthly household income
(wages)

€ 7,000

Monthly household expenses
(rent, TV, phone, car insurance, groceries, taxes, etc.)

€ 5,000


Monthly saving capacity

€ 2,000

What should they do with those € 2,000?

=

€ 400

Available immediately in case of an emergency (car needs to be replaced) or for short-term expenses (birthdays, holidays, etc.).
To be comfortable, they should save the equivalent of about three months of pay, which for Tom and Anna would be € 21,000.

€ 500

A long-term property goal (e.g. buy, renovate):
- No temptation to use that money set aside for 10 years.
- A portion can even reduce their taxable income!

€ 100

It’s hard to think about retirement so far in advance…
- Don’t worry, depending on the type of retirement plan they choose, they could get a payout of € 42,000 when they turn 60!
- No temptation to use that money set aside until age 60.
- A portion can even reduce their taxable income!

€ 300

Why not take a small portion of their savings and try to make their dream trip a reality!
- Funds quickly available.
- Nice potential return in 5 to 10 years.

€ 700

Tom and Anna shouldn’t forget to keep money in reserve for outings with friends or for date nights.

Your next step

That's it, your budget is clear, you have good savings capacity and you want to try to make this savings grow, go here to know everything there is to know about investing in a simple and straightforward way and without complexes. 

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