Even small sums gets you started

You should start saving immediately even if you have a small income – after all, time is money, so why waste it?

The force behind all this is what some people call the eighth wonder of the world: compound interest. It allows the total return on your investments to grow at an increasing rate year after year. Compound interest means that the interest you earn every year is added to your savings, so you not only earn interest on the savings, you also earn interest on the interest itself. In other words, even if you save a larger sum later on, it won’t have enough time to earn as much interest as a smaller sum you invest now.

Start saving monthly with as little as 10 euros

You might discover a saving opportunity by taking a closer look at your personal spending habits. Do you buy a cup of coffee, a newspaper, some sweets or something else on your way to work? All those little purchases can add up to a lot of money every month. Or maybe you spend large sums on streaming services or digital games? Do you end up splurging on stuff you don’t need just because it’s on sale? 

If you can spare even 10 euros a month after your essential expenses, you can start saving monthly in a fund. With regular saving, your capital will keep growing and you can reap the benefits of compounding.

Compounding is a phenomenon that illustrates how you can earn substantial returns over time even if you save little by little. When you save regularly and gradually grow your investments, your earnings will compound, and the effect of compounding will only grow bigger over time. And time is a saver’s best friend. 

See how your savings can grow over time

See the example below to get an idea of what kind of amounts you could aim for if you save 10 euros a month. If you start saving 10 euros a month and invest in a globally diversified equity fund every month for 20 years, you will have invested 2,400 euros by the end of that period, but thanks to compounding, your capital may even have doubled!

Säästämisen infograafi - Small

We at Nordea have calculated that the blue area reflects 90% of all investments, but variation may be high. The calculation does not take into account any taxes or other costs. Past performance is no guarantee of future results. The value of fund investments may rise or fall depending on the market events, so you may end up with a smaller amount than you originally invested.

  • As it turns out, 10 euros isn’t such a small sum if you save it regularly year after year. And that 10 euros is all you need to start regular monthly saving with Nordea. 

3 tips for starting monthly saving

  1. Thinking about saving in an account? Over the long term, your money will generate a better return in an investment fund than if it is left idle on a bank account with zero interest where inflation eats away at its value on a daily basis. 
  2. Don’t want to commit to anything? You don’t have to. Monthly saving in a fund does not commit you to anything or tie up your money. However much you decide to save, we can automatically transfer it for you from your account to the fund of your choice. You can check the performance of your savings in Nordea Mobile or Netbank at any time. 
  3. What if your financial situation changes? It’s up to you if you want to save more, withdraw some or all of your savings or stop saving altogether. You’ll have the money in your account in just a few days. And when the situation allows you to start again, you can always resume monthly saving.

Start saving today

Prepare a savings plan that best suits your needs, together with our advisors or our digital savings advisor Nora. We will help you get started!