Why should I have a savings buffer and how do I get one?

Most people are aware that they should always have a little extra saved up in their account just in case. But that doesn’t mean it’s always easy to build a savings buffer. There’s a lot of pressure to consume, and you may feel like you don’t have any money left to put towards your savings at the end of the month. But without any savings to cover an emergency expense, you may need to resort to expensive consumer loans that can lead to a cycle of debt. 

You should therefore make savings a regular part of your budget. It’s not just extra money left at the end of the month. It’s the part of your budget you reserve for unexpected expenses, larger purchases or long-term saving. You already handle a lot of your other regular expenses with monthly payments – why not make savings in the same way?

How much savings should I have in my account?

  • You should only keep enough money in your current account to cover your normal day-to-day expenses. 
  • As rule of thumb, you should aim to have the equivalent of a couple of months’ net income slotted away in a savings account.
  • If you want to save over a longer period of time and aim for a higher return, we recommend that you make a savings plan. We are happy to help.

If you are struggling to save enough to cover your net income for a couple of months, remember that any savings you can build up will help you deal with unexpected expenses.

How to build a savings buffer?

1. Set a savings goal and make a plan accordingly

The key to saving is to set clear goals, stick to your plan and take a long-term approach. 

  • Are you putting money aside for a holiday trip next summer, 
  • building a savings buffer to prepare for unexpected expenses, 
  • aiming to grow your wealth in the long term or 
  • saving to boost your retirement income?

2. Make yourself a savings plan

Once you know what your goal is, make yourself a savings plan. As our customer, you can also book an investment meeting with us if you would like to discuss the right plan for you. It won’t cost you anything and there are no obligations. After the meeting you’ll get a proposal for the best approach for you, prepared by a professional. You decide what you want to do.

Tip! You can set yourself a savings goal in Nordea NetbankOpens new window and link your savings account or investments to the goal. This will allow you to see your progress towards your goal. 

3. How to build a savings buffer

Are you planning to start saving for a rainy day? 
  1. Open a PerkAccount and decide how much you can afford to save each month.
  2. Set a savings goal in Nordea NetbankOpens new window and track your progress.
Do you already have some savings built up?
  1. Open a FlexiDeposit Account if you want a flexible savings account that allows you to earn interest.
  2. Set a savings goal in Nordea NetbankOpens new window and track your progress.

Don’t forget to save money for your future dreams and aspirations

If your short-term goal is to build a savings buffer, your long-term goal could be to grow your wealth. For this, we recommend that you save monthly in a fund because investment funds offer a higher expected return than savings accounts over a longer period of time. Long-term saving in funds can help you make your future dreams and aspirations come true.

To invest in funds, you need to invest a minimum of 10 euros a month. There’s no such limit for savings accounts, so if you are planning to save 20 euros a month, for example, you can divide this between your PerkAccount and fund investment. 

If you would like to talk to one of our investment experts first, we are happy to help you find the best solution and prepare a savings plan for you. If you want to start investing in funds right way, see what our digital investment adviser Nora recommends for you.

Important information about investing

The information provided on this website is intended for general product information only and does not constitute investment advice or recommendations. When it comes to funds or equities, past performance is not a guarantee of future results. The value of fund units or equities may increase or decrease due to market movements, and it is not certain that you will get back the entire amount you invested.