Your savings rate is the share of your net salary you do not spend. It shapes your financial peace of mind more than the salary itself.
How to work it out
Savings rate = (net salary − spending) ÷ net salary.
On €30,000 gross in Cataluña the net is €23,091 a year. If you spend €1,500 a month, €18,000 a year, you save the difference: about 22%.
How much to save
- 10% is a good minimum to start with.
- 20% lets you build an emergency fund and save for medium-term goals.
- 30% or more greatly speeds up financial independence.
First, the emergency fund
Before investing, put three to six months of spending in an accessible account. If you are self-employed, six or more, as your income varies more.
Save first, spend later
Set up an automatic transfer on payday. What you do not see in your current account, you do not spend. If you are paid in 14 payments, the extra payments are a good chance to save more.
Work it out in the calculator
In the "Savings" section of the calculator, enter your monthly cost of living: you will see your yearly savings and what share of your net goes on spending. To split your money better, start with a budget.