Ask Harry: How much money should I be saving?


It’s one thing to know that you should save a portion of your income, but how much should you actually be saving? Do you still save if you’re paying a mortgage off? Relax, Harry’s got your answers.

How much money should I be saving?


While there is no ‘hard and fast’ savings rule, you might aim to target a savings rate of between 10%  and 20% of your take-home pay (net income) if you’re truly serious about growing your wealth. 

This figure should, of course, be adjusted depending on your personal circumstances, and whether you’re saving for a particular financial goal.

For example, if you’re saving to buy a first home you might need to save significantly more than 20% of your take-home pay while you build that all-important deposit. 

If, however,  you are already repaying a mortgage (which itself is a form of saving), and you’re more concerned about future childcare or schooling expenses, a savings rate within the 10% – 20% range may be more appropriate.

The key thing about savings is to start as soon as possible. This has two benefits.

First, it helps establish saving as a habitual behaviour, making it just another part of living a well-balanced, productive life.

Second, it allows the benefits of compounding (returns earned on previous returns) to be maximised by impacting on more dollars for longer. 

In summary, save early and save often. Make saving a habit. Aim to earn a decent return, after inflation and tax, consistent with your investment timeframe and risk capacity. Keep costs under control. Do these things and you’ll be on the path to a brighter financial future.

If you’re ready to get that savings plan into action, then get started with our free financial health check to learn how much you should spend, save and stash in 5 questions.

Who is Harry?

Ask Harry

Harry has over 20 years of experience in wealth management. In that time he has advised both individual and institutional investors. Previously a Certified Financial Planner, he now is a Certified Investment Management Analyst. So.. he knows his stuff.

When not making personal finance easier and less intimidating for Aussies, Harry loves his weekend bike rides and spending time with his wife and son. He’s pretty much the finance-savvy uncle you never had.

Got a question for him? Send him a question at and connect with him on LinkedIn.


clover investment

Clover is a personal financial advisor and an online investment service for Australians.

Get your free, personalised investment plan using this link.