With high inflation, high interest rates and a weak Swedish krona, it is not surprising that many people think a little extra about their finances and savings. The tough economy means that many hold tight to their wallets.
There are a variety of ways to save, for example savings accounts, fund and share savings. Not to mention everything there is to save for, such as pension, buffer and trips abroad.
So how should you navigate and how much should you actually save? News24 have spoken to the private economist Stefan Westerberg from Länsförsäkringar that tells you how to think about saving.
What should you save for first?
If you haven’t saved money before, it can be difficult to know where to start.
It may feel tempting to save for your pleasures, but Westerberg believes that you should start at a different end.
– The money can primarily be used to build up a financial buffer that is good to have on the day you have unexpected expenses, and then save for other things you want to do or buy in the long term, says Stefan Westerberg.
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That’s how much you should save from your salary
All people have different conditions for reaching their financial goals. These can vary considerably from person to person but also for the individual person over time, which in turn affects how much you can save.
Assuming you have the financial space to save, there is a rule of thumb to follow.
– My general recommendation is to save approximately 10 percent of the income, and that you learn to live on 90 percent of what you get in the pay envelope, says Westerberg.
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That’s how much you should save for your children
A new one investigation by Länsförsäkringar shows that the average Swedish parent saves SEK 597 a month for each individual child. At the same time, parents with a high income save SEK 675 a month for their child and parents with a low income save SEK 375.
But the expert believes that parents should save more than that for their children.
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