{"id":687425,"date":"2026-03-28T08:02:23","date_gmt":"2026-03-28T08:02:23","guid":{"rendered":"https:\/\/www.europesays.com\/us\/687425\/"},"modified":"2026-03-28T08:02:23","modified_gmt":"2026-03-28T08:02:23","slug":"im-an-accountant-heres-how-much-you-should-save-per-year-based-on-your-salary","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/687425\/","title":{"rendered":"I’m an accountant – here’s how much you should save per year based on your salary"},"content":{"rendered":"

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\n\t\tIt\u2019s time to get smart with your savings (Picture: Getty Images)<\/p>\n

In this day and age, saving a substantial amount of money<\/a> each month can be a challenge. <\/p>\n

Once you\u2019ve paid your mortgage<\/a> or rent, settled your bills, and done your weekly food shop, often there\u2019s little left to squirrel away. <\/p>\n

And for many, that\u2019s before being able to spend your hard-earned cash on \u2018little treats,\u2019 from dinner and drinks<\/a> with friends to relaxing holidays.<\/a><\/p>\n

However, it\u2019s not all doom and gloom in the world of personal finance. <\/p>\n

Despite 61% of UK consumers<\/a> finding it harder to save compared to this time last year \u2014 caused by the cost of living<\/a> crisis, which continues to squeeze finances \u2014 there are ways you can save some money if you know how.<\/p>\n

Metro<\/strong> spoke with chartered accountant Nicole Zalys,<\/a> also known as The London Accountant<\/a> on social media<\/a>, to get her top saving tips. Plus, to find out how much you could realistically save per year based on your salary.<\/p>\n

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\n\t\tNicole Zalys, aka the London Accountant, has shared her money knowledge (Picture: Supplied)<\/p>\n

Disclaimer: We\u2019re aware that, even though some people may be on the same salary, outgoings are likely to be different. <\/p>\n

When factoring in variables like rent, mortgages, financing cars, and kids, very different amounts will leave people\u2019s bank accounts<\/a>. Therefore, saving goals might be different.<\/p>\n

Nicole\u2019s top saving tips<\/p>\n

Drawing on extensive experience of her own and that of her clients, Nicole explains that saving money is something almost everyone says they want to do more of. Yet for many, it remains harder than expected.<\/p>\n

According to the FCA\u2019s Financial Lives Survey, the average UK household has just \u00a31,000 in accessible savings<\/a>. So why do so many people struggle? <\/p>\n

Here, Nicole shares three things you can do money-wise that will consistently make a difference:<\/p>\n

First, automate it<\/strong><\/p>\n

Nicole reveals that research across 94 studies found that specific \u2018if then\u2019 plans can double follow-through rates.<\/p>\n

\u2018A rule such as \u201cwhen my salary lands, I transfer \u00a3X\u201d is far more effective than relying on willpower alone,\u2019 she adds.<\/p>\n

Make the future feel tangible <\/p>\n

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\u2018Our brains tend to treat our future selves like strangers, which helps explain why saving is so easy to put off.\u2019<\/p>\n

Her advice? Give your goals a name. Make them personal.<\/p>\n

Reframe it<\/p>\n

Third, if saving feels like deprivation, Nicole advises reframing it as paying your future self.<\/p>\n

\u2018You are not giving something up. You are spending on someone who happens to be you.\u2019<\/p>\n

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\n\t\tIs it time to re-evaluate your savings strategy? (Picture: Getty Images)<\/p>\n

Additionally, while many attempt to follow the popular 50\/30\/20 rule<\/a>, which suggests spending 50% of your monthly salary on needs, 30% on wants and 20% on savings, Nicole says it was actually designed with the American middle class in mind. <\/p>\n

Therefore, for individuals, couples, or households in expensive cities like London<\/a>, housing alone can swallow a huge share of income.<\/p>\n

What to do before starting to save<\/p>\n

\u2018Before looking at the numbers, one point matters most,\u2019 states Nicole. \u2018If you are carrying high-interest debt, especially on credit cards, paying that down should come before building savings.\u2019<\/a><\/p>\n

Clearing a balance charging 20% interest is effectively the same as securing a 20% guaranteed return, something no ISA or savings account is likely to match.<\/p>\n

Once that is dealt with, the expert explains that the targets below become far more meaningful. <\/p>\n

Even if you don\u2019t hit them every month, it\u2019s important not to be disheartened: Living costs are high, but these figures are a useful benchmark.<\/p>\n

How much should you save based on your salary?<\/p>\n

Below, Nicole has zoomed in on six salaries. From sharing the average monthly take-home amount to a savings target, hopefully, it helps make your money journey easier. <\/p>\n

Again, don\u2019t stress if you don\u2019t relate to these figures \u2014 saving in whatever capacity you can is still good practice. No one\u2019s financial experience is the same, so it\u2019s important not to compare yourself to others and their situations.<\/p>\n

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\n\t\tEveryone is on their own financial journey (Picture: Getty Images)
\n\u00a320,000 salary<\/p>\n

\u2022 Take-home: <\/strong>around \u00a31,493 a month<\/p>\n

\u2022 Target:<\/strong> 3%<\/p>\n

At this level, \u2018most income will go straight on housing and essentials,\u2019 states Nicole. Even saving \u00a325 a month matters because consistency is what builds the habit.<\/p>\n

\u2018It is also worth making full use of a workplace pension<\/a>, as the employer contribution is effectively free money.\u2019<\/p>\n

\u00a325,000 salary<\/p>\n

\u2022 Take-home: <\/strong>around \u00a31,793 a month<\/p>\n

\u2022 Target: <\/strong>5%<\/p>\n

This is still a tight income, particularly in cities. However, \u2018consistency matters more than the amount itself.<\/p>\n

\u2018A Lifetime ISA offers a 25% government<\/a> bonus on up to \u00a34,000 a year, making it one of the strongest guaranteed returns available for first-time buyers or retirement savers.\u2019<\/p>\n

\u00a330,000 salary<\/p>\n

\u2022 Take-home:<\/strong> around \u00a32,090 a month<\/p>\n

\u2022 Target:<\/strong> 7%<\/p>\n

\u2018Before anything else, this is the point at which aiming for an emergency fund becomes particularly important,\u2019 says Nicole. Covering three months of essentials, roughly \u00a33,000 to \u00a34,500, can make a significant difference.<\/p>\n

\u2018Research suggests<\/a> people with this kind of buffer tend to make better financial decisions.\u2019 <\/p>\n

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\n\t\tDo you have a comfortable safety buffer? (Picture: Getty Images)
\n\u00a340,000 salary<\/p>\n

\u2022 Take-home: <\/strong>around \u00a32,693 a month<\/p>\n

\u2022 Target: <\/strong>10%<\/p>\n

At this level, Nicole says it\u2019s worth making the most of your Cash ISA allowance, currently \u00a320,000 a year tax-free, while also reviewing whether your pension contributions are working hard enough.<\/p>\n

\u00a350,000 salary<\/p>\n

\u2022 Take-home: <\/strong>around \u00a33,293 a month<\/p>\n

\u2022 Realistic target: <\/strong>12%<\/p>\n

You are approaching the 40% tax threshold, which means that where you save becomes almost as important as how much you save.<\/p>\n

\u00a360,000 salary<\/p>\n

\u2022 Take-home: <\/strong>around \u00a33,780 a month<\/p>\n

\u2022 Realistic target: <\/strong>15%<\/p>\n

\u2018This is the point at which the High Income Child Benefit Charge begins to bite, but pension contributions can reduce or even eliminate it entirely,\u2019 the expert explains. <\/p>\n

Maxing out your ISA, reviewing salary sacrifice and speaking to a financial planner may all be worth considering.<\/p>\n

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\n\t\tIt might be time for that pay rise\u2026 (Picture: Getty Images)
\nBottom line?<\/p>\n

\u2018Sometimes, though, the answer is not saving more but earning more,\u2019 educates Nicole.<\/p>\n

In an inflationary environment, there is only so much to be gained from cutting back. Energy, rent and food are structural costs. For many people, the more powerful lever is income.<\/p>\n

\u2018Asking for a pay rise remains one of the highest-return financial moves available, and while many employers do not offer increases proactively, they will often respond when asked.<\/p>\n

\u2018Even a side income of \u00a33,000 to \u00a35,000 a year, if saved in full, can outperform years of budgeting on a lower salary.\u2019<\/p>\n

These figures are based on typical observations and should be treated as a guide rather than a rule. Always seek financial advice before making major decisions.<\/p>\n

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