Save Money; one is better than the other, but almost everyone has a savings account where a portion of the income is sent every month. Savings often serve as a way to cover unexpected costs in the future, but also for big, fun expenses like a vacation, study, car or house. The Dutch are known for their frugality, but how much does the average Dutch save up each month?
How much does the Netherlands save?
The National Institute for Budgetary Information (Nibud) recommend to save ten percent of your income. The website also states that data from 2019 shows that 83% of all Dutch people save.
Data from Statistics Netherlands (CBS) and the Netherlands Bureau for Economic Policy Analysis (CPB) show that we set aside around 6.5% of our salary in the Netherlands. With the average gross income, determined by payroll service provider APB, from 3,078 euros you have a net amount of 2,544 euros. At 6.5 percent, this would mean that people save an average of €152.64 per month.
To see if you’re above or below the national average, you can simply calculate 6.5% of your net salary and then compare that to the amount you set aside each month.
Yesterday you may have an estimate of your ideal financial buffer done with Nibud’s Buffer Calculator. This buffer should then act as a safety net for unexpected, major and necessary expenses. Even with the current unattractive interest in your savings account, it’s still wise to put money aside for unforeseen setbacks.
To achieve your financial goals, you can of course also choose to invest part of it. Nibud recommends always using a financial buffer so you don’t run into money problems when the performance is disappointing. This is of great importance for cryptocurrency investors, as 2022 has proved once again. The huge drop in the price of bitcoin has caused huge losses to investors.
By setting aside €833.50 each month, you would have raised a capital of no less than €100,000 after 10 years. However, investing your own money could make it much easier to reach your financial goals. However, always be aware of the associated risks.