Tips & tricks - 21 10 20 How should you build a savings buffer ?

man with money in piggy bank

A consumer survey carried out by the National Bank of Belgium shows that 7 out of 10 households have a savings buffer of more than 3 months, in order to cover the necessary expenditure (rent, purchases) and to make a living. What is a good savings buffer? How much should you put aside?

Why create a savings buffer?

A savings buffer refers to the fact that it is best to set up a separate savings account that can be used for unforeseen costs and emergencies. Think, for example, of sudden loss of income, repairs to your home, your car, you name it. So it is best to put money aside and put it in a separate savings account so that you won't get the money quickly.

How much should I put aside?

There are various methods to determine your savings buffer.

  • Based on your income: at least 3 to 6 months net salary. Ideally, this is 6 to 12 months.
  • On the basis of your expenses: In principle, you should develop a savings buffer that covers your current expenses for 6 months. What are your fixed costs (food, telecom, energy, rent, loans,...) every month? List them, you can use a household budget book. Also take into account costs that you do not receive monthly, such as payment of your fire insurance, hospitalisation insurance, car insurance.(source:spaargids.be)
  • Use the buffer calculator from NiBUD (The National Institute for Budget Information)

How can you achieve your savings target more quickly?

List all your expenses and see where you can save.

  • Think of variable costs such as restaurant visits, sandwiches, ...
  • Fixed costs such as energy, telecom, insurance, these are often overlooked. You can easily save on these by comparing the different suppliers. ROOV will soon compare this for you if there are cheaper suppliers for you. You will then only have to upload an invoice in the app, indicate that you want to optimise it and we will look for you whether or not you have the best deal on the market.. 

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