Is Saving £25 a Month (Or Less) Worth It?
When money is tight, saving for the future can feel like something to think about later.
There are bills to pay, things to buy and more immediate priorities competing for your money. Putting away £25 a month might not seem like it will make much difference.
But long-term saving is less about how much you can put away today and more about giving your money time to build.
You don't need to start with hundreds of pounds a month. A small, regular amount can help you build the habit of saving and give you the opportunity to build a larger pot over time.
How much can you save by putting away £25 a month?
£25 a month can add up to more than you might expect:
£300 after 1 year
£1,500 after 5 years
£3,000 after 10 years
That's simply the money you've put aside yourself, before any interest or returns.
See what saving £25 a month could look like with interest with the saving slider on our UK Savings Week page!
What difference can an extra £5 or £10 make?
You don't need to make a huge change to your monthly savings to make a difference.
If you currently save £25 a month, increasing this to £30 would mean:
£360 saved each year.
That's an extra £60 compared with saving £25 a month.
Increase it to £35 and you'd have:
£420 saved each year.
That's an extra £120 a year.
The important thing is choosing an amount that fits comfortably within your budget.
See how adding just £5 a month could increase your savings over time with the saving slider on our UK Savings Week page!
Why is saving for the future important?
Not all savings need to be for something you're going to buy next month or next year.
Long-term savings can help you build money for the future and give you more options later in life.
You might eventually use your savings to:
Pay for a major expense
Work towards a future goal
Support yourself through a change in circumstances
Supplement other savings or investments
Give yourself greater financial flexibility later in life
You don't necessarily need to know exactly what the money will be for when you start.
You're giving your future-self more choices.
Why does starting early matter?
The longer you save, the more time you give your money to grow.
For example, saving £25 a month for 10 years means you've put aside £3,000 yourself.
But what happens if your savings earn interest too?
Example:
Plane Saver's Cash ISA currently pays 3.75% AER variable.
Let’s say you saved £25 every month for 10 years and the rate stayed at 3.75% throughout…
With interest compounded monthly, you'd have around £3,621.
That's around £621 more than the £3,000 you paid in.
This is an illustration only. It assumes a constant 3.75% rate for the full 10 years and monthly compounding. The Cash ISA rate is variable, so the actual amount you could earn will depend on the rate available over time.
You're not just giving yourself more time to save. You're giving your savings more time to earn.
And you don't need to start with £25. The same principle applies whether you're putting away £5, £10 or £25 a month.
How much should you save each month?
There isn't a magic number that everyone should save.
The right amount depends on your income, regular expenses and what else you need your money for.
If £25 is comfortable, start with £25.
If you can only manage £10, that's still a start.
And if you find you have more room in your budget later, you can increase it.
The aim isn't to save as much as possible at the expense of everything else. It's to find an amount you can save regularly and maintain over time.
Make the most of UK Savings Week
Savings Week runs from 21 to 27 September, making it a good time to look at your savings and think about your longer-term financial goals.
If you already save regularly:
Ask yourself whether you could comfortably increase your monthly amount by £5-£10.
If you're not saving yet:
Consider whether there's a small amount you could start putting aside.
See what you could save using the saving slider on our UK Savings Week page.
Adjust your Monthly Saving Deposit With Plane Saver
Saving via payroll?
Use the Payroll Deduction Request Form
Saving via Direct Debit?
Use the Direct Debit Application Form!
