Review your budget
Today's banking apps have detailed features that show income and expenses.
Now we can see how much money is spent, for example, on transportation or food, says Shoka Åhrman, savings economist at SPP.
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Identify the savings space
To know how to save, you need to know what to save for. Is it a trip, a buffer, a home, or a pension?, says Åhrman, adding that knowing the purpose is important for motivation.
The purpose of saving also determines how long-term you can be – and what type of risk is suitable. When the savings space is identified – start a monthly savings in conjunction with receiving your salary.
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Build a buffer
A buffer is the shock absorber in the economy, something many households may have used in recent years.
Many times, we economists have said that you should have two to three months' salaries in buffer. I think those are quite large amounts, says Åhrman.
What determines the size of the buffer is what unforeseen events you may face. Even life situation plays a role: are you single, have a family, rent or own a home.
The money should be easily accessible and not exposed to significant risk. Therefore, a savings or transaction account is suitable, according to Åhrman.
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Save for the long term
Depending on your life situation, long-term savings can be for retirement or children, or in a shorter perspective, perhaps a down payment for a vacation home.
The longer time you have, the less capital you need to build up a larger amount, says Åhrman and continues:
It's quite small amounts you need. You can take quite a lot of risk because it's long-term. You can then handle market fluctuations in a completely different way.
For longer-term savings, an investment savings account (ISK) or capital insurance (KF) is an alternative.
The choice depends on the purpose, knowledge, and how active you want to be. From the turn of the year, savings in ISK will be tax-free up to 150,000 kronor, and from 2026, the limit will be raised to 300,000. This can provide a basis for many to start saving, according to Åhrman.
Historically, the stock market has provided a positive return. But it's not necessary to start investing with high risk, as many think.
Start with a risk you're comfortable with, says Åhrman.
