How to use the savings calculator?

Simplify your savings calculations with our user-friendly Savings Calculator tool. Begin by clearly defining your savings objectives, whether it's saving for a dream vacation, a home down payment, or an emergency fund. Gather crucial financial details such as your initial deposit, regular monthly deposit, savings duration (in months or years), and the annual interest rate.

Input your financial data with precision, eliminating uncertainty along your financial journey. Customise the parameters to match your unique financial goals, adjusting savings duration and interest rates as needed. Review the projected savings growth and timeline for achieving your milestones. Refine your savings strategy based on the insights provided by the calculator, and monitor your progress regularly to stay on track. Here's a step by step rundown.

*It is important to note that the calculations or estimates provided here are for informational purposes only and should not be considered as financial advice. It is recommended that you consult with a qualified accountant or financial advisor before making any decisions based on the information provided.

A guide on how to save

Here's a simple step by step guide on how to save.

1. Define Your Savings Goals: Begin by defining clear savings objectives. Whether it's for a dream vacation, a down payment on a home, or creating an emergency fund, setting tangible goals provides direction and motivation.
2. Gather Your Financial Details: Collect essential financial information including your initial deposit, monthly contributions, the duration of savings (in months or years), and the annual interest rate. Accuracy ensures precise calculations.
3. Input Your Financial Data: Collect essential financial information including your initial deposit, monthly contributions, the duration of savings (in months or years), and the annual interest rate. Accuracy ensures precise calculations.
4. Review Your Savings Projection: Once all inputs are entered, review the calculated projection. Gain insights into your potential savings growth, projected interest earnings, and the timeline to achieve your financial milestones.
5. Refine and Adjust: Use the insights from the Savings Calculator to refine your savings strategy. Explore different scenarios, adjust contribution amounts, or consider varying interest rates to optimize your savings plan.
6. Monitor Your Progress: Regularly monitor your savings progress against the projections provided by the calculator. Stay informed about your financial trajectory and make adjustments as necessary to stay on course towards your goals.
7. Stay Informed: Stay updated with financial trends, savings tips, and investment opportunities available through our platform. Arm yourself with knowledge to make informed decisions and maximize your savings potential.
8. Celebrate Milestones: Celebrate your savings milestones along the way. Whether it's reaching a certain savings threshold or achieving a significant interest milestone, acknowledge your progress and use it as motivation to continue on your financial journey.

Remember to stay informed and celebrate your savings milestones along the way, empowering yourself to navigate confidently towards your financial goals.

An example scenario

Lucy, a diligent young professional, has set her sights on owning her dream home. Determined and disciplined, she's embarked on a financial journey to save for a house deposit.

With an initial savings amount of $50,000, Lucy diligently sets aside $1,500 every month from her paycheck, earmarking it for her future home. She hopes to save for her deposit within the next three years. Her bank is offering an annual savings rate of 4.5%.

Using the savings calculator, Lucy’s inputs are:

• Initial deposit: $50,000
• Monthly deposit: $1,500
• Time period: 36 months or 3 years
• Annual savings rate: 4.5%

The savings calculator will automatically determine Lucy’s total savings amount at the end of 3 years.

Lucy’s total deposits are made up of an initial deposit of $50,000 and 36 monthly deposits of $1,500.

• Total deposits = $50,000 + (36 x $1,500) = $104,000

Lucy’s interest earned is $10,911.52.

This results in a total savings amount of $114,911.52. The total savings amount is made up of Lucy’s total deposits over 3 years and the interest earned.

• Total savings = Total deposits + Interest earned = $104,000 + $10,911.52 = $114,911.52

With each passing month, she watches her savings grow, inching her closer to the down payment needed to secure her dream home. Armed with determination and a carefully crafted savings strategy, Lucy is well on her way to turning her homeownership dreams into a reality.