Saving

What is Saving?

Saving is setting aside money you have earned rather than spending it, building a reserve that protects you from shocks and funds the things you want in life.

Why Saving matters

Emergency savings are the single strongest predictor of financial wellbeing – stronger than income, debt levels, or investment returns i
Most people have dangerously thin buffers – 24 – 27% of adults have no emergency savings at all, and only 27 – 28% have six or more months of expenses saved i
The psychological cost of not saving is enormous – people without emergency savings spend an average of 7.3 hours per week worrying about finances, nearly double the rate of those with even a modest buffer i
Consistent saving behaviour is rare – the national savings rate hovers between 3 – 5%, and the bottom 40% of earners have negative savings rates, meaning even modest discipline puts you well ahead
Saving creates genuine choice – a financial buffer turns forced reactions into deliberate decisions, giving you the freedom to leave a bad job, seize an opportunity, or weather a crisis without going into debt

Saving Values

Your approach to saving depends on what aspects you value most. This guide balances three core values, with percentages indicating the relative weight given to each in our recommendations.

For personalised recommendations based on your unique priorities, visit Saving Personalised, where you can adjust these value weightings to see which interventions work best for your specific goals and preferences.

Security (35%)

Building and maintaining a financial buffer against unexpected expenses and income disruption.
Emergency funds, insurance, and ensuring reserves can absorb shocks without resorting to debt.
People who prioritise this value focus on stability and protection from downside scenarios.

Lifestyle (35%)

Saving toward specific lifestyle goals – holidays, experiences, purchases, and planned upgrades to quality of life.
Targeted savings accounts for near-term goals, balancing present enjoyment with future security, and ensuring saving enhances rather than restricts your daily life.
People who prioritise this value see saving as a tool for living better, not just surviving emergencies.

Growth (30%)

Accumulating wealth over time through consistently high savings rates.
Steadily increasing net worth, maximising the rate at which savings compound, and sustaining saving discipline across years.
People who prioritise this value focus on the long-term trajectory of their wealth.

Benchmarks by Level

Research reveals a stark divide in savings behaviour across the population. Only 46% of adults have three months of expenses saved, and just 27 – 28% have six or more months. The national savings rate sits between 3 – 5%, and the bottom 40% of earners have negative savings rates. These patterns mean that even modest, consistent saving behaviour places you well above population averages, and sustained high savings rates represent genuinely rare achievement.

Level 1: Awareness

Security: You know your monthly essential expenses and how many weeks of financial buffer you currently hold. i

Lifestyle: Know what proportion of your savings is instantly accessible versus locked away i

Growth: Know your current savings rate – what percentage of income you save each month i

Level 2: Foundation (80th percentile capability)

Security: You have 6 months of essential expenses saved in accessible accounts. i

Lifestyle: 80%+ of savings in instantly accessible accounts; can access GBP 5,000+ within 24 hours i

Growth: 15 – 20% savings rate sustained for 12+ months i

Level 3: Proficiency (95th percentile capability)

Security: You have 12 months of essential expenses saved in accessible accounts. i

Lifestyle: Tiered liquidity structure: instant access, 30-day notice, and longer-term; can access 3+ months of expenses within 48 hours i

Growth: 25 – 40% savings rate sustained for 3+ years, with 2 – 5x annual expenses saved i

Level 4: Excellence (99th percentile capability)

Security: You could maintain your essential lifestyle for 5 years with no earned income, drawing on all accessible assets (savings, investments, and realisable assets – excluding retirement accounts and primary residence). i

Lifestyle: Optimised liquidity ladder across multiple account types; can access 6+ months of expenses within 48 hours; remaining wealth accessible within 30 days i

Growth: 40 – 60% savings rate sustained, with 10x annual expenses saved i

Level 5: Mastery (99.9th percentile capability)

Security: You could maintain your essential lifestyle indefinitely with no earned income, from accessible invested assets alone (excluding retirement accounts and primary residence). i

Lifestyle: Full liquidity across all savings; can access 12+ months of expenses within 24 hours; no locked-in vehicles without deliberate strategic rationale i

Growth: 60%+ savings rate sustained for 5+ years, with 25x annual expenses saved – the full FI number i

Levels

Level 1: Awareness (under development)
Level 2: Foundation (under development)
Level 3: Proficiency (under development)
Level 4: Excellence (under development)
Level 5: Mastery (under development)

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