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How much of my income should I save?

The 50/30/20 approach

The 50/30/20 approach to saving is one of the most commonly used tactics. Basically, 50% of your spending should go towards needs (rent, food, bills, etc.), 30% towards wants (entertainment, travel, dining out), and 20% towards savings. 

So how does this work in practice? Say you make $4500 per month after tax—your resulting split would be:

Needs
Wants
Savings
$2,250
$1,350
$900

How strict is this?

Not at all! Some people may want to swap these numbers around if they're more concerned with saving and not as bothered with wants.

This could mean a 50/20/30 make-up where you spend a month saving extra and alternating back to 50/30/20 the following month.

By moving the numbers around to a 50/20/30, your $4500 a month split would look like this:

Needs
Wants
Savings
$2,250
$900
$1,350

How can you supercharge your savings?

After you’ve figured out the split that makes sense for your situation, knowing where to direct your savings is the next step. This is mostly dependent on your financial goals.

If you’re looking to save over the short term, then a high-interest savings account with a good introductory rate account could be the most helpful. These accounts offer some pretty high rates for 3 to 6 months. A shorter term deposit could also be advantageous. 

Alternatively, if you’ve got a long term goal, a ‘conditional’ bonus rate savings account could be a good option. By fulfilling certain conditions—like regular monthly deposits or no withdrawals—you’ll get a higher bonus rate. It’s important to note that, should you fail to meet these conditions, then you’ll revert to a lower base rate.  

Comparing savings accounts

Knowing whether or not the savings account you’re aiming for has an above-average rate can be difficult. That’s why the team at Mozo have crunched the numbers and found the average rates for the 203 savings accounts we track.

  • All Ongoing: 3.55%
  • Only Bonus: 4.64%
  • Only Introductory Rates: 5.09%
  • Only Unconditional Rates: 1.35%

* Personal account of $10,000, correct as of 24 January 2024

Want to compare savings accounts? You can check out one of our savings account hub pages or, if you prefer, check out some of the providers in the table below… 

Savings account comparisons on Mozo - last updated 17 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

    Compare
    Details
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

    Compare
    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

    Compare
    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Cameron Thomson
Cameron Thomson
RG146
Money writer

Cameron has a Bachelor of Creative Writing and History, and a background in broadcast media from his time at 2SER Radio. This diverse set of skills has informed his analytical yet creative approach to dissecting financial data and uncovering long-term trends in consumer finance. Cameron is RG146 certified for Generic Knowledge and keeps a keen eye on current and historical deposit and savings rates on the Mozo database. Cameron is also interested in tracking the investment space, particularly share trading platforms, to help Aussie consumers save and invest their money more wisely.