What savings should I have?

Sunshine22_2

Hi all

I have been reading a lot about the average savings by age etc, and there seems to be no consistency in reports! It's a bit nosy, but for those willing to share, I wonder how much people save a month and overall savings / worth?

For instance, I am on a tight income but save at least £100 / month. plus anything from overtime, presents, anything left from the sink fund at the end of the month. I also have a pension payment in place (to a public service pension) and am paying my student loan. I currently have £7k in savings, aged 28. I seem to have a lot of savings compared to my friends, but reading these boards I don't compare well!!

Sx

DireEmblem

Hi there,

I think the general rule of thumb on this board is to have a 6 month emergency fund - so your 7k is probably more than enough to cover that so well done!

From my experience(29yo), you are correct - most people I know 'live within their means', or have a lot of CC debt. Now the first part is not so bad, but just because something is there, doesnt mean you have to use it. Like yourself I have started to syphon off some of my pay each month. You get to the point that 'if you never have it, you will never miss it', and get used to what is left.

I think your real question should be - what are your goals? Do you struggle at present saving £100 a month, and what would you spend that on if it was in your pocket - is that worth it? Or B, would you consider getting your own flat - and then what sort of deposit would you need?

badtzmaru

Hiya,

I am 27 but turning 28 this year and have saved up £16,050 so far. I have debt to pay off (well, family debt) and should be payed off by the end of this year. My income varies from £120-£300 per week depending on business. My income should double after we payed off debt at the end of this year. I still live with my parents but I hope to save up enough for a deposit and a car in a few more years time.

Drp8713

I think it completely depends on your situation.

You could be 28, a single parent with 3 kids and a low income, in which case just not being in debt would be a victory.

You could be 28, married, no kids, both with a decent income, inherited a house or money from parents and then should have a few quid tucked away.

As long as you are happy with your savings and investments, and add to them where you can to ensure you meet your goals, whilst keeping out of debt (except for a mortgage) then just do what you can.

Buzzybee90

Sunshine22 wrote: »

Hi all

I have been reading a lot about the average savings by age etc, and there seems to be no consistency in reports! It's a bit nosy, but for those willing to share, I wonder how much people save a month and overall savings / worth?

For instance, I am on a tight income but save at least £100 / month. plus anything from overtime, presents, anything left from the sink fund at the end of the month. I also have a pension payment in place (to a public service pension) and am paying my student loan. I currently have £7k in savings, aged 28. I seem to have a lot of savings compared to my friends, but reading these boards I don't compare well!!

Sx

I think it depends on whether or not you own a house/ good car, things that would have taken a good chunk of savings.

System

As much as possible, preferably inherited.

I_have_spoken

One you can live off the interest from your interest, you know you're OK

anoncol

Buzzybee90 wrote: »

I think it depends on whether or not you own a house/ good car, things that would have taken a good chunk of savings.

Indeed. Savings are there for two things in my mind. Security and for big purchases. So house and car mainly. By house includes getting new kitchens/bathrooms etc, which a lot of ours has gone on the last 2 years.

We always buy our cars outright, so never use loans. It makes it much easier to control outgoings, instead of paying for the car loan we are saving for a new car down the line.

Buzzybee90

anoncol wrote: »

Indeed. Savings are there for two things in my mind. Security and for big purchases. So house and car mainly. By house includes getting new kitchens/bathrooms etc, which a lot of ours has gone on the last 2 years.

We always buy our cars outright, so never use loans. It makes it much easier to control outgoings, instead of paying for the car loan we are saving for a new car down the line.

Yeah me too, I'm quite young and my other half and I just bought a car which was quite expensive. If we hadn't bought the car then we'd have had enough money for a deposit (but not enough for fees, moving etc) but now we are back again but with an investment.

Yeah I think people save for specific things (firstly car and house) then home improvements then it sort of gets to a point where you can save more for leisure (as well as emergency fund etc).

killerpeaty

I'm 24, living at home and been in work for about 20 months. I have 12K (plus a bit) and then 4K (plus a bit) in a S&S ISA. But I have no other assets. In addition, I have also paid for some courses to improve my skills and hopefully employability, this would have an additional 2K to my savings.

I like to save around 75% of my salary as I will never be this rich again as soon I will need to pay actual bills. But I never feel deprived, I still socialise a fair amount.

IGetMoney

I find myself asking the same question to myself on a regular basis.

I've just turned 28, have just over £40,000 in savings (well split between high interest current accounts and S&S ISA's). Been paying my mortgage for over 5 years, through overpayments I've brought that down to 13 years remaining in that time and built extra equity by buying at the depth of the recession.

I don't have dependants, go on holiday when I want, but am generally looking after the £'s so the thousands look after themselves.

I would class myself as earning an average wage, just over £30,000p/a