Saving 50%salary
Comments
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:beer:
Well done!
I'm also on a BIG savings mission, not quite 50% of my salary, but around 30% take home pay, without fail plus if there is anything left over at the end of the month, then I do a 'sweep' to savings. I'm hoping to retire early in just under 6 years time, using my savings to bridge the gap to pension but hopefully actually get a part-time job in a different field once retired, so I don't have to touch savings immediately. We'll see, it's an ambitious target but so far I'm on track savings wise. However, there is a potential spanner in the works called Brexit which may mean our company moving out of UK and that may facilitate even earlier 'retirement'. Whatever happens, it's good to know that I have at least some kind of safety net to keep me going for a bit and considering my options.0 -
Rightly said
1) earning money
2)saving money
Part of saved money can be used for high risk more profit venture or spending on personal growth or further training.
using part of the saved money( as much you are comfortable with ) to empower yourself by reinvesting in high profit but risky investment. Personal growth etc. This worked for me so far, every time i make some profit keeping half of it aside and the rest reinvesting to create spiral upward shift.
Yes spending wisely is the key- I used to be a loon ( I still am but not to that extent) I spent unnecessary, matching the lifestyle exactly as my salary - meant I had nothing saved despite 16 years of actively working. I was just managing the bills and that's it. Recession hit me the worse after I lost job and found I had my little savings went out of drain and I was left with debt.
Then with my meagre job I learned to save and use the part of saved money to reinvest or do whatever I always wanted to do.
800/ month x 1 year= 9600k
X 4 years = £38200
Part saved for deposit toward commercial property
Part invested into high risk venture
Commercial property yielding a rental more than the mortgage instalment. Tennant paying the mortgage off - the extra to be reinvested.
Venture producing some money being reinvested back into it growing it to a larger scale
Saving isa part of salary for emergencies
savings empowered me to spend on the right thing.
Thanks to you- Money saving community- I could share my goals with you that kept me on the right track, so I did not go to extreme of one or other and did not quit after feeling it's unachievable. Listening to others who felt same way gave me sense of commeradery I was not alone and things can be achieved.
One year later this and 5 years later after the pledge
Picture could have been 800/month for 5 years =£48,000
Since I reinvested some in high risk the picture is like this
Commercial Property:60,000
Savings :10,000
Value venture 1: 12,000
Reinvestment 15,000 in staff/ stock of venture 2.
The idea is I either invest in kids clothing /toys or women clothing.
Or both. Make a website and also hire staff to sell products in trade shows stalls and shop.
If I go both ways I won't be successful,so to start with easy thing, I plan to sell kids cloths .
First trial limit = 5k
If successful then further 10k.
If failed then no further investment- rather calling it is a loss and move to women clothing and try that side.
If both failed total loss 10k. I will move on.
If kids clothing successful 5k will produce 5k profit, further investment of 10kwill produce 10k- total investment 15k total profit 15k.
Deadline to start
Nov 17
I will share on this platform what worked. If failed will share why It failed.
Anyone having experience of children cloths /toys please share your wisdom.0 -
Wow 30% savings every month is Pretty good. I can feel the joy of having safety net. well done , for being wise - retiring early and having time to yourself and bridging it to the pension is fab.:beer:
Well done!
I'm also on a BIG savings mission, not quite 50% of my salary, but around 30% take home pay, without fail plus if there is anything left over at the end of the month, then I do a 'sweep' to savings. I'm hoping to retire early in just under 6 years time, using my savings to bridge the gap to pension but hopefully actually get a part-time job in a different field once retired, so I don't have to touch savings immediately. We'll see, it's an ambitious target but so far I'm on track savings wise. However, there is a potential spanner in the works called Brexit which may mean our company moving out of UK and that may facilitate even earlier 'retirement'. Whatever happens, it's good to know that I have at least some kind of safety net to keep me going for a bit and considering my options.
Please keep posted how r you doing if brexit happens.0 -
Congrats on making it to the 5 year point. I see that others have already previously pointed out you ought instead to focus on increasing income rather than all efforts on cutting expenses.
Here's my personal networth tracking chart for the past 3 years. Back at the start of 2016 was when I switched focus from cutting expenses to building income.
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Congrats on making it to the 5 year point. I see that others have already previously pointed out you ought instead to focus on increasing income rather than all efforts on cutting expenses.
Here's my personal networth tracking chart for the past 3 years. Back at the start of 2016 was when I switched focus from cutting expenses to building income.
Wow that's amazing in such a short time. Did you invest in property? How did u achieve this ?0 -
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Finally 7 years later
Saving 50% of my income
If salary stays the same it would have been £63,000 savings. Salary kept increasing with time so with current salary it could be around £70,000.
Finally, I am no more extravagant, I got a habit and momentum of saving.
The picture of finances has not changed much- instead of
Venture 1 and venture 2
I changed my mind and did not follow up on that.
Now I am comfortable spending bit more money than before as quality of life and standard of life is better.
Refocusing on saving and making money work harder.0 -
With bills mortgage kids and other liabilities...there was a shift of numbers 50% saving target has gone down to 05% as this is what’s left after spending- Kids are expensive! I am glad I worked hard and saved as much as I could before I started a family.
My situation is different now and hence this is the end of my Pledge.
Thanks everyone x for your companionship through your words and thoughts in this long but enlightened journey.0
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