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  • FIRST POST
    • Cotta
    • By Cotta 3rd May 17, 9:48 AM
    • 2,364Posts
    • 959Thanks
    Cotta
    How Much do you Save?
    • #1
    • 3rd May 17, 9:48 AM
    How Much do you Save? 3rd May 17 at 9:48 AM
    Hi All,

    I'm always interested in how much people save and if there is indeed a specific amount? Do people set X amount aside each month or is it a case of setting aside what you can afford after everything else has been paid for?

    I've just started to save after four years of living payday to payday, at the moment I am saving £200 per month into a Regular saver account which pays 5%. This £200 represents around 10% of my net salary. On top of this I have £2000 in my current account which is essentially for emergencies.

    Interested in your thoughts.
    Last edited by Cotta; 05-07-2017 at 3:54 PM.
Page 5
    • elephantrosie
    • By elephantrosie 13th May 17, 1:18 PM
    • 329 Posts
    • 83 Thanks
    elephantrosie
    jamesd- I would expect more than 4% loss in market crashes really.
    but thank you very much for the replies. you are obviously very experienced in investment and I should learn from you.
    Getting bored of my 9 to 5 job.
  • jamesd
    You should expect 40-50% drop in a stock market crash. Including all of those the average return of the UK stock market has been about 5% plus inflation. 4% is a value often used for retirement income planning that takes account of crashes.
    • Fatbritabroad
    • By Fatbritabroad 13th May 17, 2:34 PM
    • 152 Posts
    • 67 Thanks
    Fatbritabroad
    ability to absorb risk is another big one.

    you have £20k "savings investments and pension fund", which includes your rainy day fund, and you cant really accept too much investment risk so you get terrible returns short medium and long term

    you have £1m "savings investments and pension fund", and you need it to fund your retirement in 10 years (modest £40k a year for millionaire), you can accept some risk, you get decent returns mid and long term

    You have £1b "savings investments and pension fund", you could lose 75% of it and still live a lavish lifestyle, you can invest in the riskiest brackets of long term investments which overall WILL make a killing long term.
    Originally posted by martinsurrey
    To say nothing of taking advantage of the 40% tax breaks and more disposable income to take advantage . That for me has been the best advantage of becoming a higher rate tax payer. Example I'm getting a 19k bonus in Jan next year and another 48k in 2020. I will likely not need either of these so will put the lot, (or at least 40k) in my pension avoiding any tax at all on this amount. There's simply no way I'd have been able to do this 5 years ago when I was earning 32k
    • dunroving
    • By dunroving 17th May 17, 7:36 AM
    • 437 Posts
    • 166 Thanks
    dunroving
    Hi All,

    I'm always interested in how much people save and if there is indeed a specific amount? Do people set X amount aside each month or is it a case of setting aside what you can afford after everything else has been paid for?

    I've just started to save after four years of living payday to payday, at the moment I am saving £200 per month into a Regular saver account which pays 5%. This £200 represents around 10% of my net salary. On top of this I have £3000 in my current account which is essentially for emergencies.

    Interested in your thoughts.
    Originally posted by Cotta
    I save every penny I don't spend, and I minimise how much I spend. Every month that means I put way over 50% of my income into either my ISA, my SIPP, my occupational defined benefits pension or my occupational MPAVC.

    I didn't start saving in earnest until I was 40 (most of my life before that I was either in a low-paying job, in full-time education, or in non-pensionable work overseas). I quickly realised I needed to get serious. Despite several setbacks since then (internet bubble, plummet of the dollar when I returned to the UK in 2006; lack of house price inflation in the US), I am now preparing to retire either in 5 months or in 17 months (I just turned 60 years of age).
    • enthusiasticsaver
    • By enthusiasticsaver 17th May 17, 8:10 AM
    • 3,692 Posts
    • 6,662 Thanks
    enthusiasticsaver
    When my husband and I were both working we saved a certain percentage each month plus whatever was left at the end of the month was left in our current account buffer. When that reached a certain point we transferred that into savings. Our aim in the early years was one months expenses in the current account buffer and three months in our emergency pot plus we had savings accounts for the car, house, holiday and Christmas and university for our daughters. Our long term savings were held in pensions (10% contribution as we wanted to retire early) and later on we added stocks and shares isas after the mortgage paid off. So some was saved long term, some short and medium term and spent annually.

    After we paid our mortgage off and had helped our daughters with university and house deposits we were aiming to save 50% of our income towards retirement so we knew we could live within our pensions. Now we are in a transitional stage with my husband retired, me working part time and a healthy investment pot and cash buffer and a total of 5 pension pots all paying out at different points over the next 8 years plus state pension in 7 years for my husband and 9 years for me. For the first time in a great many years we are now comfortable enough not to worry about saving on a regular basis. I do still record our income and expenditure to make sure we dont spend more than we have coming in unless we have a house project or big holiday which comes out of our savings account.

    You sound like you have made a great start. Think in terms of short term, medium term and long term savings.
    Last edited by enthusiasticsaver; 17-05-2017 at 8:17 AM.
    Debt and mortgage free and saving for early retirement
    • Tolkny
    • By Tolkny 17th May 17, 10:04 AM
    • 69 Posts
    • 6 Thanks
    Tolkny
    I actually SAVE nothing, it is more a case of hanging on to as much as I have got for as long as possible.

    I am untrusting of so called "financial products" as I have either been cheated too many times since I began actively saving on the advice of a trusted senior colleague, at the Clearing Bank (one of the top five) where I worked in 1965.

    My own judgement is flawed having in about 1990 split my family current account, then and still with Lloyd's Bank, by establishing a second account for my salary and household expenses with The Cooperative Bank - because they were a mutual. That worked out badly when it turned out that like the Mutual Assurance company, we had invested in against an endowment mortgage, they too were badly run and had trouble satisfying regulators.

    At some point we put some funds in ISA accounts for my wife and I with an overflow in (as always) a joint savings account with the same localish Building Society.

    The returns became ridiculously low, the Building Society offer different "products" from time to time. I ignore them all and just hope the Government protected amount of £70 or £80 thousand or whatever it is - (we have nowhere near £70k in total) stays safe.

    If we have a bit spare we pay it in, but most often draw it out again and feel just about protected by occupational pensions - of enough for most months - see us out and if need be we will cash in our house.

    Anything left can go to our children, meanwhile, recognising public services are under supported by the UK Government we support several charities with monthly payments of what feel significant amounts, that could be stopped, if we or our children hit financial stringency beyond the resources of our monthly income or savings.

    I hope I get some responses. I do not intend to waste time managing my money which is only of use because of what it can provide in our lifetimes.
    Andrew S Hatton
    • Abrielle
    • By Abrielle 17th May 17, 10:14 AM
    • 81 Posts
    • 25 Thanks
    Abrielle
    Generally, Give 10%, Save 10%, Live on 80%.
    At the moment, I do not have responsibility for most household bills so from my (reduced) state pension and small part-time job, I am able to save £250 per month in a regular savings account which pays 5% interest.
    • Teacher2
    • By Teacher2 17th May 17, 10:20 AM
    • 475 Posts
    • 2,407 Thanks
    Teacher2
    For a few years when first married my DH and I did not have anything left at the end of the month but we pooled all our money and, coming from one prudent and one very poor family, we had cautious financial habits so we had no debts either.

    One month we found we had a surplus and, of course, we saved it. Then we had payrises, and, having learnt to live on a lower sum we saved the payrises. Then we remortgaged from 14% to 8% and saved that. Then the building societies went public and paid bonuses and we saved those. My DH was made redundant and we paid down the mortgage and saved the sum we had reduced the mortgage by. A small inheritance was used as a deposit to buy a second property on our Virgin One current account mortgage as a retirement investement and we started to pay that down immediately.

    And so on.

    We are savers and I would hate to say what we have put away every month for fourteen years now as most people would be shocked. It's not nearly as much as the chap who posted above that he saved 80% of a hundred grand a year for a decade but we have two houses and had two (expensive) children.

    Great oaks from little acorns grow. There is a fundamantal difference between savers and spenders, I observe, but everyone would save if they could see how savings snowball.

    If you had told me this when I was twelve I'd not have believed you. We were so poor my mother had to buy exactly the same shopping in the same shop every week or she would have been short of the cash to pay for it. She scrabbled in the bottom of her handbag for pennies.

    So, the advice is, save what you can and then increase the amount every time you can afford it.
    • Tolkny
    • By Tolkny 17th May 17, 11:40 AM
    • 69 Posts
    • 6 Thanks
    Tolkny
    Response to Abrielle at 10.14
    Thanks for that - but save for what - a rainy day - emergency funds - or something in particular?

    I am very fortunate in that after some difficult years when mortgage rates were 12% or for a few hours 15% we got to retirement and paid of the mortgage & at last - after nearly always carrying credit card debt, at one time of up to several £thousands, paid it down with the lump sum of my pension.

    I do not get joy out of lavish spending but like to do what I want, when I want, which does not include expensive trips overseas as they seem environmentally irresponsible.

    So as long as I have enough to go about my day to day business & support several charities, I am happy enough.

    As my Nan said - you can't take it with you.

    I actually feel somewhat guilty at living without fear of debt - NOW - whereas so many fellow UK subjects live in penury or fear of penury, often due to the way the various commercial organisations market unnecessary stuff to them in unscrupulous ways and because employment protection has deteriorated a great deal since the age of Thatcher.

    I worked firstly in banking and then in criminal justice and know that for certain cleverer people than I are out to trick me, and that others are gullible enough to be their "runners" and take most of the risks that come from criminal convictions

    For me the final straw was when (after the endowment mortgage scandals with some mutual assurers involved) The Co-operative Group's bank (which goes back to The Rochdale Pioneers) effectively failed and was bought out by speculators.

    Why spend more than a few minutes a week settling up one's accounts - live is to be lived?
    - - - - - - - - - -
    P.S. I spent years rejecting payment protection insurance every-time from the 1980s onwards when I bought some necessary equipment on some sort of "never, never" arrangement that best suited me at the time because I rarely had the cash to lay out. I could see that day would come that the ripoffs would be exposed, but the financial regulators allowed it to go on!

    This week I had a automatic phone call about PIP reclaim again & my phone provider wants to charge me a fee (£0.79 a week) to block up to ten specific numbers & that is another Cooperative (The Phone Coop) so I need to pay to stop being ripped off, like a pay for cyber security - no thanks.
    Andrew S Hatton
  • jamesd
    hello everyone, for the last 2-3 months i am not able to save much money , can u guys help me on how to maintain my saving.
    Originally posted by aaravmali22
    Try the old-style moneysaving or budgeting and bank accounts sections for tips. Debt-free wannabe also has lots of interesting discussion after people post their statement of affairs (SOA).
    • elephantrosie
    • By elephantrosie 18th May 17, 1:22 AM
    • 329 Posts
    • 83 Thanks
    elephantrosie
    i personally think it is more important to get out of debts 100% before you start saving. especially when we have good old NHS in the UK, you dont essentially need savings for healthcare.
    Getting bored of my 9 to 5 job.
    • carryheather
    • By carryheather 18th May 17, 5:57 AM
    • 3 Posts
    • 2 Thanks
    carryheather
    According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.
    • getmore4less
    • By getmore4less 18th May 17, 8:23 AM
    • 29,175 Posts
    • 17,456 Thanks
    getmore4less
    A far better rule is the thirds (or quarters if you have kids)

    buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

    with kids that becomes 1/4 as you need 1/4 for the kids.
    • Dird
    • By Dird 18th May 17, 9:27 AM
    • 2,589 Posts
    • 1,535 Thanks
    Dird
    Generally, Give 10%, Save 10%, Live on 80%.
    Originally posted by Abrielle
    Dave Ramsey alert
    Mortgage (Nov 15): £79,950 | Cashback sites: £835 | Current accounts: 15
    Mortgage (May 17): £75,264 | £30k in 2016: £30,300 (101%) | £25k in 2017: £9,931 (39.7%)
    • Cotta
    • By Cotta 18th May 17, 9:44 AM
    • 2,364 Posts
    • 959 Thanks
    Cotta
    A far better rule is the thirds (or quarters if you have kids)

    buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

    with kids that becomes 1/4 as you need 1/4 for the kids.
    Originally posted by getmore4less
    Is that 1/3 including rent/mortgage and the second 1/3 on essential spends such as food etc?
    • Tolkny
    • By Tolkny 18th May 17, 9:48 AM
    • 69 Posts
    • 6 Thanks
    Tolkny
    What has that "Dave Ramsey alert" got to do with anything in this thread please?
    Last edited by Tolkny; 18-05-2017 at 9:50 AM. Reason: To clarify
    Andrew S Hatton
    • Dird
    • By Dird 18th May 17, 11:33 AM
    • 2,589 Posts
    • 1,535 Thanks
    Dird
    What has that "Dave Ramsey alert" got to do with anything in this thread please?
    Originally posted by Tolkny
    He always says give a little, spend a little, save a little...as did Abrielle
    Mortgage (Nov 15): £79,950 | Cashback sites: £835 | Current accounts: 15
    Mortgage (May 17): £75,264 | £30k in 2016: £30,300 (101%) | £25k in 2017: £9,931 (39.7%)
    • Eco Miser
    • By Eco Miser 18th May 17, 11:45 AM
    • 2,896 Posts
    • 2,683 Thanks
    Eco Miser
    According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.
    Originally posted by carryheather
    I wouldn't want to reserve anything for essentials - those costs should be minimised, not ring-fenced. You spend what you have to and save the rest (or splurge a little bit).
    Eco Miser
    Saving money for well over half a century
    • harriet_whit
    • By harriet_whit 18th May 17, 11:47 AM
    • 4 Posts
    • 0 Thanks
    harriet_whit
    I am rubbish at saving, simply because I spend too much eating out or buying unnecessary items, I found an app called ontrees created by the money supermarket people on there you can set budgets and it links all to your bank and credit cards so fingers crossed I can start saving.


    I have also just started saying with the moneybox app to start getting into the stocks and shares game
    • cashbackproblems
    • By cashbackproblems 18th May 17, 12:26 PM
    • 1,675 Posts
    • 640 Thanks
    cashbackproblems
    I hardly save cash these days beyond a few months buffer as i have faith in my fund and share allocations. Even after my mortgage im able to save £750 in funds £250 cash
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