We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
how much should i be saving (not including pension)
hewhoisnotintheknow
Posts: 3,162 Forumite
aged 26
live alone
earn 35
700 mortgage
250 a month bills
I do save, but i wanted to see how much yoyu guys think i should be
live alone
earn 35
700 mortgage
250 a month bills
I do save, but i wanted to see how much yoyu guys think i should be
0
Comments
-
Taking into account other expenses i would say anything around £400 to £500 would be good.0
-
you should aim to have 3-6mths net income as an emergency fund. After that I would stick it in your pension (tax releif is free money)0
-
Spend it !
That was the advice a nurse friend of mine gave me. She worked in A+E and saw the death of young and old alike from accidents.
One can never know what is around the next corner........ it might be the Grim Reaper looking for YOU. Spend, spend spend !! :eek: :eek:
horace0 -
Yeah, I'd say £400+ if your mortgage payment includes a repayment part already, or aim for quite a bit more if that's the interest element.Hurrah, now I have more thankings than postings, cheers everyone!0
-
I'm late twenties, co-habiting, similar income - saving £500/month BUT only because we have already overpaid our mortgage by the maximum we can for the next 12 mths
HTH"According to all known laws of aviation, there is no way that a bee should be able to fly. Its wings are too small to get its fat little body off the ground. The bee, of course, flies anyway. Because bees don't care what humans think is impossible" Bee Movie 20070 -
hewhoisnotintheknow wrote: »aged 26
live alone
earn 35
700 mortgage
250 a month bills
I do save, but i wanted to see how much yoyu guys think i should be
Have you read "The Millionaire Next Door"? There's a formula for how much wealth the average person with your age and income would have accumulated. Details here.
Basically: Average Wealth (not including home equity & inheritences) = 0.1 * Age * Income.
So for you it's: 0.1 * 26 * 35000 = £91,000.
If you have less than half this, then you're an UAW (under accumulator of wealth, get saving!). If you've double this, then you're a PAW (prodigious accumulator of wealth). In between and you're an AAW (average accumulator of wealth).0 -
is the formula based on net or gross income ?0
-
actually there are so many flaws in this formula
different tax rates
stable or growing income levels
age start working (straight from school, or university/PhD)0 -
Its a bit crap if you put all the money into your house if you don't include house equity :-|0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards