is it 10% of gross or net income for savings

andrinaperry

Help, I am a bit confused should I be saving 10% of my net or my gross income, currently going with the net but wonder if this is a cop out!!

Jonbvn

You have a mortgage at 9.9%????

Don't even think about saving (IMHO).

andrinaperry

thank you for your positive feedback

agsnu

Although technically you might be "better off" throwing all of your money into your mortgage, you might be better advised to ensure you have built up an emergency fund of at least 6 months' (preferably 1 year) of your monthly expenditure. That way, should anything unexpected happen and you have to stop working for a while (e.g. you lose your job, your employer goes bust, unexpected health/personal reasons, whatever) you will not immediately be on the brink of financial ruin.

andrinaperry

My thought on this contrary to comments already made, is that if we form the habit of saving even if those savings then goes towards debt repayment we will be developing a healthy financial behaviour, we are also trying to build that fall back fund for the future.

Andrina