How much should I have saved by 25 and when I am 28

masonic

The easiest way to pass the AAW test is to really suck at salary negotiation.

redpin_2

im a bit on the extreme scale
aged 20, living with my parents rent/bill free. im saving £250 out of £305 pw, and have accumulated £18.4k since starting work late 2008. which leaves me with £50 i spend on driving lessons, haircut, breakfast at work and travel. im trying to save as much money as i can to reach my goal of 100k as soon as i can; preferebly by time im aged 26.
for occasions like xmas and birthdays aswell as nights outs, im usually able to get overtime to pay for it so i dont have to eat into my £250pw savings
once i've reached that target i'll start spending my money, and let the interest from the savings top it up

Ron2256

redpin wrote: »

im a bit on the extreme scale
aged 20, living with my parents rent/bill free. im saving £250 out of £305 pw, and have accumulated £18.4k since starting work late 2008. which leaves me with £50 i spend on driving lessons, haircut, breakfast at work and travel. im trying to save as much money as i can to reach my goal of 100k as soon as i can; preferebly by time im aged 26.
for occasions like xmas and birthdays aswell as nights outs, im usually able to get overtime to pay for it so i dont have to eat into my £250pw savings
once i've reached that target i'll start spending my money, and let the interest from the savings top it up

Why 100k though?
The reason I am saving is because i have a goal for my saving. ie buying a house.
Are you saving because you want to have 100k in the bank?

redpin_2

I'd wait it out until i found something i liked i.e. this

jon3001

redpin wrote: »

I'd wait it out until i found something i liked i.e. this

I can understand renting somewhere like that (a studio flat). But would you expect to live somewhere like that long enough to justify buying it?

redpin_2

Gotcha. really i just want something of my own, hence i was looking at studio flats. i just dont feel one bedroom flats in the area i'm looking at offer good value for money; £150k for either very short lease or 11th floor on an ex council estate and there's no chance i'd be able to buy a house

Californication

jon3001 wrote: »

The "equation" is a statistical fit on real data. In what way is it a myth?

Unfortunately the book doesn't give the regression that they estimated or the R^2, so it may fit the data but very poorly for most people.

http://en.wikipedia.org/wiki/Coefficient_of_determination

--C

Primrose

I would have been embarrased to admit that I was still living with my parents at 25 and not paying them anything for my board and lodging. Having funded you all the years you've been growing up, surely they're now entitled to think they can start saving for their own retirement now you're earning?

As to how much you should be saving after that, I think the answer is 'as much as possible' if you ever hope to get married and have a home of your own. It will be difficult on a fairly low salary but you certainly shouldn't believe the people on here who try to lead you to believe that you can't have an enjoyable life without spending lots of money. If you're keen enough to save, you can buy some of your clothes from charity shops, learn to cook so that when you are living on your own you know how to shop and eat economically, and take up some hobbies that don't involve spending lots of money. The people who rely on money to make them happy have a pretty miserable time of it when they don't have any.

ninky_2

Primrose wrote: »

I would have been embarrased to admit that I was still living with my parents at 25 and not paying them anything for my board and lodging. Having funded you all the years you've been growing up, surely they're now entitled to think they can start saving for their own retirement now you're earning?

.

a little bit judgmental. maybe some parents want to help in this way. they might not be able to help out with a lump sum for a deposit but by letting their offspring live under their roof they are helping them acquire a roof. also, by not helping out with deposit, it might mean that money can go towards their retirement. maybe some people like their kids living with them after they are grown. in many cultures it is the norm. i personally couldn't wait to move out but i wasn't happy living at home for various reasons.

scott_lithgows

You should save £0 by age 25 as you should have spent it all on holidays and enjoying your youth!(perhaps £1k for a rainy day)
By age 28 you should have your own place but have no more than 6k as it affects your benefits if you start a family.