How much should I have in bank savings at my age?

Tayus

baldbloke wrote:

Premium Bonds are for dreamers (nice people really!)or for those who do not need income or increased value to come from their capital.

My excuse for buying these is that i dont play the lottery. Therefore this is my little gamble!

gingercordial

No "should" on this one, but I'm also 25 and here's where I am. I don't have a huge amount of savings at the moment, just over £1k (I have a lot more than that in the bank from stoozing but that's not mine so I won't include it). I have no debt apart from the obligatory student loan and even that's not too high compared to a lot of people!

I now save one third of my monthly salary as I do want to be in a position to at least consider buying a house (depending on the market) in about 3 years' time, so I want to build a deposit. I've been doing this for quite some time but then have always spent the money on travelling etc so it hasn't managed to mount up, but at least it's not all on credit. I'm not saying I won't do that again, as there are loads of places I still want to visit before I "settle down", but saving is becoming more of a priority these days. 3% of my salary goes into a pension.

Hope that helps!

K9cuddles

Well I'm 24 and in debt! So no mega saving as it's not an option at the moment!!

This time next year I will be debt free (apart from student loan and car finance (doesn't pay to pay early!!)). I've had a pension since 19 (that what happens when you work in a Life Office!!) but contributions have only been small. I currently pay 13% of my salary in to pension with employer contributions.

At the moment I save 6% of my salary (pension, Company Shares & ISA). This is actually only 2% of my earning as I do loads of OT (that what pays the bills!). I hope to be saving 75% of my earnings this time next year!! And sadly can't wait!!! I only have £300 liquid savings at the moment, I shouldn't have any as I'm in debt but I figure this covers one of my big potentional expense! Car excess in a event to of a claim!

I really don't think young people realise how important it is to save! I'm lucky I've learnt my lesson quiet early!! and very quickly!!

elizw

I love saving too - I have a dd for £20 each month to a high interest monthly savings account which I top up now and again -you dont miss it - (£5 a week can easily be spent in the corner shop on a magazine sweets and bottle of drink - so dont go in there) - also I like saving into a Unit Trust monthly it covers the highs and lows of the stock market - say another £20 - add to your savings as much as you cn from there on and remember never waste a penny on something you dont need and your money will accumulate ~(example - bottle of fabric conditioner each week with your weekly shop costing £1 adds up to £1040 over 20 years) - lastly dont fall into the credit card trap - it ruins peoples lives. you can always earn more but you can never replace what you have wasted.

talksalot81

I am the same age as you and have been on a postgrad stipend for a couple of years now. I will admit I have alot more in savings than you, but that is because I have stayed at home specifically with savings in mind.

The problem I see is that may savings will be going to zero almost instantly when I buy a house. I will need every last penny to get onto the market and it will leave nothing for a rainy day, nothing in a pension scheme, nothing anywhere!

I think that all this talk of 'savings' is moot until you get onto the property ladder with a mortgage under you.

Two9A

I've always tried to save at least 25% of my income, even if I go hungry some days. Of course, I earned a grand total of two thousand last year, so the saving wasn't substantial (and I had plenty of no-spend days). That said, I should be getting into gainful employment soon, and that'll help.

I like the idea of a DD into a high-interest monthly, so I'll have to look into that when I start to get salaried. As for the student loan mentioned further up-thread, I obtained a full-blown loan when I was at uni, but it went towards my brother's house: 15k for a terraced, bargain.

Any suggestions for starting/keeping the savings up, apart from a regular DD as mentioned?