How much should i be saving...

lotteblade

I earn about 900 a month.

Essential out goings of about 510 a month

before any holidays, meals out etc.

is a good amount of to save £200 bear in mind i am wanting to but in another bank £90 a month for a holiday!

or would you try and save more?

it then leaves me with 100 to myself each month?

Thanks:j

JoeCrystal

Well, the common rule of thumb is keeping six month of your expense/income as emergency fund just in case your lose your job or any other emergency. That could be between £3,000 to £6,000.

I would at least save into my cash ISA so I would not have to pay any taxes on it. I myself maintain a year worth of salary of Emergency fund as I felt it will take me long time to find another job.

Another thing to bear in mind while saving, do you also pay into a pension scheme? Saving for short term is one thing but you need to consider the long term as well.

Cheers

Joe

Tantalus86

Income - Expenses = Savings

Try to cut down expenditure as much as you can to maximise on the amount you can invest elsewhere.

tight_is_right

I would say it depends a lot on how old you are and what your prospects for the future are.

£900 a month isn't a lot of money so it's going to be slow progress once you've paid for everything else. If you're just out of school/uni and expect to be earning considerably more in the next few years then I'd not worry too much right now, so long as you're within your means. On the other hand, if you're a bit further on in life or if £900 is around the top end for your skill set then you should be keeping a keen eye on what you spend, cutting down where possible and building up some savings.

lotteblade

I don't pay into a pension scheme yet.. Will be lookin into it this week at work.

I'm only 20 so still youngish, and I'll hopefully only be on this for a yet to year and half then be looking for a progression.

I guess it's a short term saving as when I make a progression where ever it maybe I want a mortgage ( I know I wouldn't get one now).

Is 200 good then as I do go away and dot have to worry about money much.

Thanks
Charlotte

Hooloovoo

Tantalus86 wrote: »

Income - Expenses = Savings

Try to cut down expenditure as much as you can to maximise on the amount you can invest elsewhere.

^ This.

I've never understood the alternative form of the equation:

Income - Expenses - Savings = Money to blow randomly.

Whatever I have left over at the end of the month is savings. I suppose if you're the kind of person who never has any money left over and never knows where it has gone then the second form of the equation would work better.

Lokolo

If you live at home and don't pay any board, then £200 isn't enough.

If you rent on your own in London though, then £200 out of £900 a month is a brilliant achievement.

bluebird

why don't you see what you got left at the end of the month and put that away for savings.
I agree with the poster who said ISA as this is a TAX FREE way to save.

VT82

Hooloovoo wrote: »

^ This.

I've never understood the alternative form of the equation:

Income - Expenses - Savings = Money to blow randomly.

Whatever I have left over at the end of the month is savings. I suppose if you're the kind of person who never has any money left over and never knows where it has gone then the second form of the equation would work better.

^ This
(love it)

lippy1923

£200 a month is a good start, if your not saving anything currently. Pop it in a cash isa with a decent rate- most are over 3% if you look around.

Once you have sorted out a pension which you know what you can confortably afford to put into each month, draw up a budget and start cutting back where you can. Mobile, eating out etc- get 2 for 1 vouchers on a night out etc.

Once you have some figures, set aside as much as you can realistically afford to, after all outgoings have gone out.
Then aim to put that away each month. Pay yourself first! dont leave it until the end as its tempting to dip into it if its there.

atush

I agree that 200 a month (plus 90 for your well earned holiday) is great going at just 900 per month. Keep this up as long as you can afford it, but if you hve to save less because you've joined a work pension scheme that is OK. As long as you are saving, and not going into debt.

Of course, if you had any debt, you would pay this off before starting a subtantial savings pot.