How much should i be saving...

greenface

I started in the building game at your age (a while ago) my flat line earnings were not great but i made it last for the week/month and clear the bills. Anything i got over that (overtime,bonus,cash jobs,slummy etc) went to "enjoy" money and holidays,savings and anything we had left as a young dad was always put to improvement of our lives,

lotteblade

Thanks everyone...

I dont live at home either!! no debt just a loan to pay!!

gingeralan

lotteblade wrote: »

Thanks everyone...

I dont live at home either!! no debt just a loan to pay!!

A loan is debt!

Hooloovoo

lotteblade wrote: »

no debt just a loan to pay!!

!!!!!!?

(filler text)

lotteblade

well yes i know its a debt!! but i mean like no ddebt like credit cards etc!! i dont notice loan goes out as goes out same day as payday!

atush

Can you pay it off sooner? What is the % rate?

Not much point in saving 200/month at 3% when you are paying 7% or more on 1000s

gingeralan

lotteblade wrote: »

well yes i know its a debt!! but i mean like no ddebt like credit cards etc!! i dont notice loan goes out as goes out same day as payday!

With all due respect, I think this comment sums up the problem relationship this country has with debt. I am sure you can afford it, but still you must consider this in your financial position.

Tantalus86

a debt is a debt, regardless of when during the month it gets paid. Let me point you back to my equation again:

Income - Expenses = Savings.

A debt is expense, hence by getting rid of this you'll be increasing the amount you can save. Basic maths.

I can almost certainly guarentee that your loan will have a greater interest rate than what you could earn in interest by putting the money in the bank. That means that you'll be better off to pay off the loan first, then save the money. Have a read of this as it'll explain it better: [edit: turns out I can't add a link yet :mad:, but please go to the main site -> Cards/Loans -> Should I repay debts or save?]

Let me know if you have any questions and i'd be happy to help