How to decide how much to spend and how much to save

The_Saver_2 · 17 August 2012 at 6:35AM

I expect some people who use MSE save as much as they can and spend as little as they can.

I'm possibly in the minority(?) but I try to balance the two so that I still have a good standard of living but am increasing my savings too. I don't want to be run over by a bus tomorrow and have loads of money saved but not have enjoyed any of it.

How do others decide how to balance the split between how much they spend and how much the save?

HappyMJ · 17 August 2012 at 6:42AM

The_Saver wrote: »

I expect some people who use MSE save as much as they can and spend as little as they can.

I'm possibly in the minority(?) but I try to balance the two so that I still have a good standard of living but am increasing my savings too. I don't want to be run over by a bus tomorrow and have loads of money saved but not have enjoyed any of it.

How do others decide how to balance the split between how much they spend and how much the save?

I save as much as possible by reducing bills to the best available deals so I can spend more on going out. You need to save as much as you need to maintain your lifestyle in retirement. The more you save the earlier you can retire and if you save nothing you will be made to work until you die and/or live on a minimum income such as a state pension.

gothrockchic1 · 26 August 2012 at 7:28PM

I am interested in this. I am in need of buying clothes etc but can't decide how to spend the spare cash I have after bills...

Wentthedaywell? · 2 September 2012 at 11:36AM

My rule of thumb with salary is 25% for each of spends, savings, mortgage and food/bills etc. It will vary month to month and I've been able to save a bit more as my mortgage has reduced overtime, but it's been a good guideline for me.