Saving 50%salary

drbraindead

lawriejones1 wrote: »

It won't necessarily work quite that simply I'm afraid, if it was, everyone would be doing it. Becoming a landlord carries with it numerous responsibilities and, the more properties you have, the more expensive it is to be a landlord.

Also, having all of your money tied up in assets like property makes it hard to access - what happens if you ever run into any problems in your life that you need money for?

My view would be to balance your risks and rewards, investing in property, pensions, stocks and shares and traditional, easy access cash accounts.

I see your point and i'm sure your right. I do hope to one day give it a try though.

I did labour work on a house for a guy who has 50 houses last year. the renovation work inspired me, that and watching homes under the hammer lol.

ViolaLass

livilove wrote: »

Thanks reaper for the sharing the insight. REIT is something I never knew before today and I had a look , it sounds much safer option. Govt bond , mayboot be as safe as I thought they were, I live in a paradise of day dreaming..
Gold bulions , still I find it attractive option and buying shares of oil gas.... May be yes too. What about Chinese companies shares, they are growing like so muchhhhhhhh. . .?

!! Where are you getting your investment ideas from? You seem to be jumping on all the bandwagons around 5 years late.

Just a thought, but your English does not appear to be fluent. Would improving it help you to get a better job?

racing_blue

I love the idea of saving 50% of income. Nice round figure. One pound for today, one pound for the pot.

However you can turn it around, planning to earn (after tax) at least double what you plan to spend.

Clearly this has the same mathematical effect, but helps you to focus on generating opportunities to lift your earning potential. You start with a plan for what you wish to spend this year, and then you build ways to earn at least 2x that.

livilove

6/10/12 to 6/11/13: savings 9k
Opened online business expenses: 1200- fixed cost plus stock
Profit £400/ month. Revenue 2400.
I have increased spending on my lifestyle with £200 extra to spend per month to reward myself and £200 I put in saving account. So if I want to live luxurious I need to increase resources, not to eat out savings. one job as a safety net is enough. I will concentrate on online business in my spare time and see how it goes.

jimjames

livilove wrote: »

I plan to retire in 20 years time by saving and investing in property, gold, oil, or reusable energy. I am not sure yet.

Be very careful basing your investments and retirement on such a limited range of options. Gold has not performed well recently and provides no income. It may be suitable for part of a portfolio but aiming to retire on it may not work out.

Wise_Investor_2

Poster is so thoughtful. I hope you achieve your goals!

Money_Saver_Jen

Just want to say I am impressed with livilove's ambitious plan! I read a financial book on a guy named John Templeton who became a billionaire using this strategy so I admire people who try. I used a similar idea to pay off my mortgage early. I could not save 50% as my fixed outgoing were 60% of my salary so I did it on 40%. It did work but it took a lot of living frugally and I only did it for about 4 years as towards the end it was making me miserable never having any treats. So my advice would be to budget some of this money for enjoying yourself along the way or it may become a long hard road and life can be short!! I wish you luck.

livilove

Wise_Investor wrote: »

Poster is so thoughtful. I hope you achieve your goals!

Thanx v much wise invested and all who shared their thoughts on this equation of saving 50% salary .
I learned along the way not to be ending scrimping or living so frugally that I don't enjoy life. So instead of not spending anything on the things I enjoy , I appreciate the advise and have set up a separate account for treats. Now after almost 3 years of living below means and saving 50% salary Here is the picture.
06/11/2012- 09/11-2013. Savings 9k
09/11/13- 17/01/2015 almost 14 months later -Savings grew to 18500 that I plan to use for a commercial property deposit.
Online business is going fine now going to expand with brick and mortar store .
No packed lunch no frugal living - but still well below means 50% of goes to saving but I was able to have holidays to Usa . Few Luxuries I was able to afford eg iPhone 6, a domestic cleaner and designer jacket. Still healthy cooking no ready meals , few take aways, no dinners cinema , but cheap socialising Meetup groups and few drinks .still no car but I use taxi or walk.
Plan is to reinvest back in business and not forgetting that living below means is the key . Any valuable suggestion r most welcome. Learned a lot along the way - community - thnx v much.

robatwork

Good job on updating your thread.

Do you work hugely long hours? I could never justify a domestic cleaner or come to that the latest iPhone - much more MSE to wait a year to buy any technology; once the next model comes out the previous one you covet is still the same spec, and half the price.....

One of the most annoying parts of living frugally is holidays - the fact that when you cost out a holiday in the UK it works out almost the same or more than a holiday abroad. And no, I don't like caravans.

Broken_Biscuits

looking over last years figures...

i saved 50% of my net salary 5 months of the year, which included october, November and december. January of this year looks likely too.

i don't earn a big wage and probably waste too much on booze and food. You have to be quite smart at times, coming up with alternative income streams or just being frugal/ money wise a large percent of the time. Monday to Thursday its quite easy to spend very little or nothing.

you could, as i have, take on a lodger for extra cash.
pension contributions will get you to 50% saved quicker with less actual money coming out of your end due to the tax saving.

if you have cash, filling both tsb accounts and taking advantage of the tesco/halifax trick will give some extra pocket money too.




i saved about 40% last year and compared to my peers have a very active social life. No spend days a few days a week can cancel out the overspending you do on the weekends.

if its not hammering down walking instead of driving / busing. Rent or buy somewhere that makes this possible. My advice would be if you are completely dependant on your car in your working life, move.

good look to anyone taking positive steps to sort their future out. Ignore the ones telling you that you are wasting your life. I have a good life and save what some would consider to be extreme.
all i would say is that if you are saving for near 20 years in the future make sure you are saving smartly. Compound interest is king. You could easily double your pot if you play the game right.


a lot of people on here talk about tim hales smarter investing. Its a very good read. Join your local library. I got it for free from there.

best wishes with your journey.