What percentage of your net monthly income do you save each month?

concrete_kid

I was inspired after seeing a question about what percentage people spend on their rent mortgage each month. I always find it interesting to see what other people are doing (I'm nosy)

I was wondering what other people save each month after tax, I'm saving for an emergency fund, deposit and a holiday and I'm saving about 20% of my take home pay (I've only just started and I should be saving more really).

What percent are other people saving and what are you saving for?

Dragonista

Personally I save:
>23% (investments as the highest savings rate where I am overseas is 0.3%, nor do I get an ISA allowance... we'll see what happens)
>5%-10% for rainy days and holiday (having to dip into quite a healthy fund to pay off my overdraft, that's fine just need to re-accrue that money)
(> my rent/bills contribution works out at 33%)

One the rainy day fund is built up and I get the pay rise my boss has promised me this year, I will be saving for property

My partner saves 14% for his pension but earns more than double what I do. Then he saves what he can here and there - I'm in the process of trying to get him to budget! Money seems to burn a hole in his pocket!

Any

At the moment I save a lot. More then I ever did before. But that is because part of that is to be put against my old credit card balance (currently on 0%).
I put away 20% of my net pay right now. It used to be a bit higher % before latest increase in tax free personal allowance and inflation payrise.
But 9% of that is going to stop next month as my First Direct 8% saver ends and the monies are going to pay off more then 1/2 of my credit card balance. I am thinking of transfering the rest of the balance again to new 0% and opening the First Direct 6% saver..

The other savings are going 75% to S&S ISA (funds) and 25% cash ISA (rainy day fund).

Oh and I have a pension. 4% salary sacrifice (employer gives double). But I don't really count that as I've never even seen the money on my pay and I won't be able to touch them for another 30 years:-) Though I am well aware of how much there is and how it is performing.

evenasus

What percentage of your net monthly income do you save each month?

Just had a look on Quicken. It reads ... 53.24% for the last 12 months.

Credit-Crunched

23% - Bills
8% - Share Save
9% - Pension + 18% employer contribution ! I know!!
3% - Company Share Purchase
20% - LIving costs
37% - Across various deposit accounts / AIM shares / and high risk Unit Trusts / OEIC's

richbeth

this varies as wife is self employed but in a good period
pensions 18% (this is payment leaving bank rather than gross into pension)
ISA & other 27%
so total ca 45%

we also overpay the mortgage by ca 4% as we have an offset arrangement.

As we have got older the percentage has increased significantly as the mortgage payment becomes a smaller proportion of our outgoings.

R

leromancer

oh god but how do you manage that???? I feel like bursting into tears! We struggle so much we can hardly save anything and I try believe me I have £3000 in cash ISA (and it took me years to gather that!!) and £500 in my HSBC crap saving rate account. I can't save every month a set amount. I'm self-employed, paid income tax for the first time this year. I work 6 days a week as a tutor but although my income has steadily increased over the past 6 years I have 2 young children who still need me around for nursery and primary pick ups. So can't go back to a fulltime paid job. Husband earns £30. We barely make it even. How do u manage to save sooooooo much???? Where do u find the money???? I want to cry, I would need a 2d job but I'm already sooooo tired I'm completely depressed reading that

evenasus

leromancer wrote: »

oh god but how do you manage that???? I feel like bursting into tears! We struggle so much we can hardly save anything(

I/we are retired now, so it's much easier to save than when we were young newly weds. Then the following year, the we had first of our two children.
Paying the mortgage and basic living took every penny we had. It does get better though.

Are you paying for anything you don't really need? Sky TV/mobile phone contracts etc?

deeboy1

As much as possible, now I'm fortunate to be one month mortgage free, woo hoo!

From net salary, now saving the following:

• 19% a month into regular savings accounts (cash)
• 9% a month into S&S ISA (mix of ITs, OEICs, trackers)
• 28% a month into non-ISA ITs, OEICs, trackers, REITs

And from gross salary, 10% goes into pension (plus 15% employer contribution).

Appreciate that's a lot and not possible for everyone...

But what it does demonstrate is the value of paying off the mortgage as early as possible through regular overpayments and lump sums whenever possible from bonus etc.

This really reduces the monthly outgoings and means living expenses plummet so that would be my tip for anyone who is able to overpay.

It's also a great feeling to know the place I own is really mine and not the bank's LOL.

So that would be my top tip, personally speaking. In my case, I'm 42 and paid off the mortgage (admittedly on a modest London property) in under 9 years through dogged persistence.

Now I've met that goal the next one is saving for early retirement and I'm on my new mission!

deeboy :cool:

IronWolf

I save about 30%, and spend maybe 40% on rent

leromancer

evenasus wrote: »

I/we are retired now, so it's much easier to save than when we were young newly weds. Then the following year, the we had first of our two children.
Paying the mortgage and basic living took every penny we had. It does get better though.

Are you paying for anything you don't really need? Sky TV/mobile phone contracts etc?

My husband won't part from sky tv (no comment I had no TV back in the days when I was single!!), I pay £12 for a Samsung S2 (don't care about the latest model but I need access to the internet/emails all the time to stay in touch with my clients). Basically I've worked out the cheapest deals on all our bills. But we still spend more than we earn (not much more granted and we always fall back on our feet and we have no loans nor credit cards nor debts of any kind) . It's 10 PM and hubby still at work doing overtime (since 8 this morning so we really try hard but I should get a 2d income somehow to get an extra £600 a month or so in. Just don't quite know how or when to do that (

My problem (well if it is one lol) is that I'm French so every year over the summer I have to go back home with my kids so my family can see the kids (I understand but it's very very costly and gets us in debts each time!!). I'm sure I can try to diminish our food bill more. That has become a big expense especially since my growing little boy has a growing appetite I wish I could eat like that without putting kilos on