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

jimjames

paulineb wrote: »

You can save a certain amount tax free, Ive done this before with scottish friendly. 25 pounds over ten years. The money is tied up, you cant access it and you'll get a few thousand at the end, plus bonuses.

They have several plans to choose from.

Definitely one to avoid if you want to make money. Poor value, very inflexible and poor returns plus tax free is a complete irrelevance for most people who can afford £25 pm.

I'm lucky I can save 20% or so but I do have 2 jobs and fingers in many pies. We don't have new cars and are careful what we spend but also do enjoy travelling.

YoungBusinessman

doughnutmachine wrote: »

good guess, i work in a country very very close to there.

compared to my old salary in the UK i'm rolling in it and pay no tax on the minus side it's a bit dull and my social life is as poor as a monks.

ohhh well, i suppose a gold plated headstone will look nice

Stick it out a few years then head home to enjoy a greater life to work aspect as opposed to the way it is now?:cool:

lippy1923

I am currently saving about 36% of my take home pay, after tax and pension, bills etc.

However with my first little sprog on the way and me getting mat pay, I estimate this will change to -10%

mildredalien

37% of my income is spent on essentials (rent, utilities, running my car etc.)

Of the remainder, I currently save approximately 30% (split between an ISA, a regular saver and easy access online savings account). The rest goes on incidentals - clothes, medical stuff, emergency fund, pet costs, entertainment, mobile phone, eating out etc.

I don't actually have much in savings overall as this year I'm spending it as fast as I can save it on holidays! _party_ It's nice to know that I can put a chunk away each month though, at the end of this year hopefully it will start to go towards a house deposit and then to overpaying a mortgage, and eventually to bulking out my retirement savings...

Smudge321

Is there a link to a calculator to help me work out where my money goes?

bigadaj

Smudge321 wrote: »

Is there a link to a calculator to help me work out where my money goes?

You need to do a statement of affairs, if you onto the dent free board there are examples there.

innovate

http://www.stoozing.com/calculator/soa.php

nearlyrich

Maestro. wrote: »

Some people in this thread are incredibly lucky to be able to save as much as they do. (Over 50% of your income - what do you people do?)

I feel lucky but I have always worked hard and planned my future.

I work in sales, have a company car, house paid for and children independent so apart from bills, food and holidays I don't have much to spend my money on, I don't hold back if I want to spend I do...

I plan to stop working at 55 but I don't want to take my private pension too early so my savings will keep me between 55 and 66...;)

funscott

single
own flat
have car


30% on mortgage
25% on bills / food / fuel
10% pension
20% share investments (average ove months)
15% chocolate + beer etc

I class my share investments as a rainy day fund.

jamesd

More than 60% of net in salary sacrifice pension contributions before tax and NI. Total of around 90% of net once ISA is included. It's that high in part because so much is coming out gross.

Over the last 86 months from a zero start I've accumulated savings, investments and equity of 90% of my (gross pension contributions plus net pay) for the whole period, though that does include some investment growth.

Maestro. wrote: »

(Over 50% of your income - what do you people do?)

In my case I was used to living on not much more than benefit levels but now earn into the higher rate tax band. It's not hard for me to live on more than I used to but still relatively little. Choosing to live in an inexpensive area and to buy an inexpensive property helped. No children, no car, no smoking and not drinking much also helps.

To do the sort of level I do requires an income well above the basic living level, else much of your income will go on just the costs of living.

The book The Millionaire Next Door might be inspirational reading for some people. I don't rigidly follow the sort of thing it describes and didn't read it until fairly recently but did have becoming financially independent as an objective. Did have because I've fairly recently met that target, though without sufficient safety margin yet. My minimum target was being able to live as I do now without relying on benefits if I never worked again.

It's easier to reach that sort of target when you get closer to 55 and availability of pension income than in the twenties, thirties or early forties when ISAs are the way to go and you have to get to fully sustainable income rather than enough to last until pension income then until the state pensions start.