How much do you save a month?

NewKidOnTheBlock_2

Perhaps I should have said what percentage do people save because then it's all relative. Thanks for your replies so far, I was thinking £300 a month is way below average but I guess not.

Although I don't have a mortgage, car, wife or kids or anything so I guess that's why I can save £300 on just an £8 an hour job.

TheThirteenth

I've recently started trying to follow the 50/30/20 rule, where 50% of your net income is spent on necessities (housing, food, etc), 30% on frivolities, and 20% is saved. It's probably a better idea to compare savings as a % of income, rather than as an absolute number

Zippeh

TheThirteenth wrote: »

I've recently started trying to follow the 50/30/20 rule, where 50% of your net income is spent on necessities (housing, food, etc), 30% on frivolities, and 20% is saved. It's probably a better idea to compare savings as a % of income, rather than as an absolute number

True, but the 50/30/20 rule will vary according to an individuals circumstances. I'd say that 30% each month on frivolities is quite a lot! Although it does depend on how you define a frivolity!

Like I said, work out your basic spending weekly, monthly and annually. Then aim to save what is left over each month. It's an excellent way to get a target.

I'd attach my spreadsheet as an example, but it won't let me here.

Newbie19719802

I'm currently saving for a deposit so I try to save 50% of my wages each month. Currently living at home rent free, but at least this way when I do get a place I'll be used to having a large chunk come out if my bank as soon as I'm paid.
I always followed warren buffets quote , "spend what is left after saving, don't save what is left after spending"

Pinner_Ram

To RB #7 - No sympathy for your predicament I'm afraid.


;-)

ikorodu

As a family we don't have a target that we aim to save, but we move any unspent cash into savings at the end of the month. Like others have said it varies month by month, but I'm trying to even out expenditure by using DD for most things (TV Licence, GAs, Elec, Phone, Council Tax etc). We have set up a 123 Santander Current account as the bills account and worked out how much on average we need to pay per month. This has worked well as it shows us early in the month how much we have left for other things like food or trips out. and you get the cash back, which is nice.

We are managing to save around 20% of income.

pollyanna24

I have monthly spreadsheets (currently have done them up to the end of the year) as I get paid different amounts each month - due to when my boss puts the pay in and whether I have done any overtime.

My savings vary, but last month I saved £725.92. This month, I intend to save £788.

My incoming this month will be £2,518.17 (wages, maintenance from ex, child benefit.

So this month I will be saving 31% of my wages. I leave myself with not very much to live on, but early next year am intending to buy my brother out of our house, so will have a huge mortgage, but hope to have savings so that I can immediately overpay and hopefully get the payments down.

BLB53

I retired early in 2008 and have been living off savings and investments so obviously do not currently save anything apart from reinvesting of the odd dividend.

However, when I was working hard, I was also saving hard and investing the money into investment trusts and also a pension. On average, I would say putting aside a min of 20% over a 30 yr time span.

From what I read on the forums and media, most younger people would rather spend than save but you can't have it both ways.

savings_my_hobby

I save at least £500 per month, I would rather go without than fail to meet this target, I also save other money for annual bills such as car MOT,tax and insurance but view it as spending money because it is at some point going to be spent, I like to have a few quid set aside just in case I only just scrape together the £500 so I don't have to go without, but like I said if I had to I would. If I can save more than £500 per month I will.

ajdj

I saved 41% of my income last year (excluding pension contributions). In an ideal world I would like to save 50%, however at the moment I feel as if I've got the lifestyle balance spot on. I could have saved 50% last year if I'd sacrificed my holidays but that's something I'm not currently prepared to do.

I'm focusing on trying to increase my income in order to save more. I've just benefited from an annual salary increase and eligible for promotion in the summer. In addition to this I'm hoping to get my employer to fund a part time masters degree which will help me jump up again in 2 years time.

There's a lot to be said for having short, medium and long term plans for saving. As well as having an emergency fund and getting into the habit of saving every month. It doesn't really matter how much, just that you do. Compound interest is a powerful thing!