Am I being greedy by saving 40% of my salary?

Gibb0

I'm 25 and saving £700 a month (40% of my after tax salary) and from searching online this already seems to be quite a good amount according to most people. I don't have much in the way of a social life and I can't drive due to my eyesight so after rent, bills and food, most of it goes into a stocks & shares isa but even this seems like a terribly slow way to generate money.

Is investment really the best option for passive income out there? I'm just getting bogged down by looking at my account each month and seeing I've saved another £700, even though I know this is a lot but I think I'm being greedy because I want that money to actually work for me.

2 years I have been investing for in a fund and I've made a measly 8% which on £25k is peanuts. So disheartening.

Am I just being greedy or am I right for wanting more from my money?

CKhalvashi

4% at the moment is about right, and what happens next will largely depend on the actions of the next Prime Minister; could be good, could be bad.

It's more than you'd have gained from a savings account, also.

lessonlearned

Absolutely not. Sounds about right.

The advice generally is to do a three way split, a third for living expenses, a third for savings and a third for discretionary spending. .

I am currently saving around 50 per cent of my income. I live simply but well. There's no point spending money if you don't need to but obviously don't make yourself miserable in the process.

It all depends on what you want out of life.

For ideas and inspiration try reading Mr Moneymoustache.

somethingcorporate

Sounds like you are doing well, whilst the thirds is all well and good I am sure most people don't manage this.

You could try a bit of P2P lending, I've had some pretty good returns boosted further by referral bonuses. Less volatile than S&S.

Wizzbang

Save as much of your money as you can! Be aware the Peer to Peer lending is not covered by the FCS guarantee, so you could potentially lose all your money.

Al1x

Sounds like you are doing well, not everyone can afford to save anything after living expenses.

gothrockchic1

Absolutely not, the way I see it is that it's your money and not anyone else's.

Happy saving!

manuel_ritz

I think you are not greedy, instead you are very practical and wise. It sounds great that you are saving a lot and not everyone can do that.

System

I don't think it's greedy. I save, I spend, I enjoy my life, I also have a nice buffer for those bad times when they come!

sharpe106

exactly how much are you wanting?

Give it a few more years on investing that if you retain the same percentage each year the figure will add up quite quick.

Christine.Hamilton_2

25 y/o and saving 40% a month is far from greedy. I take my hat off to you, I think it' an extremely mature approach and if there were more people like you out there, this country wouldn't be in the mess that it is in. Bravo @Gibbo!