How Much do you Save?

carryheather

According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.

getmore4less

A far better rule is the thirds (or quarters if you have kids)

buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

with kids that becomes 1/4 as you need 1/4 for the kids.

Dird

Abrielle wrote: »

Generally, Give 10%, Save 10%, Live on 80%.

Dave Ramsey alert

Cotta

getmore4less wrote: »

A far better rule is the thirds (or quarters if you have kids)

buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

with kids that becomes 1/4 as you need 1/4 for the kids.

Is that 1/3 including rent/mortgage and the second 1/3 on essential spends such as food etc?

Tolkny

What has that "Dave Ramsey alert" got to do with anything in this thread please?

Dird

Tolkny wrote: »

What has that "Dave Ramsey alert" got to do with anything in this thread please?

He always says give a little, spend a little, save a little...as did Abrielle

Eco_Miser

carryheather wrote: »

According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.

I wouldn't want to reserve anything for essentials - those costs should be minimised, not ring-fenced. You spend what you have to and save the rest (or splurge a little bit).

harriet_whit

I am rubbish at saving, simply because I spend too much eating out or buying unnecessary items, I found an app called ontrees created by the money supermarket people on there you can set budgets and it links all to your bank and credit cards so fingers crossed I can start saving.


I have also just started saying with the moneybox app to start getting into the stocks and shares game

cashbackproblems

I hardly save cash these days beyond a few months buffer as i have faith in my fund and share allocations. Even after my mortgage im able to save £750 in funds £250 cash

edinburgher

stoozie1 wrote: »

could you explain this a bit more, please?

chockydavid1983 wrote: »

I think they're talking about investments being a form of passive income.
You're getting income without doing any work for it per se, it's working for you.

Yes, exactly that, thanks for jumping in chockydavid1983

When stock markets go up, it gets more exciting the more you have. When they go down, it's scarier!