How much should you be saving?

planteria

fwiw 1 long haul 3-4 short trips seems a fair bit of 'getting around and seeing stuff' to me. so beyond that, invest (rather than save).

Skag

Investing can take up a good chunk of my weekly activities! I am a bit too into it, as I want my money to generate money, rather just sit there. Choices seem rather poor these days though and one has to do quite a lot of research.

Bravepants

Or get a job that involves some international travel and allows you to commute one expensive business class ticket to two economies (saving the company money) while allowing to take your partner with you!


My partner and I have done the mainland US (several times), Australia and Hawaii (not the touristy bit!) like that!

Bravepants

Skag wrote: »

Investing can take up a good chunk of my weekly activities! I am a bit too into it, as I want my money to generate money, rather just sit there. Choices seem rather poor these days though and one has to do quite a lot of research.

One fettered global equity index fund of funds should do you! Set up a monthly payment plan and leave to simmer. That's it!


Depending on your level of risk tolerance you might want an asset mix of bonds and equities in your funds though. Vanguard, L&G and other do multi-asset funds.

Skag

At the moment I've only invested in ETF and some shares for both my SIPP and ISA. It was only my first time though (last year), but I am exploring Index funds as we speak (after having read the intro at MMM, made me curious).

But at the end it all feels like "save save save, to buy a house and invest more to ensure a good family life!" (in London, tell me about it!).

[Deleted User]

You missed...
That couple who might earn £90k between them, but have loads of childcare to pay for, the cost of a 'family holiday' being several grand at a minimum, and general outgoings that don't actually allow for much savings...

Hi, that's me! I can roughly save 10% of my earnings (on top of 10% of earnings into pension), but that eventually gets spent on a holiday. I've just had a paycut.. before that I was saving 20% of earnings so we had savings AND a holiday(or two).

Combine it with high costs inflation, low wage inflation and the potential for interest rates to go up to counter-inflation... bye bye ability to save

TheShape

I manage to live in London and manage to save and invest and have fun and manage to have three foreign holidays per year. I manage this on an income of £27.5k.

Skag

TheShape wrote: »

I manage to live in London and manage to save and invest and have fun and manage to have three foreign holidays per year. I manage this on an income of £27.5k.

Wow, you're a hero!
I guess part of it boils down to "the more you have, the more you spend", and if you're a little spoiled, it's not hard to spend a bit more!

snoop2008

Good afternoon peeps lovely posts here.


Skag: I was having this very conversation with my daughter last night. Some here have mentioned, many good ideas, from enjoying your life, saving for a rainy day, cutting back on spending, etc...


In my humble opinion,, life and goals are what you make it. Planning ahead for the future can bring many rewards.. Keeping up with jone's I've seen this a thousand times..


I know folks with wonderful large salaries, some invest, some spend, they live for now and many get into debt. Some live within their means and others just don't think about tomorrow.


We will never really know what lies around the corner but good planning will help shoulder the blow should things go in a negative direction, ie: health, loss of job, financial commitments, all sorts that effect life as a whole.


I once many years ago, went into a bank, never having a credit card, they assistant asked if I was living on another planet, lol.. As I believe that it is far better to earn ones wealth than to get into hot water through credit cards,, I told him, ' As far as your concerned, I am either very stupid, or very clever.


So where I am going with this:


My daughter like , ' Theshape', good afternoon to you, hehe! earns the same wage. she has been working and saving for years now. she does not have a credit card, why? because she wants to own a home one day. Bulding her history starts next year.


The point I am making, is , is not the amount of money people have, but what they do with it and how it can make their lives better long term as Theshape has mentioned here!


Next years my daughter is on target for her savings which is very high amounts to £147000 next December. In her own words, ' the bigger the deposit the more control she has over her life and desires for the future. The idea of paying a mortgage for next 25 years, is not on her cards she says.


So thank you for this post, stay true to yourself, your in a good position for the future.

Bravepants

I didn't get a credit card until I was working and the only reason I got it was at my boss's suggestion to pay for work travel and subsistence expenses. I still have a credit card, good for extra guarantees and assistance if purchases go wrong, but I pay the balance off every month.