How much should you be saving?

[Deleted User]

£147,000 savings on £27k income? Sounds like someone had an inheritance. Or they've been saving their entire post-tax income for 6.6 years. Or did she buy a few bitcoin when it was launched?

Now savings is all well and good, but I've earned far more than your daughter in HPI over just 6 years.. turning £40k of deposit into £250k of equity.

Skag

Thanks for your lovely answer snoop2008.

Personally I have no issues with debt, though I do have some 5-6 credit cards. Why? Because of the short term perks (Amex gold, amazon etc). I use them, get the perks, and then just scrap them. I know, credit check lowers with each card issued, but I don't mind since I pay my debt whole every month.

I guess it goes down to priorities, do you want to purchase your own house one day, or do you want to go around the world, and still be on rent 25 years later? Unless one's earning so much that he can do both. In 5 years

And again, 25 years from now, one would either say "ah...look at what a nice house we have! But we didn't get to see all the things that we could have seen..."

or

"Ah...look at those picture albums, we really have seen a lot in this world! But...we're still on rent whereas we could have had our own home".

That's what scares me!

Bravepants

You can have both, just don't buy a McMansion! :-) My partner and I have a reasonable sized 3 bed Victorian terrace house out in a coastal town about 70 miles from London. It cost me £145k in 2007; probably worth closer to £200k now. When my partner moved in with me we paid off the mortgage. It's modest but it's tidy inside, warm and cosy and is big enough for the two of us. A friend of ours lives in Hertford in a similar terraced house, she earns around £60k a year, works all hours as she is a director, but her mortgage costs take most of her take home pay. Her house is smaller than ours, terraced as I say, but is worth £400k because of the town where it is located...location, location, location! She could get a less well paid job somewhere else in the country, get a cheaper house and have more money to put aside for the future, as well as freeing up work time for more leisurely pursuits. I think she is attracted to the power though! :-) It seems a bit daft though to me.


If you work in central London you have a choice to live there and pay huge rents/mortgage or live outside and pay commuting costs (and put up with all the other joys of commuting!)


I feel sorry for young people today trying to get a house under their belt. And exorbitant rent is so much dead money, it makes me sick just thinking about it.

snoop2008

Skag wrote: »

Thanks for your lovely answer snoop2008.

Personally I have no issues with debt, though I do have some 5-6 credit cards. Why? Because of the short term perks (Amex gold, amazon etc). I use them, get the perks, and then just scrap them. I know, credit check lowers with each card issued, but I don't mind since I pay my debt whole every month.

I guess it goes down to priorities, do you want to purchase your own house one day, or do you want to go around the world, and still be on rent 25 years later? Unless one's earning so much that he can do both. In 5 years

And again, 25 years from now, one would either say "ah...look at what a nice house we have! But we didn't get to see all the things that we could have seen..."

or

"Ah...look at those picture albums, we really have seen a lot in this world! But...we're still on rent whereas we could have had our own home".

That's what scares me![/QUOTE]


Don't be afraid!! Fear can work for you rather than against you. You do have a great salary, its how you put it to use. In todays climate getting onto the property ladder is not easy, but you have the means to achieve this. You can have both worlds, who says you can't?


If its the quality of life that worry you, remember unless your keeping up with the jone's lol... you'll never truly be happy.. No two peoples experience can ever ever be the same.. even when they find themselves in the same place!


Evaluate what happiness and quality mean to you, whats important, as I believe , you really are in a position to have it both!!

Skag

Thanks for the positivism snoop2008, as weird as it may seem, it does help to put things in perspective from time to time!

Skag

Bravepants wrote: »

I feel sorry for young people today trying to get a house under their belt. And exorbitant rent is so much dead money, it makes me sick just thinking about it.

As we are all, but nobody seems to be able to do something about it. My rent, in the area of £1600 for a small 2 bed! :eek: And that's a good price for the area!

Bravepants

Skag wrote: »

As we are all, but nobody seems to be able to do something about it. My rent, in the area of £1600 for a small 2 bed! :eek: And that's a good price for the area!

Madness isn't it?!

Skag

Well, it goes with the high salary!
My thinking though is, I'd rather earn 4k, spend 2k in rent and living and stash 2k, rather than earn 1500, spend 750 and stash 750. Because that 2k have more value when going abroad or buying stuff.

OldMusicGuy

If you are in a high paid but high stress job, you need to read the Escape Artist's blog. Start here: https://theescapeartist.me/about/

See if you agree with his perspective and approach. I certainly do and wish I'd read his advice earlier.

planteria

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.

i haven't yet read what your activities in investing are, but this reads positively to me. as pointed out, you could take an 'easier' more passive route, but maybe the time invested is worthwhile now/in the future.