How do your savings compare to your earnings?

Fulham_Mark

Should you only count the proportion of your property that you actually own rather than mortgage being paid?

As for pensions minus 20% for tax?

You'll come out looking bad if you have saved lots but have recently had a huge payrise or if you're self employed and you count your income before all tax (about 42%) has been taken off

I'm 4x but only because of the ripple effect on house prices from being close to chelsea.

That doesn't seem fair either as I would always need a place to live so surely I can't count on property as savings...

maybe I should move back up north and retire...

Paul_Herring

Fulham_Mark wrote: »

Should you only count the proportion of your property that you actually own rather than mortgage being paid?

The question stated that you should ignore mortgage debt; I read that to imply that you should also ignore any equity you have in your home.

Imelda

well adding up what I have in short and long term savings (which is in my sig) I have almost exactly my annual earnings.

However, I have no mortgage and I only counted my basic salary which is topped up with an annual bonus of between 50 and 100% of my basic wage.

irishwench69

Well I have no debts (aside from Mortgage), but given that I have a pretty well-paid job, levels of savings of 10 x my income are nowt but a (very nice) dream.........

Not including pensions (I have multiple pots, from various jobs etc), I would probably be under 25%.........kind of depressing, I didn't think I was doing *that* badly.........

IW x

beingjdc

albertross wrote: »

It would depend very much on your situation. You would have to balance future years tax savings against the extra interest it would cost you over the period of the borrowing.

If you borrow 3000 at 18% (or have other debts at 18%+), then the 1% tax advantage that you get in an isa is going to take some years to get back, ISA's will probably be gone by then.

Cheers. I certainly wouldn't do it at 18%! I have no other debts. I was thinking 7% or thereabouts, otherwise it's not really worth the bother, I could probably scrape it together in other ways.

[Deleted User]

This time last year, I had savings worth about 40% of my annual salary. Now, i have savings of about 3% but i've got a nice roof over my head and apparently 200% of my annual salary in collateral in my home (and 580% of my salary in debt...)