Good rule of thumb on how much to invest/save?

Thatsthespirit

Alexland said:

Thatsthespirit said:

The company doubles whatever we put in, I think that’s why. It’s an excellent incentive. So if I put 7.5% in... the company will put 15% in. 

So don't you kick yourself for every payday that you didn't claim this free money?

Prioritise Pension around 40 years away over share scheme then? Baring in mind sooner I can buy/invest a house a stronger position il be in financially 

Alexland

Although drawing the pension might be a long time away now is the time to contribute so it's worth trying to do both in parallel. Can you afford extra pension, Lifetime ISA (if you are still a first time buyer?) and share scheme each month?

Apodemus

Eco_Miser said:

My rule of thumb is save whatever you don't spend, and spend only what you need to.  In this context you need to spend sufficient on leisure that you don't feel trapped in a work-sleep-eat cycle, but a lot of leisure pursuits can be low cost.

While that is good advice, many people find that there is nothing left after the spending is done, so it can be easier to "cut your cloth" by taking the savings out first. For many years I worked on the 10% approach, putting 10% away on pay day, so that, psychologically, my "take-home" was the remaining 90%. Later on, at a point when I had a promotion, I amended that to make it 10% of top-line pay per month - my take-home still rose and I never noticed the difference.

DireEmblem

I like your approach Apodemus.  Essentially you are saving money you have never had, so will never miss it if I am reading right.

I took a similar approach, the problem being that I should have kept an eye over the years on how much I could afford to increase it.  I now add more than enough to max out my employers contribution.  Free money and all if you can.

Eco_Miser

Apodemus said:

Eco_Miser said:

My rule of thumb is save whatever you don't spend, and spend only what you need to.  In this context you need to spend sufficient on leisure that you don't feel trapped in a work-sleep-eat cycle, but a lot of leisure pursuits can be low cost.

While that is good advice, many people find that there is nothing left after the spending is done, so it can be easier to "cut your cloth" by taking the savings out first. For many years I worked on the 10% approach, putting 10% away on pay day, so that, psychologically, my "take-home" was the remaining 90%. Later on, at a point when I had a promotion, I amended that to make it 10% of top-line pay per month - my take-home still rose and I never noticed the difference.

While this is true, if it (taking savings first) works, then the second part of my adage is not being followed, and unneeded spending is taking place.

In practice the bulk of my saving takes place on the first of the month by SO, and my income arrives partly on a 28 day cycle, and partly on various quarterly-ish cycles.

Bravepants

Well, as Martin says: "Pay yourself first!"

I'm saving as much as it takes to lower my monthly spending to the level I estimate that I can comfortably live off in retirement.