Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
Page 1
  • DiggingOut
    • #2
    • 29th Jun 04, 7:51 PM
    Re: How much should I save?
    • #2
    • 29th Jun 04, 7:51 PM
    Well, how about 50%? Then you could really build it up.

    There is no real answer to this question. The right amount is the amount that you can afford to save within your priorities.

    If you are saving up for something very important to you, you might want to cut back on some things you would normally buy so as to save more quickly. If you are saving because your "rainy day" fund is too low, you might do the same.

    If you are saving just because it is a good idea without any real need, the savings might not be as important as some things you would want to spend money on now, so you might save less.

    It really is simply a matter of what is important to you. If the savings are important, set a higher percentage.
    • Joe_Bloggs
    • By Joe_Bloggs 29th Jun 04, 9:32 PM
    • 4,493 Posts
    • 1,583 Thanks
    Joe_Bloggs
    • #3
    • 29th Jun 04, 9:32 PM
    Re: How much should I save?
    • #3
    • 29th Jun 04, 9:32 PM
    @Leia
    It is also important to get the best return !for your savings. Where do you have them and what rate of !interest do you get. To me they would fit into a cash ISA
    very nicely.
    Regards JB.

    Sorry Leia I caught your full circumstances in the
    Anything Else section under the title Spend Savings or get a loan.
    I know you have an ISA and 1500 credit card debt
    Quote your interest rate you are paying on your debts and to whom as well.



  • Leia_Stephens
    • #4
    • 30th Jun 04, 4:39 PM
    Re: How much should I save?
    • #4
    • 30th Jun 04, 4:39 PM
    Sorry, JB, I am posting a lot at the moment, and often forget where I have added to threads :-[

    I have just checked my credit card debts and my Mastercard currently has a NIL balance ;D Just after Christmas it was just over 3k

    I have done a BT back to my Barclaycard for the 6.9% life of balance deal, unfortunately I missed the 2.9% deal by a couple of days

    Fortunately, I only have 1 credit card debt, which I want to get as low as possible before Christmas

    Leia
  • Leia_Stephens
    • #5
    • 30th Jun 04, 4:46 PM
    Re: How much should I save?
    • #5
    • 30th Jun 04, 4:46 PM
    I wish I could save 50%, DO

    I have just over the equivalent of 3 month's take-home pay in my ISA, but its interest rate is pretty good and I
    obviously like its tax-free status ;D

    When I get on top of my credit card debt, which hopefully won't be too long, I am hoping to save at
    least 10% of my gross pay in ISA monthly

    Thanks for your suggestions, DO.

    Leia
    • Joe_Bloggs
    • By Joe_Bloggs 30th Jun 04, 5:43 PM
    • 4,493 Posts
    • 1,583 Thanks
    Joe_Bloggs
    • #6
    • 30th Jun 04, 5:43 PM
    Re: How much should I save?
    • #6
    • 30th Jun 04, 5:43 PM
    @Leia that 6.9% is not a bad rate compared to the high teens% that you could have been paying . As you have only one active card and a modest debt, it might be worth while applying for 0% products. Off the top of my head I suggest Mint, MBNA, Sainsburys, Nationwide, there are many others. You can BT to this new card and try negotiating again with Barclays. You will save your calculated charges at least.

    Regards JB
  • Leia_Stephens
    • #7
    • 30th Jun 04, 6:17 PM
    Re: How much should I save?
    • #7
    • 30th Jun 04, 6:17 PM
    Thanks again, J B. ;D

    In December I got a 0% deal for 6 months with RBS Advanta (now MINT) and I managed to avoid paying any interest because I transferred back to my Barclaycard at the beginning of June.

    I tried to BT to another 0% deal, but gave up after
    7 refusals. My partner advised me to stop applying then

    I checked my credit report with Experian and found no problems, in fact I have never made a late payment, missed a payment, or gone over my credit limit

    Leia
    • lisyloo
    • By lisyloo 30th Jun 04, 6:26 PM
    • 25,441 Posts
    • 13,643 Thanks
    lisyloo
    • #8
    • 30th Jun 04, 6:26 PM
    Re: How much should I save?
    • #8
    • 30th Jun 04, 6:26 PM
    It could be the number of searches you've had close together.
    These are visible to other lenders and if you have had 7 in a short space of time, then it implies that you've been turned down and are desperate.

    Wait until some of them dissapear (searches stay on there for 12 months).
  • DiggingOut
    • #9
    • 30th Jun 04, 8:05 PM
    Re: How much should I save?
    • #9
    • 30th Jun 04, 8:05 PM
    I would be inclined to keep your savings at their current level and get the debt cleared. 6.9% is not a bad rate, but still higher than you can earn on savings.
    • Woby_Tide
    • By Woby_Tide 30th Jun 04, 8:20 PM
    • 5,208 Posts
    • 1,968 Thanks
    Woby_Tide
    Re: How much should I save?
    I agree with digging out, saving any money whilst having a card debt at 6.9% is losing money (assuming best interest rates on accounts are still 6% max as they were recently). Clear the debt asap then start the saving, for time being you can use card as rainy day fund for time being
  • Leia_Stephens
    Re: How much should I save?
    Thank you, DO and WT ;D

    Yes, it does seem sensible to "kill off" my debt as soon as I can, I don't want to dibble into my ISA but I am thinking of not adding to my other savings until I am
    in credit with my Barclaycard ;D

    Hopefully 200 to 250 a month will "kill it off" before
    March

    Leia
  • Leia_Stephens
    Re: How much should I save?
    I would like to ask a nosy question

    Generally how much do you Regular Savers out there save monthly ???

    I shall start the ball rolling:
    when my credit card debt is "killed off" I am HOPING to save 10% of my gross pay each month

    Leia
    • Woby_Tide
    • By Woby_Tide 2nd Jul 04, 1:30 PM
    • 5,208 Posts
    • 1,968 Thanks
    Woby_Tide
    Re: How much should I save?
    10% of gross! wow wish I could! I suppose in fairness it's all about circumstances as to what to save. Personally unless we're saving for something specific i.e. holiday, home improvement, children etc. any spare money goes on our mortgage as we have a semi rainy day fund already. If we didn't have a mortgage then yes probably would save whatever we had left over. For last few years we have always just worked on a set amount of money each month that we both put x into a main fund to pay all the bills/mortgage/food/car etc. We then have a set 'allowance' for ourselves, then any money over that amount each month is 'savings/mortgage overpayments' etc. rather than just seeing us fritter it away on a new gadget or something!
  • DiggingOut
    Re: How much should I save?
    5-6% of gross in overpayments on flexible mortgage.

    8% of gross in stakeholder pension.
    • Paul_Herring
    • By Paul_Herring 5th Jul 04, 3:52 AM
    • 6,944 Posts
    • 3,622 Thanks
    Paul_Herring
    Re: How much should I save?
    Generally how much do you Regular Savers out there save monthly ???
    "17.5%" of gross into pension (Current maximum allowed for my age, however work contribute 5% and I put in the other 12.5% (after the 22% is added by the government) - this works out in reality to 9.51% of gross/12.68% of net.)

    I usually save between 4.4%-22.18% of gross/5.91-29.5% of net per month.

    So on a good month roughly 32% of gross/42% of net.
    On a 'bad' month, 14%/20%.

    Figures given don't include any exta income from overtime or site work. When I get exta, most of that extra gets added to savings.
  • archived user
    Re: How much should I save?
    "Generally how much do you Regular Savers out there save monthly"

    Out of my net income, I generally put away about 35%. No, I'm not a single person still living with my mum - I've got 2 young children, a wife who looks after them and a (small) mortgage.

    I just view saving money as a powerful means of gaining financial freedom and peace of mind in life.

    Balraj
  • halcyon_drift
    Re: How much should I save?
    I have heard somewhere that a good rule of thumb for saving is half your age as a percent

    for example -
    a 32year old earning 30,000/year should save 16% of 30grand = 4,800/year

    by using this method, it takes age into account, however doesnt apply to everyone.

    hope this helps

    Halc
    • Tim_L
    • By Tim_L 5th Jul 04, 1:54 PM
    • 3,399 Posts
    • 3,233 Thanks
    Tim_L
    Re: How much should I save?
    "Generally how much do you Regular Savers out there save monthly"

    Out of my net income, I generally put away about 35%. !No, I'm not a single person still living with my mum - I've got 2 young children, a wife who looks after them and a (small) mortgage.

    I just view saving money as a powerful means of gaining financial freedom and peace of mind in life. !

    Balraj
    I save a similar proportion, perhaps 30% and have similar circumstances to Balraj - the key is to add any extra income (e.g. payrises, windfalls) into the savings pot before you see it, and try to avoid spending any of the interest, thereby boosting the overall increase in annual net worth to a much higher proportion. It also trains you to see your savings in terms of what they provides in interest, rather than as a large lump of cash available to splurge, which is important.

    I absolutely agree with Balraj that it is saving that gives you freedom, rather than buying everything you want when you want it, despite what many people believe, and what we have been led to believe by the marketeers. After many years of this savings regime, I can now afford to do (or buy) just about anything I want, though I tend to choose not to because I've learned to be more interested in things of actual worth than bling bling display. I could leave work whenever I choose without having too much to worry about (so I can take risks with changing jobs if I choose), and I can be confident I'll have plenty of cash in retirement whatever happens to my company pension scheme.
  • Leia_Stephens
    Re: How much should I save?
    I agree too that it is preferable to build up savings and financial freedom, rather than wanting to buy things NOW and using up money immediately

    However, my impulse to spend is stronger than my impulse to save, even though I have enjoyed watching my ISA holdings build up since '99 ;D

    As well as hoping to save 10% of my gross pay in my ISA, I am currently saving 5% gross in my occupational pension scheme, I believe my employer pays 10% gross into my pension pot ;D

    I don't have a mortgage at the moment because my partner and I rent, but we are continually looking at house prices and hoping to buy soon.

    My Dad advises me that it won't be practical for me/us to save when we have a mortgage ???

    Leia
  • Leia_Stephens
    Re: How much should I save?
    Thank you for your thoughts, everyone ;D

    It is pretty motivating to read of savers notching up savings of 30 or 35% each month

    Once I have no credit card debts I am hoping to drip-feed small amounts of money into other savings accounts - I currently am saving with Smile, ING and Halifax - as well as saving 10% gross in my ISA.

    I am thinking of transferring my ISA to another provider though, NS&I's interest rate isn't competitive, even though I appreciate the security of this "bank".

    Leia
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

780Posts Today

6,219Users online

Martin's Twitter