How Much do you Save?

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  • carryheather
    carryheather Posts: 4 Newbie
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    According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    A far better rule is the thirds (or quarters if you have kids)

    buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

    with kids that becomes 1/4 as you need 1/4 for the kids.
  • Dird
    Dird Posts: 2,702 Forumite
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    Abrielle wrote: »
    Generally, Give 10%, Save 10%, Live on 80%.
    Dave Ramsey alert
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 11
    Mortgage (May 19): £71,754 | £30k in 2016: £30,300 (101%)
  • Cotta
    Cotta Posts: 3,667 Forumite
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    getmore4less wrote: »
    A far better rule is the thirds (or quarters if you have kids)

    buy a house with 1/3, spend 1/3 save 1/3, retire in 25 years

    with kids that becomes 1/4 as you need 1/4 for the kids.

    Is that 1/3 including rent/mortgage and the second 1/3 on essential spends such as food etc?
  • Tolkny
    Tolkny Posts: 72 Forumite
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    edited 18 May 2017 at 9:50AM
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    What has that "Dave Ramsey alert" got to do with anything in this thread please?
    Andrew S Hatton
  • Dird
    Dird Posts: 2,702 Forumite
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    Tolkny wrote: »
    What has that "Dave Ramsey alert" got to do with anything in this thread please?
    He always says give a little, spend a little, save a little...as did Abrielle
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 11
    Mortgage (May 19): £71,754 | £30k in 2016: £30,300 (101%)
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    carryheather wrote: »
    According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent!and food, 30 percent for discretionary spending, and at least 20 percent for savings.
    I wouldn't want to reserve anything for essentials - those costs should be minimised, not ring-fenced. You spend what you have to and save the rest (or splurge a little bit).
    Eco Miser
    Saving money for well over half a century
  • harriet_whit
    harriet_whit Posts: 4 Newbie
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    I am rubbish at saving, simply because I spend too much eating out or buying unnecessary items, I found an app called ontrees created by the money supermarket people on there you can set budgets and it links all to your bank and credit cards so fingers crossed I can start saving.


    I have also just started saying with the moneybox app to start getting into the stocks and shares game
  • cashbackproblems
    cashbackproblems Posts: 1,826 Forumite
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    I hardly save cash these days beyond a few months buffer as i have faith in my fund and share allocations. Even after my mortgage im able to save £750 in funds £250 cash
  • edinburgher
    edinburgher Posts: 13,463 Forumite
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    stoozie1 wrote: »
    could you explain this a bit more, please?
    chockydavid1983 wrote: »
    I think they're talking about investments being a form of passive income.
    You're getting income without doing any work for it per se, it's working for you.

    Yes, exactly that, thanks for jumping in chockydavid1983 :)

    When stock markets go up, it gets more exciting the more you have. When they go down, it's scarier!
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