Post # 1
Just curious to see-
Just began my career with a “higher” income (I say that saying relative to minimum wage or slightly above what I used to work). I also support both myself and my Fiance while he is in school.
After bills, a big portion of our money goes to credit cards (paying at least double payment on all of them), then savings (we budgeted $600 per month- which is 15% of our take home pay) and then whatever is left we split as discretionary (it’s not much but I figure- we are both working our asses off we need some play money too).
Sometimes I wonder if we should up our savings, or if we’re in a good spot.
How much do you save?
Post # 2
I’m assuming you aren’t including retirement savings?
I make substantially more than Fiance and we live off my income. We also have 2 kids.
I save a couple hundred every 2 weeks. Then, everything Fiance makes (which varies considerably) also goes into savings. Some of that is for long term savings, some is to “save up” for a vacation or another splurge, some is emergency fund.
I also have a separate savings account for the kids which I deposit a few hundred into every month. This is separate from their education fund. It is intended to give them a head start as an adult – assist with a down payment or a wedding or to kickstart a business.
All told we save about 7% of my income and 100% of FI’s.
Post # 3
I have my entire paycheck deposited into my savings account. I then transfer the amount I need to pay bills, student loans, discretionary spending, etc. into my checkings. Then I transfer around $200-300 into our joint account for our wedding/house fund. The rest stays in savings, which based on my calculations is around $500 per paycheck.
I will say, I come from a “saving” family and learned to live frugally (but still indulge from time to time), so this is probably not typical. I shop sales for groceries, clothing, etc. which definitely helps! Fiance and I have lived together 2 years now and he’s still perplexed how I manage to save so much even though we split bills evenly, have similar loan payments, and make the same salary. He likes to indulge a lot more than I 😉
Post # 4
mingogo4 : we save between 20 and 25% of our net pay each month. This doesn’t include our retirement which is taken out before we get paid. Our only real debt is a mortgage since we have 1 paid off car that we share and no student loans.
Post # 5
I save 10% of my net income, which is a little over $200 a month, I wish I could afford to save more, but I unfortunately have a lot of debt that im trying to pay off at the sane time.
Post # 6
It use to be like 35% of my take home because we were saving up for a house. Now that we have the house and I am now part time, I save 5% or less. I always put SOMETHING into savings hehe. I’m not the primary income tho.
Post # 7
I have no credit card debt and a very nice but old paid off car, so my only bills are my mortgage and utilities. I have a $15k emergency fund and put 25% into my 401k. I still have enough left to enjoy my nights out and hobbies, which are fun but not super expensive.
I was able to get to this point by prioritizing what is really important to me:
- Financial security, now and in retirement
- A good house in a solid area
- The above mentioned emergency fund
- Being able to take a vacation or buy a nice vintage piece of jewelry when I want 🙂
What is not important to me:
- A new car every 4-5 years
- An oversized house
- The latest cell phone
- Designer clothes
- Expensive salons
- Generally any trendy “must haves”
- Spending $100/month on Starbucks like my broke sister does….
I will add that I do not have children, which I know is a huge money drain on many people, and I am older than probably most who post here. Being older, my money mistakes were made years ago and I took the lessons from them to heart.
Post # 8
I save 25% of my pay currently as I have a mortgage under my name. Darling Husband saves almost 60% as he has doesn’t have a mortgage. His savings is going towards the renovation.
Once we combine income and living expenses when we move in together. We expect to be saving at least 30% on our combined income per month.
Our secret is simply down to earning more. Our combined monthly after tax income would be $14k. We don’t have any student loans and we’re in Australia so we have compulsory super which our employers pays for as part of our compensation package. For our income, our savings is quite low as we’ll be servicing two mortgages without any additional rental income. The reality is we should be saving a whole lot more than 30% and would be able to if we live more frugally.
Post # 9
I max all tax advantage accounts accessible to me (401k, backdoor ROTH IRA, HSA). I take advantage of my company ESPP. Outside of those, I invest a little more than 50% of my net income. I follow the Bogleheads forum. It helps that Fiance shares a similar mindset.
I don’t have any secrets. Live below your means and keep fixed expenses low? I prioritize my purchases so that I can afford to indulge on the things that are really important to me. I love to travel so I make that a line item in my budget. My dog goes to daycare. I love high-end jewelry but only make a few purchases a year.
On the other hand, I have a smaller house than what the “online calculators” say I could afford; it makes life simple with less space to fill and clean. I have a (semi luxury) car I bought in cash used after lots of research. I dislike shopping for clothes. I don’t drink alcohol (my preference). All my tech is provided by work. I really try not to have recurring monthly expenses (no cable, no phone bill, subscriptions, debt bills, bank charges, etc).
Maximize income and really prioritize your spending. Watching your invested money grow is amazing.
Post # 10
- Wedding: September 2017 - Pearson Convention Centre
We don’t have any debt other than our mortgage. We started saving for our retirement and we also save 15% of our income in our savings account
Post # 11
Around 95% of our combined income goes into our 401ks/investment accounts. Our only debt is our mortgage and we’re not big spenders. We also get a lot of perks through work (laptops, phones, meals, gym memberships, etc.). But we just had a baby so I’m guessing that number will soon go down a bit…!
Post # 12
We save 80-90% each month. I wanted a certain type of lifestyle, and I hustled until I achieved it. I like to shop (a lot), and I spend a crazy amount on jewelry, makeup, purses and shoes. So I learned early on that I needed to make a lot of money to have that lifestyle. I make about 10x what SO makes, but he has almost zero interest in material possessions (aside from frequent travel and driving a luxury car), so we are in perfect balance. 🙂
These aren’t “secrets” per se, but I’ll tell you my three main money tips.
1. Earn way more than you can spend (this is a much better strategy than trying to be frugal).
2. Don’t carry any debt. We don’t have ANY debt – no credit cards, no student loans, we paid cash for our house and cars. This leaves our money flow available for any luxury purchases or traveling we want to do. Shakespeare wrote, “Neither a borrower nor a lender be.” I try to always live by that philosophy.
3. (This one is the most important) Money is a never-ending cycle of giving and receiving. The more you give, the more you receive. All of the money we “save” is invested into startup companies. That way our money isn’t languishing in a bank account somewhere, it’s out in the world – building, creating, helping. Money is energy, and it likes swift action, so we keep ours in motion.
It took me 10 years to learn the simple idea that if I earned more (not saved more), I’d have more to spend and could have the lifestyle I wanted. I know my methods are contrary to the “practical advice” that is typically given, but all I can tell you is what I know to be true. Don’t be fearful about money, and don’t make decisions from a place of desperation. Your dealings with money should feel light and expansive, not restrictive and heavy.
My personal feeling is that you need more “fun money” in your life, not more savings.
Post # 13
Since I got engaged last June, I’ve been saving around 60% of my income every month. I miss new clothes! So I’m going on a mad shopping spree on our honeymoon! I give myself a limit on credit card every week and then I transfer everything else to my wedding fund.
Post # 14
TexasBride2Be : Interesting as I’m of the opinion that the more money you earn the more you spend. Your tastes just get more expensive!!
Post # 15
We put about 10% of our salary in a specific savings account each month, which is the maximum we can put in to it (it’s government ISA which will give us a 25% bonus on the amount we have saved when we buy a house), naturally they have a limit on what you can put into that!
Most of our saving is done in our standard accounts rather than transferring them out of reach, interest rates on the current accounts are actually better than most of the savings accounts here at the moment. Our retirement savings are all direct from salary so we don’t even see that money. Once we’re married we’d probably rearrange the finances to something a bit more formal, but currently we have separate money and keep track of our own expenses.