(Closed) How much of your income goes to your savings?

posted 4 years ago in Money
Post # 46
291 posts
Helper bee
  • Wedding: January 2016 - 1950s themed bar

I love reading mrmoneymustache.com – this blog inspires me to get financially independent…but at the moment I’m a student and working part time so my savings are zero

Post # 47
1268 posts
Bumble bee
  • Wedding: May 2014

juliaGG:  Wow, this is a really interesting thread, but also kind of sobering! It’s great to get a glimpse of what others are doing and I am in awe of those that are successfully saving so much of their income each month. Darling Husband and I are still financially recovering from my many many years of post-grad study but try our best to contribute something from every pay to our savings. Fortunately our student days have taught us some lessons in being frugal!

I dare say that overall, the answers on this thread may be a little heavily stacked towards those who earn and save well, compared to the average household. I think it’s human nature to skip over posts where the thread titles make us panic (as many people neck deep in debt or struggling to save are likely to!) or not volunteer an answer when you’re not so happy about what that answer is. Not that it really makes any difference, and you’ve had some great responses to your original question. Just thought I’d mention it in case anyone else was feeling a little inadequate after reading about the efforts of all these super savers! 


Post # 48
1125 posts
Bumble bee

Usually we save 1.5 of my paychecks (get paid weekly) and half of DH’s second paycheck every month. So it usually ends up being about 30% of our income. If we work any extra than what’s expected (we’re both hourly, not salaried, and I also do extra work on the side sometimes) then most goes in savings too. 

Post # 49
33 posts

I currently put a fixed amount of £500 a month (about $800) into savings plus anything extra that is left over at the end of the month after all our expenses. It’s about 40% of my post deductiions salary (sadly tax, national insurance, pension payments and student loan payments take a huge chunk).

We live off my salary, it pays all our bills, rent, groceries etc. SO is currently putting whatever he earns into savings, minus expenditure on fuel and incidental expenses. He’s self employed so it can be very variable.


Works for us at the moment but starting to increase the amount I save each month to cover a couple of expensive holidays we have coming up! Also trying to save for a house but property in the UK is so expensive ๐Ÿ™

Post # 50
514 posts
Busy bee

I currently save 40% of my salary, my Fiance saved about 30% I am 22 he is 27 but at the moment I am earning more so it works out better for me to save more ๐Ÿ™‚ We are hoping if he gets a promotion he has been working towards in the next year we can start just living off his salary and saving mine, but it might be too tight ๐Ÿ™

Post # 51
50 posts
Worker bee
  • Wedding: May 2017

I currently save 40% of each paycheck. I’ve been living with my family, so I haven’t had to pay rent. I’m moving out soon and my goal will be to save 20%.

Post # 52
918 posts
Busy bee
  • Wedding: May 2015 - Cathedral of the Immaculate Conception / Courtyard Marriott Legacy Ballroom

I currently put 10% to 20% of my bi-weekly paycheck in savings. The rest of my paycheck and all of DH’s go to paying bills, decreasing DH’s debt, and paying for food and home improvements. I’d be more worried about saving more if I didn’t already have a pretty good amount put away in my emergency savings account – more than I make in 1 year – and even more money in investments. I also put the maximum company matched percentage of my income in my 401K. I’d like to save more for some much needed upgrades to our house, but we really don’t make enough to be able to afford that until after we pay off DH’s school debts.

Post # 53
6117 posts
Bee Keeper
  • Wedding: August 2012

First need to know where all the money is going and is all the spending necessary. Then work backwards to see what you can save.

For us, we want to know our MAX savings possible while living a moderate lifestyle.  We are not saving for anything (wedding for kids colleges) and only have a mortgage. 

After buildling some sort of cushion in the checking, we know what we need every month to “live.” Food, housing, gas, ultils, car, clothes, health, dog, etc. Everything gets saved  I have 4 years worth of combined income data in my XLS to see where we are at. Some months we have more bills, other months we do not. That’s why there is some cushion in the checking to deal with that flux, but at the end of the year it’s pretty constant.

We can live off of 33% of our gross income so that is like living off of just my income (which is 35% of the gross household income). 53+% of our gross goes to retirement. The rest is taxes (~14%). All course guesses as there are pre tax and post tax retirement implications.


Post # 54
192 posts
Blushing bee
  • Wedding: April 2013 - ceremony at a gazebo outside, reception at neighboring restaurant on a lake

I recommend saving as much as you can.  The bees on here that are living on one salary and saving the rest – do that!!  We only have one salary right now, so we live well below our means, smaller house, I have a 10 year old car that I will drive until it can’t be driven!  We don’t have TV or phone service, and use straight talk for cell phones.  Keep your living expenses low and save as much as you can now.  6 months living expenses in case a job is lost – rest into diversified mutual funds.  100% yes, you should be investing NOW, don’t wait any longer!  

Post # 55
1308 posts
Bumble bee

I don’t think there is any “right” or “wrong” number.  My Fiance and I make healthy incomes but live off very little of it.  He has student loan payments right now for at least another year, and we just choose to live a bit more simple.  I think this is a safe way to live for a lot of reasons.

As a rule of thumb, I would do at least 10% into your retirement savings, and at the very least have a backup of 3-6 months of expenses.  I follow the Dave Ramsey theory (1K emergency fund, and knock down all debts first, then start saving/spending on “luxury” items).  

I was saving around 20-25% towards 401K for a while and have always had at least 4 months of expenses tucked away, but now that I am getting married, I’m thinking Fiance and I will probably lower our 401K contributions to start bulking up to save for a home in conjunction with paying off his loans.

It’s hard, I see a lot of my friends buying homes after only being in the workforce a few years, but I have to remind myself a lot fo them are probably in heavy debt or in another situation than we are.  We are doing the best we can to live like students for as long as possible.

My stepmothers death taught me a lot about money and preparedness.  Living below her means for her whole life allowed her children to have plenty of money to pay for school and get started with their adult lives, and my father was smart with his money his whole life and took off over a year of work after she passed away without having to worry about money.  

Post # 56
3221 posts
Sugar bee
  • Wedding: September 2016

My income was cut when I moved in with Fiance (the job in my field paid ridiculously low). He pays 2/3 our rent and utilities, I pay the rest, we split groceries and pay our own car and cell phone bills. I try to put 25% of my take home in savings, but when we have big ticket items I’ll pull from there; so when I paid my car insurance, for example, that was partly money from savings. (I pay yearly to save on fees). I also dipped in a bit to buy a camera I saved up for, and I dipped in when we went on a trip. I try to put money back into savings when I have a little extra. I don’t exactly know what FI’s savings are, but I do know he has a lot. He saves about 20% every year.

Post # 57
146 posts
Blushing bee

juliaGG:  I don’t have a set number, but I just did the math and I save about 30% of my income.

The topic ‘How much of your income goes to your savings?’ is closed to new replies.

Find Amazing Vendors