Post # 1
15% of pre-tax income (Gross) saved for retirement (20% if you didnt start until your 30’s)
25% of take-home for mortgage (including tax, insurance etc)
OR 30% for rent
5% of take-home owed to CC (carry-over balance from month to month- not if you pay to 0 each month)
How close are you to these recommended percentages?
Post # 3
ha! my cc bills are way more than 5 percent!
Post # 4
umm my cc bills are higher than that too, but I’m right on target with my mortgage and retirement savings.
Post # 5
My credit card bills are more like 20%? I mean I pay for groceries, car insurance, everything with my credit cards. How can it be 5%?
Post # 6
@PinkMagnolia I think they mean the carry over balance. Not if you pay it down $0 each month.
Post # 7
Interesting. I remember when I got my first apartment, my parents said a good rule of thumb was pay no more than 25/30% I think to rent, and it could go up to maybe 35/40%? if I had no car, which I didn’t. Good thing I did better than that, because my good paying job fell through (darn graduating in 2001 recession) not once, but twice (darn graduating in 2007 recession).
Post # 8
We’re over on retirement (18%), under on rent (20%), under on carry over CC (0) but we’re paying 20% on student loans.
We want to be in a better position when we’re our parents’ age than they are now
Post # 9
@lefeymw: I am above on the savings, below on rent, but above on credit card… even tho i could pay more of my credit card and put less in savings… i love paying myself twice a month lol
Post # 10
@futuremrsdunc: Do you mean you carry a balance that costs you an interest? In general, CC interests rates on the money you borrow is so much more than the interest rate you earn in a savings that you are losing money by not paying it off in full when you can.
A really simple calculation
If you have 2000 credit card debt at 15% interest and instead of paying it off you put 2000 in savings at 1%
You earn 20$ in savings, but you now own the CC an additional 300$ on the 2K balance.
Unless of course I am totally missing your point of your post.
Post # 11
Currently 30% of my income goes to savings. I have a work pension to scheme which I pay around 3.5% of my income to and they top up with the equivalent of 14%.
Our mortgage is 20% and taxes is another 5%.
CC bills are less than 4% but utility bills are around 10%.
That’s all based on post-tax take home pay rather than pre-tax (other than the pension). I stopped looking at my pre-tax income years ago as there’s not much point missing what I don’t have.
Post # 12
@lefeymw: Thanks for the info! The carry over cost on my card is 0% interest. I’m good with savings and budgeting… but since I moved into a bigger apartment I had to buy some new furniture (bedroom, bed, etc) and I’m just finishing paying those off! I need to stop buying clothes hahahaha.
Post # 13
We save almost 30% of our gross income for retirement savings and trying to save another 20% in regular savings.
We are looking at a mortgage of about 20% or less.
I’m glad to see other ladies with higher savings percentages, our generation really can’t be too careful with the uncertainty over social security and life expectancies.