Is saving 10% of your take home pay enough?

[svodla]

In a first job out of uni (postgrad). Take home £3k a month and only managing to put away £300 a month at the moment. Spend a lot on going out and enjoying London and seeing the world. Rent and bills for a room in London are £1,200 for context.

It’s more than most people save and especially straight out of uni. So I’d say it’s plenty.

If you're on nearly 50 grand gross then you're in the 15% best paid in the UK. Cut your cloth, and your attitude, accordingly.

What is your aim?
What's your priorities?
I save more on similar disposable but I'm saving for a house deposit

I'd be saving as much as possible to move out of London and get on the property ladder.
Are you paying into a pension, Uni pensions are ok and they put a good chunk in too

I wondered that too... what are you saving for OP. It depends you won't be able to buy in London. If you are 20s/30s it's good you want to travel and enjoy yourself. I save £200 per month mainly for DS. I work part time and in a single mum... it's all relative!

We do about 10% general savings, 10% mortgage overpayment and then 24% on savings we'll spend, so holidays, Christmas, annual bills. We also include in that pots for things like the garden, events etc.

It’s more than I’ve ever earned in my life, as a teacher of 35 years’ experience who has been a Head of Department in both state and independent schools. So, yes. In the real world, it’s a lot.

I saw this tiktok recently and it said you should save 10% so I upped my savings but I keep needing to take it back!

@TheThingIsYeah as take home, of course it is. It would put OP in the very top % of earners in the UK. Remember the guy from QT who was earning 80k and was in the top 5% (figures from memory so likely out by a little)... this isn't much less depending on deductions.

If you don't think it is, you're stealth boasting too.

Hear, hear @KenAdams , well said.

Over invested here so I did a salary calculator. With no deductions other than student loan it's a little over 50k. I expected it to be more based on my take home salary and all the deductions but it's still a very good wage, add that to just being out of uni and you're doing very well.

Nobody is putting her down for earning well. They are questioning the way she’s saying it’s not really enough to save properly.

50 needs, 30 wants, 20 savings.

So many people have nothing to save at all, so yes, being able to save £300 a month is great.

I always look at it like I want to live, not just survive. So I pay the bills, enjoy life a little without being reckless, and put aside whatever's left over.

Sadly I've had nothing left over for ages, so not doing very well with the whole saving thing..

@svodla actually, to all those disbelieving at the salary, £36000 is not at all a big salary for london! OP do you not get a london lead on top???

It's not £36k, it's a minimum of £50k with no deductions apart from student loan. 3k after tax etc.

Surely it depends what you're saving for, how much it costs and how soon you'd like to buy it?

If not saving for any particular purpose then £300 sounds like a really decent amount. But if you're starting from zero and want to put a deposit on a flat in London, it will take you a long time to get there at that rate, sadly.

No, £300 a month is not enough to be saving. Your 10% savings rate should be gross salary not net. I’m assuming you’re matching your pension contributions?

If so, I would double your savings, stick it into a stocks and shares ISA and educate yourself on investing.

Always pay yourself first, which means don’t pay/buy everything and save what you have left over. Pay your fixed expenses, automatically transfer 10% gross saving into an ISA (or whatever vehicle you prefer) and spend from your leftovers.

Set up buckets for things you want (trips, car, emergencies), so you have money there.