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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask how much (in %) of your income you save?

74 replies

SuckAtRelationships · 13/08/2013 21:44

OK so this is a thread asking for actual details of income and savings so if this will offend you or make you upset about your own circumstances, please don't continue to read :)

I recently got a job (at last!! :o ) and am thinking about the future for me and my son, and so savings. I was chatting to a friend who seemed to think me mad for the amount I intend on saving as it will leave me with very very little spare. I am used to that though as I was on the dole whilst I studied at home for years. I am not in a good, well paid job. In fact, it is a low paid job so I feel it even more important to save as much of it as I can.

I plan on saving 20%. I have made sacrifices to do that like not having or running a car etc.

What does everyone else, in percentage of gross income, save? No need for details of income, just percentage :)

I am trying to decide if IABU or not. (BTW I know as it is my money I am entitled to do what I want. More just wondering if I am normal or not)

OP posts:
numbum · 13/08/2013 21:55

DH and I are crap at saving. In fact, we put money away each month for our DC and the money they have in their accounts adds to more than we have at the end of each month! DH earns a good wage, I earn a modest wage but we don't have any actual savings. We use the credit card in emergencies

You are doing the right thing believe me!

EndoplasmicReticulum · 13/08/2013 21:56

At the moment, nothing. But I am overpaying on the mortgage.

Latara · 13/08/2013 21:59

0% because there is nothing left when all the bills are paid and food is bought.

NarkyNamechanger · 13/08/2013 21:59

About 15% but we haven't made sacrifices (yet ) to do that. And so far the savings are going towards a dream holiday so unsure if this counts in your 'rules'.

VenusStarr · 13/08/2013 22:00

I save more than I thought percentage wise, thought it was about 10% but it's actually around 15% I have some savings that I never touch and another account that I dip into for household needs such as a new fridge freezer (this month's unexpected purchase!)

Congratulations on your job. It's good that you're saving but don't make it all inaccessible, just in case you need to access it urgently :)

mumofweeboys · 13/08/2013 22:02

I don't do a percentage. I work out all my expenses - all bills(direct debits), car stuff, food, spending money for the month. I then have separate easy access savings accounts for birthdays/Christmas, clothes inc shoes and uniforms for kids, days out ect - moneysavingexpert is great for breaking down household budgets. If there is anything left over I put it in an ISA as my savings.

Doobiedoobedoobie · 13/08/2013 22:03

Well up till this month nothing. But I started working again (have been sahm for 2 years and prior to that DH was a student so no opportunity to save) last month and this month will be my first pay check hopefully. Am aiming to put away everything I earn minus child are costs and a few hundred for petrol etc and DH continue to pay the bills. I guess it'll work out around a sixth to a fifth of our joint income post tax though that won't add up to loads as we're not big earners.

Technotropic · 13/08/2013 22:04

YANBU to save what you can. Rates are a bit rubbish at the moment but providing you don't have any debt, perhaps other than a mortgage, then it's better to save than spend! If you do have credit cards etc then best pay these off as the interest will be greater, meaning you will benefit more by paying these off than saving. If you're lucky enough to be debt free then happy days!

I save in the region of 20% and whilst I'm happy with this, I would rather it be more.

The best thing I've found is to set up a standing order into an account that's difficult to touch. Then forget about it.

All the best!

AKissIsNotAContract · 13/08/2013 22:04

I put 17.5% of my income into my pension.

Deemail · 13/08/2013 22:05

10% that is never touched it is for our children's education. We save besides but it's for household items, cars, holidays not all in one year. Wink

I think you need to be realistic if 20% is manageable then stick with it, if you are struggling to make ends meet relax a little.

Are you saving for something in particular?

sarahtigh · 13/08/2013 22:08

I save at least 30-35% but that is because self employed and most of it is for tax and NI every january and July I oversave

I think if possible about 10-20% is good, you should first save 3-6 months salary in easy access account and then ISA's as tax free, do not put all or even most of your savings in childrens names as if you really really needed it you would not be able to get it, it is not in your childs best interest to have a nest egg at 18 but be homeless at 9,

after 3-6 months salary overpayiong your mortgage if it reduces interest/length of loan is a good idea but not for all your savings as irretrievable if needed for something else

do not put all eggs in 1 basket but do not use 20 baskets either 3-4 is more than enough unless very wealthy

it is a good idea to put 10% in savings account and try and live on rest as it is much harder to keep 10% back if you really need to you can always move money back to current account

living off "baked beans" for a year possibly 2 is OK if for a specific thing like house deposit but it is not sustainable long term if it is miserable

or maybe save 20% 10 months of the year and use december's for presents ( not just Christmas but also birthdays) and use june's for holidays, meals out day trips etc

mameulah · 13/08/2013 22:09

DO NOT SPEAK TO YOUR FRIEND ABOUT WHAT YOU ARE SAVING.

I have learned the hard way that it is very hard for people to be happy about the good choices you make.

Right now it doesn't make odds to you and your friend. But give it a few years when you have been saving and she hasn't......

CatAndFiddle · 13/08/2013 22:13

Before I went on maternity leave we were saving 37% of our monthly income. We are not saving now though, just living off DH's wage and my SMP, which just about covers outgoings.

20% seems a reasonable amount to save.

HarryTheHungryHippo · 13/08/2013 22:14

I Put 20% into an Isa every month then use this to pay for things like car insurance outright, my college course fees and as a fallback in case the washing machine or whatever breaks.
I also put £50 a month into an account for the dog instead of having pet insurance. If (touch wood) he stays fit and healthy needing only minor things for the rest of his life then ill have it saved there to pay for something else or to go towards the next dog, if not Its money I saved for him so I don't resent using it on him.
I'm on minimum wage I just cut back where I can to be able to save. I buy from charity shops, shop around online if I need anything plus look for discount vouchers, buy annual passes so days out are cheaper and use clubcard points. i also pay for things in full if I can rather than monthly to avoid interest and its make the monthly outgoings a bit smaller. I wish I had never bought a car on finance, apart from the mortgage it's my one debt and when I think of how much money a year it costs to run I would rather take the bus but I'm now stuck into a contract. High insight is a bugger.

80sMum · 13/08/2013 22:23

Currently saving about 65-70% of our joint income. Not far from retirement, so trying to build as much funds as possible.

Pennyacrossthehall · 13/08/2013 22:34

Very little.

Together we earn a substantial amount of money. However, after all the bills are paid, mortgage, food kids clothes etc etc, there is not a lot left at the end of each month.

We don't smoke or gamble and drink very little, so no evident "vices" to cut out. We don't have new / flash cars.

We do like to eat out (not Michelin, but more frequently than we should) and go to the movies. We spend a chunk of money on holidays each year.

And then the big one: we decided to move DS2 into private school a few years ago (very dyslexic). So that's where all the money that would be savings goes each month. Except that I know that if it wasn't that, we probably would have moved to a bigger house and it would just be paid to the mortgage instead . . .

olibeansmummy · 13/08/2013 22:38

25% but we're saving for something important :)

Original poster
SuckAtRelationships · 13/08/2013 23:05

Thanks all for your answers, that's great!

I am young. I have no mortgage (what I am putting money towards I guess, as well as a help for sons uni), no credit cards, no cars, no loans, no... anything really. I have never had enough money for any of these things. I don't drink at all. I don't party (starting to sounds like a big dull dudd here :o) and have very little in the way of treats (I don't even buy biscuits or crisps). I am stuck in my complete dole-living budget ways so keen to stay like that so I can save.

Whoever said about friend and talking to them - thankfully he is not like that at all. He just wants me to enjoy myself a bit after living so poor for so long. Which is sweet really, but I'm not minded like that.

Whoever said about saving for her dog - I also do this for my pets. It was necessary before as I couldn't afford even a sudden 30 quid vet bill so I had to put aside every month. Glad to see others do the same :)

OP posts:
Technotropic · 13/08/2013 23:36

You sound like a free agent and that's fantastic in an age of huge personal debt and materialism.

Being frugal is no bad thing and it really does pay to keep this attitude throughout your life, even when your salary increases. It's not about being tight but taking care of what you have.

All I would say though is make sure you treat yourself every now and then!

PorridgeBrain · 13/08/2013 23:44

20% which we try not to touch except for holidays + 4% for child savings + 6% for expenses such as paying for service, mot and insurance on 2 cars, birthday and Xmas presents + 5% mortgage overpay

You are doing the right thing as long as you are not living so frugally that its making you unhappy

DuelingFanjo · 13/08/2013 23:47

About 0%

Buttercup4 · 13/08/2013 23:52

27% pcm +8% into a pension

Nearly always best to dave as much as you can, if you are desperate you can dip into it. Wink

Buttercup4 · 13/08/2013 23:52

Dave?! Who on earth is Dave?! I clearly meant save!!

CoffeeandScones · 13/08/2013 23:52

0%. Give or take.

Maybe next year we'll start...

FreudiansSlipper · 13/08/2013 23:57

nothing at the moment

had a few thousand saved up and it has all gone on work that needed doing to my flat :(

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