If people actually save 20% of their income ?

[Designerenvy]

Just that really !
I read that it's recommended to save 20% on your income ( after tax)
Not sure I could ever manage that with 3 Dc's.
Does anyone manage it and if so....any tip to help me manage it !
Need to clear debts and save ..... TIA

You've answered your own question- clear debts. If you manage to get rid of them, then it becomes a much easier concept (I say concept as I haven't achieved it yet)! When I do- hopefully later this year, then it's eminently doable, as will be living within a more realistic budget and not paying out to credit cards and car. Remove them from the equation and it becomes much easier

Yes,but we have no debts and no mortgage so that helps massively. Like pp said pay off debts first and then I recommend you set up a DD into the savings for the same amount as debt payments after they are paid off.

Not a chance! We love pretty hand to mouth. But have 2 preschool kids and we have higher earning potential in the future.

We have a few loans, planning on clearing them but will take time .
We have no emergency fund or any real savings to speak of., cos every month brings a big bill or cost and then I don't manage to save anything cos of this. It's like I'm playing chase all the time iykwim.
I panic at times ( like now !l) th8nking about it .

It's pretty difficult to save early in life, I couldn't have done it. It gets easier as you get older unless you're on a very high income.

I imagine once our debts are clear then yes we'd be able to save 20% of our income.

But everyone's circumstances are different.
All depends on what they earn and the cost of living in the area they live.

I live in a relatively cheap area so rent and council tax is low and earn an ok wage so it is possible for me but if I earnt around the NMW I would definitely not be able to save much at all.

It is originally an American concept so it does need a little tweaking over here, especially in terms of pensions. The 20% should include money aside for retirement, so if you have a decent employer pension taken at source then your active post-tax savings don’t need to be the full 20%.

I worked out that we are saving just over 20% of of our take-home pay - that's a combination of mortgage overpayments and ISA saving. I don't know what it would be if pensions were included.
Definitely prioritise clearing debt - the interest you'll be paying on that will probably be more than you'd get on any cash savings.

Taking into account mortgage/bills/food/fuel/childcare costs, it can be difficult. However its not impossible.
Get a budget planner. Look at your monthly incomings and outgoings. Log down every expenditure. Where can you cut down?
Look at if and how you can change your mortgage and if you can get a better deal elsewhere.
Can you switch broadband/home insurance/mobile contracts/energy supplier for a better deal?
Those small changes can amount to a big change overall.
We saved an extra 30 a month by switching landline and broadband 2 months ago.
We saved an extra 25 a month by lowering our sim only contracts.
We stopped using sky and use Netflix/iplayer instead so have an extra 50 a month.
DH switched his vehicle insurance with work and now pays 120 less a month (!!!)
Thats 225 a month.
Little changes matter.

It completely depends where you live (and how high your mortgage and rent costs are), how much you earn in the first place and what debt you have. It's a good proportion to aim for, or even save more if you're able to afford it, but I don't think it's possible for a lot of people. A lot of people on very low incomes just can't save anything, sometimes it's a struggle to pay for what you absolutely have to. If you can't save 20% or a regular amount, i think it's an idea to aim for having a rainy day fund that will cover emergencies, however long that takes to accumulate.

I think a lot of people could in principle. The difficulty is when you get used to a certain level of income (you choose your house based on using your full income, you sign up to clubs, you get used to buying clothes from certain shops, going out at the weekends, buying certain foods on your weekly shop) that scaling back seems difficult. I'm sure if your income suddenly dropped by 20% you would somehow manage (even if it meant moving and adapting). Obviously this doesn't apply to people who really are living on the breadline.

That's not meant to be judgemental by the way. We do save a lot of our income at the moment but that's because we had a sudden jump in come (change of jobs with literally 3 x salary). Before that we technically probably could have saved 20% but didn't.

We save probably about 12% but most of that is for annual expense, like car insurance, etc. When the mortgage is repaid we will easily be able to do it, but that is not for another 28 years. We do both put into savings, and 8% into our pensions, and from September when I have finished repaying my tax credits overpayment we will use that to overpay the mortgage.

Between us we pay out £600 per month in child support which will continue for the next 15 years. Once that has finished it'll be time to plough it into the mortgage and pension.

Trouble is there is always something to spend it on, this month it's a replacement boiler.

I save about 40% of mine.

I had debt years ago. I (eventually!) cleared it and started saving what I had been paying to service the debt into a 7-day notice account.

I have a direct debit set-up to coincide with payday so that I have money that goes in to my savings account on the day I’m paid. I never really “see” it as it comes out at the same time as my salary goes in, so it makes it easy to put it away.

I’m lucky also that my company pays an annual pay increase, and I’ve had some promotions. I have a figure that I need to live on (that can be adjusted every now and then if cost of living has increased etc) so any increase that goes above that is added to my savings direct debit. That way, I’m still living on the same amount of money, but saving more.

Lastly, husband and I work for different companies but, coincidentally, we both get bonuses that are paid out during the same month. We agree in advance what that pot will be used for. Last year, we had some work done to the house so it went towards that. This year, it’ll be combined with some money out of savings to pay a lump sum off our mortgage. We’ll continue paying the same amount each month, but the term will reduce by four years because of the lump sum. It’s the same principle as I use for savings- establish what you can live comfortably/happily on, and use the rest for savings/investments etc.

I know not everyone is in the position of a salary increase/bonus every year but I was able to save before having a job that offered this, and when I was on a much lower salary. Direct debit on payday has always worked for me.

I do know, but couldn’t when I had young DCs. I would try to save a bit to build up an emergency fund. I’ve always had one that equals a month’s salary. Then work on paying off your debts. And every time you pay off one transfer that instalment amount on to another etc. After you’ve paid them off keep that amount as a regular saving. You’ll be surprised how quickly you can build a nice pot for really important (to you and your family) things.

No, I couldn’t due to cost of living, our rent is really high and we live in a one bed flat - not willing to live in a studio to save. In a few years it will probably be achievable then. We do save though, just a realistic amount for us

I always save between 15% and 20% a month, depends how much i have put on my credit card the month before as pay that off in full every month

My Adult DD lives with me, she was managing it until the driving lessons started.

She does sometimes put 10% away, but to do that consistently she wouldn't have any sort of social life and I'm not talking big nights out. She will have Student debt.

My middle DD (two young children) can't. She can save up for the summer holidays starting now, then Christmas, but is playing catch up.

My eldest does, but house repairs and then her holidays take nearly all of it. She had to buy a fixer upper to get on the housing ladder.

I tend to need something in sight. I've got a savings account for a holiday I want in nearly two years. I have about £800 for a replacement appliance, separately.

"When the mortgage is repaid we will easily be able to do it, but that is not for another 28 years."

I'm mortgage free, but I'll need a new kitchen and bathroom within five years, so whilst you do save money, of course, you need to calculate your borrowing in regards to retirement etc.

You are never fully sorted unless you are an above a middle earner and your children manage the same. I'm having to help out my DD with her children, she's a LP and has been hit hard by UC. Whilst part supporting my youngest. Brexit and Austerity is destroying our City and employment.

Being a Carer for my Mum, meant I couldn't take on extra hours, she died three years ago.

I know lots of people financially helping out family.

It is partly a matter of luck, or a stuff everyone else attitude.

No. We don't have a mortgage or debts (due to circumstances not our great financial decision making), but we just can't seem to save anyhthing. We both have relatively low incomes - him £25k and me £15k with little chance of improvement there, and we have 2 teenage kids. We should be able to make changes and save. It does bother me. We are not like one of those families on the telly with zillions of clothes and hobbies and nights out and take aways and expensive tastes. I don't know where it all goes. Except that I do like a nice holiday at least once or twice a year.

There are a lot of 'we' amongst the savers, it's very different if your single and flat rents aren't much lower than larger properties.

What I did about ten years ago was set up standing orders to save money which I increased each time I got a pay rise. It effectively removes the feeling that you have more money to spend. Mostly saving around 22-25% a year. This is the reason I still have an older car and a small flat.

Fred Flintstone you didn't sound judgemental at all, but you made a very valuable point, if our salary was cut by 20% we would have to survive and cope.
We took a big decrease about 12 years ago, when I went part time and we did adjust but still didn't manage to save.
I suppose my first priority should be an emergency fund and work from there.
Thanks everyone, glad to know I'm not alone, and I suppose when kids are older we will save more but I'd like to start now, even small steps in the right direction will help I'm sure .

Yes but we have no debt aside from our mortgage and DC still quite young

I currently save 30% but I have no kids and no debt. I'm actually saving it for IUI treatment as I don't qualify for NHS funding.

I'm well aware that once I'm paying for a young child I won't be able to keep up my current rate though.

Not a hope in hell for me. Paying off my debts is more important at the moment. I do put a little bit into each of the DC savings each month though