Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Flip

1 2 3 4 5

Original poster

If people actually save 20% of their income ?

117 replies

Designerenvy · 10/02/2019 11:21

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

OP posts:

Viciousrooster · 10/02/2019 13:39

Save 30% net salary, and have about 30% gross salary going into a pension, rising to about 35% next year (I contribute 10%, employer about 25%).

BertieBotts · 10/02/2019 13:41

Martin Lewis (moneysavingexpert) says pay down debts before saving, unless you can't easily get more credit, then build a small emergency fund and after that save.

I quite like this priority guide: imgur.com/BfHzwr9

Definitely only look 2 or so steps ahead of where you are. FWIW I've not done the later steps so no idea if they are goodbut the beginning is good.

Then I like the principles of the You Need A Budget approach. I don't pay for the software but I use the principles to create my own budget.

20% would be too much for me to dedicate to savings as well, but that doesn't mean it's pointless to save. A trick I like to build up savings is to work out an amount of money per month you wouldn't miss. Think about how cheap something would need to be for you to buy it without even thinking - if you're on a low income with small DC that might only be 50p, but that's OK. Or if you have a bit more disposable income it might be more like £5. Start putting away that 50p, or £5, monthly and after 3 -6 months of living without it assess again if there's a small amount you wouldn't miss, now add it to that initial amount, and repeat.

Judystilldreamsofhorses · 10/02/2019 13:45

Our household income dropped by over 50% when DP was made redundant a couple of years ago, and had almost two years not working. We managed, but it wiped out our savings. Now he’s working again, and we are saving, but something always crops up - this month the cat has needed hugely expensive dental treatment, which wasn’t covered by our pet insurance. I am guilty of spending what I earn, and need to change that! We made a lot of small changes when we were on just my salary - things like cutting right down on meat, for example - and have kept those up.

UnderMajorDomoMinor · 10/02/2019 13:47

Under a certain amount of pay I think this is v hard.

dinkydolphin · 10/02/2019 13:50

I save 59% of my income every month. I rent and still enjoy nice things but, I am super smart about how I save my money.

Babyroobs · 10/02/2019 13:50

I deal with a lot of older people and it's surprising how many have nothing and are going into retirement with nothing at all .

RomanyQueen1 · 10/02/2019 13:57

We don't have any debt but only one very small income.
Yes, we save about 20% and in the past saved our tc and cb and when we could imagined paying childcare and saved this amount too.
No pension as don't trust them, but savings and investment in property for when we need it.

boomfloom · 10/02/2019 14:01

We save nearly 20% of our income and we live on the breadline. I treat savings as any other bill. It simply needs to be set aside no matter what. I can write out how we achieve that but didn't want to spam your thread.

My tip would be to use a benefits calculator and calculate your benefit entitlement in case both you and your husband lost your jobs. First, track what you're actually spending your money on right now. I'm sure it seems that you don't waste money but we all do. Then, do a month-long breadline challenge. It will allow you to re-evaluate what you're doing with your money and the limited time-span means it wouldn't be too onerous. You could make it coincide with Lent - the deprivation will make Easter all the more festive.

Track every single thing you buy and decide whether for instance spending X amount on cheese and Y amount on sweets a month is reasonable to you and how it could be cut. For example, you might decide to halve your cheese budget and buy cheaper sweets (and less of them). It can be done but requires a lot of self-awareness and discipline. The peace of mind that comes with having savings is priceless, though.

TheMammothHunters · 10/02/2019 14:03

I think we do but it’s mortgage overpayment and pension payments. I pay extra into my pension annually to reduce my tax burden. This on my accountant’s advice- it’s not dodgy.
I don’t save into ISAs as much as I used to but I earn less now due to being PT.

OublietteBravo · 10/02/2019 14:04

Not quite. I’ve just worked it out and I save 17% of my net income each month (although once you take into account that I save 15% of my gross income into my pension I’m probably just about there).

Actually, if I include the amount I save for the DC, then I’m just over 20% of net income as my saving level.

No way I could’ve done it when the DC were small though (they’re both teenagers).

I didn’t have a pension until I was 30, so I’m still making up for lost time.

JasperKarat · 10/02/2019 14:09

Our joint income when I'm not on mat leave is around £75000 and we save £1000-£1250 a month, we have deliberately chosen to save twenty percent but it seems it works out that way. We have a fair sized mortgage and don't live a penny pinching lifestyle to save that amount, but we're very debt adverse so we're not paying off anything other than that.

JasperKarat · 10/02/2019 14:10

That's the amount of cash we save each month we both pay into good pensions too

JasperKarat · 10/02/2019 14:12

We only have one DC though, although the above doesn't include what we save for him each month (£100) because that money isn't ours it's his.

leghairdontcare · 10/02/2019 14:12

If it includes pensions then we do that easily thanks to good employer contributions. Personal savings it's more about 10%.

WingingWonder · 10/02/2019 14:15

I am a high earner yet mortgage (pretty average nothing considered too ridiculous)
Childcare
Pension minimums
If I then took 20% on top there would be no food or disposeable left at all. I’m all for saving but having seen 2 relatives die at 60 and then have inheritance tax (from a modest house in upwardly mobile area) triggered and be a whole other burden for people, I’m intending to take the save for now approach- ie pay off mortgage by 50, and save each year for a nice holiday, but not much more aside. When mortgage free will continue saving the same amount until retirement (whatever that is then 70?) and that will support older life.
My childcare is high, when we don’t need to pay for that intend to save sep for kids should they choose to go to uni we can help them a bit

Original poster

Designerenvy · 10/02/2019 14:56

boomfloom the idea of a bread line challenge sounds good. It might just let me see where I'm wasting money.
I've got more savvy lately ( in the past month ) and the kids are now heating " No, that's not in the budget"... they were a bit taken back at the start, but definitely getting used to hearing it more and more.
I usually just spend what I have, but tgat needs to change drastically and that includes a lot of " No, not this month" to the kids.!

OP posts:

WingingWonder · 10/02/2019 15:01

Like the ‘notnin the budget’ Line being shared. Ours don’t get things outside of Christmas and birthday. Was what I said/thought- then realised the magazines, stickers, tat toys, happy meals, cafe trips, new kit when needed for hobbies etc- all just appeared. I have no qualms over spending this on them but actually need them to appreciate more than this isn’t just to be taken for granted. I am currently at TU mum on the amount of unplayed with toys we have and how lucky they are, it’s starting to take impact,
as someone who grew up knowing we had ‘no money’ and not to ask- but in hindsight realise we were actually pretty comfortable but it was all saved - because my dad was poor and terrified of never having anything/ have struggled to find a balance that makes us all happy

WingingWonder · 10/02/2019 15:02

TU- autocorrect for rants!!

SciFiScream · 10/02/2019 15:08

I'm paying 20% of my monthly salary into my pension each month. Well, 14% of my salary and my employers pay 6%. I also save an additional £32 into another pension.
We over pay our mortgage and save for Christmas too.
I also save £10 per month into a Virgin money account but I only do that to get access to the Virgin Money Lounges

Original poster

Designerenvy · 10/02/2019 15:09

I know can save, cos when I was much younger, I saved like mad for our house deposit, wedding and honeymoon. We didn't need to borrow a penny !
So, I know having 3 kids is expensive but I need to get sorted !
I used to get as little buzz out of saving and seeing the balance each month increase. I need to get back to that way of thinking !
I know, I'll never be able to save as much as I did then, but I can save within my means and just have money there for the emergencies that pop up, and the big recurring bills , like oil, insurance , car service etc, instead of relying on monthly income to cover these costs.

OP posts:

m0therofdragons · 10/02/2019 15:09

Yes, we save average of 20% - some months more and some less. Last month we saved 35% but this month it'll be more like 15%.

m0therofdragons · 10/02/2019 15:11

We also have 3dc and mortgage but didn't take maximum loan amount available as we wanted to be comfortable financially.

Original poster

Designerenvy · 10/02/2019 15:12

Yes motherofdragons i shoukd be able to do it too.
It'll take time to get on track, but I'm motivated and determined now !!!

OP posts:

KnitterOfSocks · 10/02/2019 15:14

I put away about 15% of our cash each month. However, DH is self employed so a chunk of this goes to the HMRC twice a year. I also am in the council pension scheme which is 6% of my income but its career average salary so that will be worth a shit load.

CottonSock · 10/02/2019 15:20

I save nothing as spare money overpays mortgage. We both have good pensions though. We are well enough off to cover emergencies by cutting back. In a dire situation I could ask my parents. We have sickness cover on our jobs, generous sick pay, life insurance. If dh were to get sacked or something we would be in the shit, but I don't plan for unprobables.

Flip

1 2 3 4 5