How much should we be saving?

[settleforme]

Income is approx 5.5k pm (after tax)
Pensions are good
No mortgage/rent
No car payments
No debt
Two dc and very little in childcare.

Settle a dispute. How much should we be saving per month?

Save £2k a month and chuck it in a Total Market Index Fund so it makes you more money

You're in an extremely fortunate position compared to the vast majority of people. Surely it's simply a question of how you and your husband view priorities?

I'm your position is be donating a sizeable chunk to charity, you could transform many lives with that kind of wealth.

@EnidFrighten when you say sizeable chunk what do you mean? I donate to local food banks etc but not monetarily.
Our pensions are ok as I said but not AMAZING so I feel the need to save a portion for then too. As I said we are only mid 30's so we have many years to think off.
We may move house in the future but right now we are happy.

@ilovesooty we have similar priorities but I'm more of a worrier I suppose

Do you genuinely want advice from MN or is just to boast how financially fortunate you are ??

I'd set up a proper budget sheet.
Have set amounts going to lots of different pots eg birthday, holidays, Xmas, long term saving short term emergency pot, children's savings plus pots for future dc expenses, schools trips, when they do more expenses nights away with school, lessons, clubs, clothes.

I'd even open sipps for the dc! Self invested private pensions so they can have money for theirs retirement going with all that beautiful compound interest to build up for them.

(stock and shares of course)

Once you have done all of that see what's left. What's your weekend, fun spending? Your hobbies... Petrol etc.

After all of that you have your true free money. Then you have to factor in, the unexpected.

So for me, that's a brilliant primary school, rated outstanding and that worked for one dc, is failing the other. If I could put her in private with smaller classes etc I would move her in a flash.
So bear in mind the unexpected.

I would say at least 2k when it’s an expensive month like the summer and Christmas

When it’s a cheap month then 3k.

I would save into Isas first then look at other stuff.

I’d also have 10k + you can give the kids at 18 so they learn how to save or splurge money.

We’d be able to easily save 3.5k on that, if not 4K some months.

Our bills are also around 1.5k with no debt etc, but we have a mortgage & childcare of 2.7k on top of that. Our monthly income is about 7k, and we probably save about 2k of that pm.

How much to save can only ever be a personal decision.
You don’t need advice on that, you need advice on how to compromise with your husband.

Which might be the average of what each of you thinks you should save 🤣

Nobody here can tell you what’s right.

Do you genuinely want advice from MN or is just to boast how financially fortunate you are ??

Yes, this. These types of post - huge incomes, hand-wringing about how to spend it - are imo usually either thinly veiled boasts or total fantasy. Equally sad.

I don't for one second believe that a poster with the supposed earning potential of the op could genuinely be so financially dense that they need to ask on MN for advice on how much to save 😂

For those wasting time giving advice, catch on to yourselves!

@userwhatever01 yes right now it's 1.5 savings and I think we should make it 2-2.5k
Hubby is reluctant
We used to bring in a less so he would like to enjoy the money now too as such I suppose.

@lollipoprainbow I know how fortunate we are yes. Not fortunate that I have no parents left though( hence no mortgage) and I know is lovely that I had an inheritance but I would rather my family back. (I was an only child)

I’d be trying to save £2.5/3k a month given your circumstances.

Op do a proper budget.

Once you have that, you will have your "foundations", your in the dark at the moment. Once you can see, then decide where to put the extra.

You say you’re more of a worrier… is the compromise not £x per month that makes you feel secure, but a decision to achieve £y in savings and then you’re happy with his £z a month?

You bring in £5.5k per month, food and bills is £1,5k and you save 1.5k.
What the hell do you spunk £2.5 per month away on?

Op mumsnet is very strange about money I'd definitely put in the original op your fortunate because you have unfortunately lost your dp young

Op mumsnet is very strange about money I'd definitely put in the original op your fortunate because you have unfortunately lost your dp young

I sympathise with anyone who's been bereaved.

But a £5k + pm household income is already extremely 'fortunate', regardless of any other financial windfalls...

@Proudboomer holidays (we have a weekend every couple of months at a hotel as a family) clothes, eating out, gifts for family, I treat MIL a bit as I don't have my own dm to treat. She deserves it as she has always been very good to me.

Where has the OP said she's not fortunate? Some people make more money than others. Why can't some posters handle that?

Some people make more money than others. Why can't some posters handle that?

It's more a case of whether to believe it really. A couple with a large income are likely to be either very intelligent or very business minded or both.

Ime not many people who fall into those categories are genuinely so financially unaware that they need help from a forum on how to spend or save their money.

It seems like this is an ‘what should our spending level be’ question, because of the bereavement, you now find yourself without a mortgage payment, and so a lot of ‘spare’ money each month. You need permission in your head to spend it, but factoring in future costs. Fair enough.

So, at the time of retirement, you need (to be comfortable/prepared:

1. a paid for house (is it this one? Or a more expensive one? If so, save for the difference now, before you raise your lifestyle)
2. Pension/annuity/lump sum to draw from - this needs to be at a level to fund your lifestyle, plus more as a safety net/inflation. Online calculators can help you to get to this number. Then, work out how much you need to put away each month and raise your contributions to that level.
3. 3-6 months of living expenses in the bank as an emergency fund.
4. Future big costs for DC - school fees x2, university fees x2, weddings x2, house deposits x2. Decide how much you intend to give in each of these categories, add it up, divide by months and again, put this amount aside each month to meet these expenses
5. Future big costs for your family - new car? Extension? Move to a bigger house? Yearly overseas Holidays? Replace bathroom/hit water heater etc. Huge vet bill etc. Again, add up, divide by monthly income and save
6. Medical - good insurance and an extra pot to cover a real emergency (could be in your emergency fund).

If your current level of assets and current savings cover these categories, then I would raise my day-to-day spending level and not feel guilty. If not, I would make adjustments as necessary and see where that left the family spending.

It is nice to live a bit more comfortably now - something good to come out of your loss (I‘m sorry about that). But equally, you don’t want to nickel-and-dime your way to a less comfortable future, when you are in an excellent position to set your family up, and then your children and their families up for good financial futures, by removing some of those barriers (student loans and house deposits for DC). If you do it well, your decisions now could mean your children can use the money they saved, and save for their children’s student loans and house deposits too.

I'd try and save a good 2.5k from that every month. Maybe more.

Just seen that's what you aim for. We have a similar monthly income but a £1300 mortgage and childcare. We try to save 1.5k pcm. We are not big spenders though.

Save 4k

2k into long term savings and investments

1k in a slush fund - keep the slush fund maximum 12k. So when you spend on holiday or one of expenses top up the slush. When its back to 12k top up any extra into the long term.

500 each for personal savings/ personal spend.