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 what you like, it's not up to your husband.

@BernieBaby

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 sounds like they just can't decide how much to save, not how to save or what for.

5.5k take-home could be two people on 46k-ish after 5% pension contributions. So could be two teachers, or any other profession entirely unrelated to finance. My husband works for a bank and doesn't have a bloody clue.

I'd save around £3k a month, for a mixture of things. Have a car savings pot, a holiday pot, and a "we don't touch this unless necessary" pot. I'd probably go 20% / 20% / 60% between those.

Just save whatever you can really. No point wasting it. But then if you do want something you're fortunate enough to dip into your savings.

At least 2.5 k.

I think you need to figure out what you are saving for, and when you want to have it saved by.

For me it would be uni and house deposits for kids, pension, enough to cover a year’s expenses, slush fund for emergencies.

If you already have those covered then you are investing / wealth managing rather than saving.

Could you split it into long term savings and shorter term savings?
So, given you currently save 1.5k, could 1k go into something long term like stocks and shares ISA, then a further 1k into shorter term, accessible savings? Would DH be happier saving more if he could see some of it could be accessed easily?

We have had great sucess with adding half of each payrise to a savings direct debit. So if we get a pay rise (ok, not recently!) that means an extra £50/ month in a pay packet, we increase the savings transfer by £25.

I would travel over savings while we still can. Also, I guess you pay almost half in taxes so you already contribute a lot to other people’s lives. Unless, you want to work to help others.

@lollipoprainbow
You beat me to it lol

@BernieBaby

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.

OP is just having a difference of opinion with her DH regarding an appropriate quantum and was looking for outside opinions. She's not asking for financial advice. And honestly, if the 5.5K income is split between her and her DH, they're probably on less than 45K each. Very, very good salaries, but not killing it and not necessarily financially savy.

At least £3k a month

Thank you all. I'm going to chat to dh this evening and suggest we increase it every 2nd month maybe?

I would save 2000 into account for dc college fees plus house deposit, weddings etc. Keep in your name..not children's. Remember they might not get the good jobs you have and housing especially is so expensive. We are at that stage and you really like to help as much as possible. Then 1000 into regular savings for car/ holidays/ new furniture etc. But with the kind of money you earn you may find that you have money in your current account to pay for these when they arise..except car.

I'd save 2.5k from that.

That leaves you with 1.5k to cover everything beyond essentials.

We spend a lot less than you with two kids AND a £1k a month mortgage and I never feel I have to worry about money.

@fournonblondes

I would travel over savings while we still can. Also, I guess you pay almost half in taxes so you already contribute a lot to other people’s lives. Unless, you want to work to help others.

OP and her DH are both likely to be in the 20% tax band.

£5.5k per month would be two adults on around £45k each.

Wow I'm impressed you are mortgage free so early & have saved for dc deposits & unis on your salaries.

sorry just saw the inheritance update

Acknowledging the sad turn of events that put you into this position (my condolences) it's only right that you maximise your savings while you can because none of us can know what's round the corner.

You are in a very strong position. Take advantage.

A) Six months of "salary" saved is always recommended

And in no particular order

B) Personal pensions x2 - over and above your workplace pension

C) Stocks and shares ISAs x 2 (eg use this for university costs - among other things)

D) ISAs for the kids - but only enough to generate eg £3K - don't let a 16-18 year old access to excessive amounts that you will have no control over

E) Pensions for the kids - decades of growth for the small acorns to become enormous oak trees. They'll thank you for it (eventually)

F) Premium bonds up to 50K

In your position everything over £1500 is up for grabs. I'd personally aim for saving £3K leaving £1K to play with monthly.

At the very minimum I would say 50% and it sounds like you’re saving much more then that so there is a lot of scope for a new car and travel and continuing to save a very significant portion of your salaries

I would say 2.5k to 3k on a normal month
1.5k to 2k if there were a lot of outgoings in a partucular month.
Ps. Good luck to you both. you sound really fortunate/ in a good position generally!!! Our mortgage plus childcare will be costing us 5k pm next year!!!

Also I have a ‘Christmas’ account that I save £100 a month, just to take the sting out.

And not thought of dc pensions! Off to investigate !