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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think living comfortably means you're saving at least 20% of your salary?

53 replies

rosiesfarm · 31/03/2023 22:42

Wasn't sure how to title this but don't want to write the whole backstory as I worry it will be identifying but AIBU to think if someone claims to be "living comfortably" it's not having nothing of your salary left at the end of the month, even if you didn't have to think about your spending?

I'd say if you were saving 20% and then it was that way on top, that's living comfortably, but just affording your current lifestyle, but without saving doesn't mean living comfortably to me? Just curious if most people feel this way

OP posts:
AuntiePhoenixClaw · 31/03/2023 22:44

I’m unsure about percentages but a comfortable life means all you need and want plus money left over for savings.

Newyeardietstartstomorrow · 31/03/2023 22:45

It depends on your age. It's pointless saving whilst you have a large mortgage you are paying interest on. Once the mortgage is paid you need to be paying about 20% into a pension.

Butterflyfluff · 31/03/2023 22:46

I think, right now, if you are getting by then you’re doing OK

WTF is the point if a stealth boast like this?

mycoffeecup · 31/03/2023 22:47

Newyeardietstartstomorrow · 31/03/2023 22:45

It depends on your age. It's pointless saving whilst you have a large mortgage you are paying interest on. Once the mortgage is paid you need to be paying about 20% into a pension.

Are you suggesting that until your mortgage is paid off there's no point having a pension or any cash in the bank? I'd say there's not much point having a mortgaged house unless you have enough in the bank to fix the roof if it starts to leak. And if you don't start on a pension a bit younger than when the mortgage is paid, you're going to have a very frugal old age.

Original poster
rosiesfarm · 31/03/2023 22:47

What's a stealth boast?

I just want to say I wouldn't consider myself living comfortably, I have what I want and need but I can only save if I'm not buying a bunch of the wants that month.

OP posts:
owiz · 31/03/2023 22:48

Define saving, pensions included in that? Short term/long term savings?

DelurkingAJ · 31/03/2023 22:49

Depends on how much 20% is, surely? Isn’t the aim to have 6 months take home in savings and then be sensible with the rest? Also depends how much you could trim if you needed to. We could save 20% by having no holidays or treats but that would be madness when we have 6 months squirrelled away and no other debt (save the mortgage).

owiz · 31/03/2023 22:50

It depends on your age. It's pointless saving whilst you have a large mortgage you are paying interest on. Once the mortgage is paid you need to be paying about 20% into a pension.

That's the worst financial "advice" I've ever heard!

BernadetteRostankowskiWolowitz · 31/03/2023 22:53

We do a "formal" check of our accounts on my payday every month (keep an eye on ingoing and outgoing throughout the month)

This proper check is us saying "what was the total balance last month" and comparing it to today's total balance. As long as todays is more than the same days last month we are fine.

Some months it's much more, if we have no trips/clothes/birthdays/etc. Some months we barely break even but have purchased flights or booked a mini break etc.

We are comfortable in as much as our costs < income and we have no debt. But we don't proactively save, and probably "carry" three months salary in our accounts roughly.

GodSaveTheClean · 31/03/2023 22:53

By saving do you also mean pensions etc?

FunnysInLaJardin · 31/03/2023 22:56

ha,ha,ha. Very funny @rosiesfarm .

I do not save £20,000 pa. we need all our income to live! Can't imagine any scenario where you could save 20% of your salary with normal outgoings and no other help tbh!

Original poster
rosiesfarm · 31/03/2023 22:56

Okay 20% was very specific and not necessarily meaning to be. I'd say you should be able to consistently save each month.

Basically I said to my sister that I had to watch what I was spending this month because the pets all have their yearly vaccine next month and so I wanted to be able to put a bit from this month for that. She went off on a bit of a rant and finished with the fact I live such a comfortable life? My sister is in a very different financial situation to me (can't work, single mum of 3) but I simply wouldn't class my situation as living comfortably either. I can just afford my lifestyle, with small mounts of savings if I cut back to cover extra bits

OP posts:
FunnysInLaJardin · 31/03/2023 22:58

oh and we live very comfortably, but do not indulge at all. Provided the house is warm and we have food etc we are fine

FunnysInLaJardin · 31/03/2023 22:59

that's a bit different @rosiesfarm . We save around £3k a month for that sort of stuff, just not for random just in case stuff

Frenchfancy · 31/03/2023 22:59

Yabu. To me living a comfortable life means going to sleep at night without any financial worries. You don't need to save 20% of your income to do that.

BernadetteRostankowskiWolowitz · 31/03/2023 22:59

I think if you know she struggles financially then it may be best not to discuss your finances with her. Is it possible she couldn't even afford to own a pet? Therefore you being able to afford to have pets is you living comfortably?

Also, if she actually cant cut back any more, then being able to cut back is also comfortable.

Albiboba · 31/03/2023 23:01

but I simply wouldn't class my situation as living comfortably either. I can just afford my lifestyle, with small mounts of savings if I cut back to cover extra bit

This isn’t the same as not being able to save though. You say you also don’t really think about your spending.
Someone could earn 100k and spent all just about affording their ‘lifestyle’ but it wouldn’t mean they didn’t have a comfortable income.

Albiboba · 31/03/2023 23:04

FunnysInLaJardin · 31/03/2023 22:59

that's a bit different @rosiesfarm . We save around £3k a month for that sort of stuff, just not for random just in case stuff

You put aside 3k a month for essentially sinking fund purchases and think you don’t indulge at all in life?

Original poster
rosiesfarm · 31/03/2023 23:09

I don't have to think about my spending, if I want something reasonable, I can buy it but if I wanted a new TV or a holiday, I need to cut back to save for that or if I wanted to consistently save for whatever, I'd have to probably not just buy whatever (smaller things)

OP posts:
LeggyLinda · 31/03/2023 23:11

I don’t think “saving” has much to do with it to be honest.
I think “living comfortably” means you can afford a decent lifestyle that meets your needs with money left over.
What you do with that leftover money is up to you. You may save it, invest it, go on extra holidays or spend longer in pubs, restaurants and theatres. Whatever.

some people save loads on a mediocre income and suffer now for the promise of a better future. Some do the opposite. I suppose a happy medium is best logically. But people aren’t logical and different people hit different struggle points at different times in their lives.

A comfortable life is very objective and saving for a more comfortable life in the future; or reducing extra comfort now to provide a cushion for the future is something that is very individual.

AngryBirdsNoMore · 31/03/2023 23:13

DelurkingAJ · 31/03/2023 22:49

Depends on how much 20% is, surely? Isn’t the aim to have 6 months take home in savings and then be sensible with the rest? Also depends how much you could trim if you needed to. We could save 20% by having no holidays or treats but that would be madness when we have 6 months squirrelled away and no other debt (save the mortgage).

Six months!! Bloody hell.

tourdefrance · 31/03/2023 23:13

Interesting idea.

Was debating with DP why some people seem to have more holidays and he said they probably aren’t putting much into their pension or overpaying their mortgage (we do both). Both of these are sort of saving, mortgage is flexible so we could take the overpayment out if needed.

Comfortable for me means not really having to think about if you can afford something. If you can spend as you wish and still save a substantial percentage you are probably in the top few percent in the country.

Sparklesocks · 31/03/2023 23:15

I think it means different things to different people, depends on your income/outgoings/debts/savings etc. There are some people who consider themselves comfortable if they cover their bills each month and have a bit leftover to play with, whereas others who would feel stressed if they hadn’t saved X amount. I don’t know if your reach a general consensus, money and how you spend it can be very personal.

Liorae · 31/03/2023 23:24

I've been through layoffs twice. I wouldn't be comfortable with less than 6 months expenses that i could access. The first time I was laid off i had very little savings, and the stress was enormous. I had to take the first awful job I was offered to just about pay the rent. Lesson learned.

Caz1960 · 31/03/2023 23:46

I think 6 month buffer is a fairly standard recommendation. Not sure if it is achievable for all but is definitely a prerequisite to a comfortable life if you ask me. But I suppose it depends on the job security you have I suppose

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