How much of your salary do you save and why?

[SnugShaker]

I know everyone has different financial priorities and responsibilities, but I’ve been wondering lately how much other people set aside from their income. It seems like we’re always encouraged to save as much as possible, but realistically, everyone’s situations are so different, and sometimes it’s hard to know if you’re on the “right” track.

AIBU to wonder if most people save as much as they could (or should)? And if you’re comfortable sharing, how much of your salary do you manage to save each month? Do you have a specific goal in mind, or is it more about building a general safety net? I’d love to hear how others approach saving, especially with everything getting more expensive.

It s going to be much easier to save 10% of 10k a month with expenses of 4k
than 10% of 2k if your expenses add up to 1900 per month
So it depends on your earnings and expenses

I save nothing at the moment as I live hand to mouth.

I also partially live on the savings I accumulated whilst working for a horrible employer for 70-80 hours a week, so I had no time to spend anything.

Not sure what you are trying to achieve or understand by your post OP. Even when I was earning loads, I spoke about how I was saving loads because my income was precarious. If that had been my constant income, for a 40 hour week, I'm sure my outgoings would have expanded to meet it, and so I would have saved less.

Thus I would see my saving decisions as 'on track' in both cases. But my situations have nothing to do with yours, OP, so how does this help?

No mortgage so am able to save roughly £800 a month

Between £600 and £1000 per month usually. I'm not a high earner but I have relatively low outgoings so I try to make sure £600 is the minimum I save.

It's not for anything specific but it makes me feel safer to have savings. I've had to leave a job urgently before because I was bullied out and my mental heath was massively suffering so I like to have the funds to support myself in the event that happened again.

40% post tax. Split between SIPP and ISA. I salary sacrifice 20% into my pension.

~20% in long term savings and then ~20% into short term savings.

Currently around 30%, (that’s just me, DH doesn’t but he foots more of the bills as he earns a lot more) but it all goes in short term savings for Christmas, holidays etc. no long term savings as such but we both pay a good amount into our pension pots

Roughly 10% of whatever I've earned in the month; I don't have much to spare as a single renter in Central London and I'm still clearing the last of the Covid debt. My income varies as I'm self employed.

Split roughly three ways between pension, ISA and easy access savings (also known as the Shit Goes Wrong account).

I don’t earn much but I’m a big saver. I’m mortgage free so I put 27% into savings. No other reason than I really like the security of savings.

If there’s ever any whispers from the gov about means tested pensions, I will spend all my savings. I didn’t save to cancel out my SP.

By far not as much as other people on here are able to. I am a single parent who bought during covid times and with recent interest rates and price increases everywhere, some months I only save up for when my car eventually breaks down completely. That's 8% of my post-tax income. Then another 3% in mortgage overpayments, which I treat as fixed expenses, and between sod all and 15% per month in shit-going-wrong savings, depending on whether we have brithdays/ Christmas coming up. Sounds like far more than it is in reality.

£300 into a first direct regular saver and £150 in a NatWest regular saver. Then I deposit this into my isa when the year is up. I also got some back pay last year and sent that to my ISA . I’m not saving for anything in particular other than retirement. We are funding my daughter at university too and both give her £100 every week. I’m not a high earner at all but I prefer to save than spend my money on stuff. Money in the bank makes me happier than stuff. I do like to travel though. Don’t care about new cars etc

We save whatever’s left at the end of the month. Around 10% of net income. It goes into premium bonds and savings account. We ought to save much more but we are quite disorganised.

I'm a single parent of 2, earning just under 25k gross salary. I save 54% of my salary into my pension as I will be able to draw down from it when kids hit 18 so it doubles as savings for them for uni or starting out in life.

Roughly £2000 a month. That includes pension contributions.

About £600 of that goes to holidays - the rest is long term savings.

I think it's worth bearing in mind that people have different views of what 'savings' are - I am lucky enough to be able to 'save' 20% of my income, sometimes more - but most of that is dipped into for big expenses over time (holidays, home expenses like decorating or repairs, car maintenance). Also I bought my car outright so I set aside what I would otherwise pay as a car payment into the savings, so that I'll be able to buy outright again once I've driven it into the ground!

I don't know details of my friends finances, but I suspect in my friendship group, I'm probably one of the few who is able to save. Mainly because there's two of us working full time and no kids. Most of my friends either have children, or have one person working in a low paid or pay time job. I think being able to save at all is a luxury.

Im from a very low income background and used to put a lot of pressure on myself to save, whereas now Im a bit older I realise that nothing is guaranteed and that I want to be able to enjoy myself - I'm not materialistic but I have hobbies that cost money, I want to have the heating on, I want to eat out etc. As long as I can pay an unexpected bill I'm happy.

@Holdenfraught how on earth do you save 50% of a 25k salary with two kids?

About £700pcm, which is 1/5 of my salary after tax. This goes towards home improvements - most recently a new bathroom.

About half. Half of that into long term investments/ pensions which aren't touched. Half for holidays, school fees and home expenses.

I've never had enough left over to save anything, and was always thankful if the credit card debt didn't increase over the months. Most people I know have always been in the same position as me.

For quite a while I've put everything over and above the lower-rate tax threshold into a private pension so as to avoid paying any 40% tax. Over the years the amount saved has gone up a fair bit as the government has held the tax bands steady while wages have gone up with inflation.

I save about 40%.

Yeah i’m a quarter of my wage or maybe just over like 30%. There’s a savings account for household decor/repairs/emergencies. I always seperate savings for holidays/ fun too. I count the mortgage overpayment as saving too. I also pay into a pension (NHS).

Always transfer on payday to savings. Often have a bit left at the end of the month so that gets put into a pot somewhere.

Just us two and no kids ( 40s)

Im actually saving 62.5% of mine each month. Which gives me £250 a month to spend after bills. It's because we are saving for major house renovations next year.

However I have always saved everything I can and leave myself roughly £300 a month to spend on myself.

None apart from my workplace pension as then I couldn't afford to live.