To think saving half of all incoming money isn’t excessive?

[KeenOchreUser]

I was chatting with some friends about money recently (note to self: never again), and mentioned that I try to save half of everything I earn or receive, whether it’s my salary, bonuses, or monetary gifts. One friend said this was excessive and hinted that it might reflect some deeper issues with money!

I was so taken aback that I didn’t even know how to respond. To me, this seems like a responsible approach. AIBU to think my friend’s reaction was actually the over the top one here?

I think it's each to their own - I save half of my disposable income but not presents or anything like that.

It completely depends on how much you have coming in. If that rate causes you to live in deprivation, then it is unreasonable.

we have a high savings rate because our income is high and we can see retirement on the horizon. When we were younger and things were tighter, our savings rate was lower.

Do you live a very frugal lifestyle to accommodate that? Most people couldn't manage to save that proportion of their income.

And I suppose the wider question is what are you saving for?

Depends what you are saving for. But it does sound excessive and that you should enjoy life more

What are you saving it for out of interest? Also how? I struggle to save much of anything with house, kids, trying to have some quality of life

I think we need more information. If you are 25 living at home and saving for a house deposit great.
If you are 50; own your own home, what are you saving for?
Do you earn a huge salary so it’s easy or are you living extremely frugally for no real reason?

If you can afford it why not and great to create a nest egg, but if it’s leaving you struggling day to day in any way then no it isn’t wise.

i probably save ‘too much’ in that I will deprive myself now to save for a better future. I am aware of this issue I have and am trying to slowly unclench a bit and treat myself more

I think it’s far, far higher than most people could manage and still have a decent standard of living.

It’s not necessarily excessive. I can see a scenario where it would be part of an unhealthy relationship with money - some people don’t save money they hoard it - but that doesn’t mean that’s you.

What a horrible judgey comment your ‘friend’ made. Each to her own. Unless you are refusing to buy your round of drinks it is absolutely none of her business and we should be able to discuss things to learn from each other without judgement. Just ignore her if you are happy with your own lifestyle and future plans. I am the opposite and always think we don’t know what’s coming so need to enjoy today!

Seems wise to me unless you're 90 or something.

YABU for asking a useless question.

As others have said, it very much depends on circumstances and where you live. It would not be unreasonable to save 90% of your income if it is high enough that you can live on 10%, and you would like to retire very young. It would be pretty much unreasonable/impossible if you have three kids and you're living on income support.

If you can afford it I don't see the problem.

I've saved various amounts of my salary from 10% to 80%! It's all relative to what you can afford and works for your goals.

It's great if you can afford to do it.*
Most people can't.

For a LOT of people their income doesn't match their responsibilities, let alone the "fun" stuff, let alone savings. If you're not aware of that, you're either young or crass.

*and if you're saving half your income and expecting others to subsidise, (for example) your social life, don't expect that comment to go down well.

Otherwise, great.
Crack on

I wouldn’t say I’m living a frugal lifestyle necessarily - more like being mindful of where my money goes. I prioritise saving because I want to feel secure in the future and have options, whether it’s for emergencies, long-term goals, or just peace of mind.

Not sure I could afford to do that even if I wanted to.

Needs more info. What are your circs ?

Depends on your circumstances. You might be saving hard for a house deposit, or for your pension to make up for lost time. There will be times in your life when this will not be sustainable.

A lot of unnecessary projection here. Jesus.

Obviously it's essential to save a decent amount if possible, but half? All I'd say is that the future isn't guaranteed to any of us. If saving that much affects your enjoyment of life in the here and now, I'd call it excessive personally.

I’m a single woman without kids, so my situation is definitely different, which makes it easier for me to save a larger portion of my income.

I would say that saving 50% of your income is extremely unusual and I would be surprised if someone told me that. If you can do it without compromising a comfortable lifestyle then great, if you’re doing it and never having a meal out and never turning the heating on then maybe it’s not so great.

I couldn’t ever afford to save anywhere near as much as 50% of my income because my basic living expenses are more than that.

I’m 31, single, and live on my own, so my situation is a bit different. I don’t have a partner/kids to support, which gives me more flexibility with my finances. I’m not living on a huge salary, but I do try to prioritise saving where I can. I also try to live below my means and be frugal in certain areas - like cooking at home, limiting unnecessary expenses, and being mindful of my spending. I’m saving for a combination of things, including a future house purchase, emergencies, and just building financial security for myself.

I think it's weird to save half of monetary gifts (assuming that you mean gifts for occasions rather than inheritance).

If I gifted money to someone, I would want them to spend it on something that they enjoy. Aside from that, it sounds a bit anal to save precisely half of your gifted money!

Sounds very sensible if you can afford it.
If income is high enough/outgoings low, it is possible to save even more.
I can’t understand why you wouldn’t save if your could? You can spend it on a holiday, it could be rainy day money, to cover a period of sick leave, unexpected redundancy, retirement etc

Depending on where you are, plenty of people in that situation live comfortably on £20k so if you're earning above £40k it seems perfectly reasonable to live a £20k lifestyle along with very many others.

So sounds like you are saving for house. Once you are home owner, you probably wouldn't be able to keep this 50% savings up. And does the 50% include regular pension contributions?