Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

How much money should you have saved by 26?

27 replies

Lottegirl · 13/01/2015 10:22

I am 26 years old and started a graduate job this year. Before that I have been in education and had 2 very low paid jobs. As a result I have approx. 12k savings.

I am worried that this figure is far below average for others my age.

My second concern is that I will never get on the property ladder. I am currently trying to save about 300 pounds a month...but how is that going to get me anywhere in terms of house buying?

In about a year I should have an increase in salary to around 32k. I am worried I am left behind and have no security.

Any advice welcome.

OP posts:
MaelstromOfLunacy · 13/01/2015 10:24

I am 27, earn £15,000, and have no savings. You sound like you're doing very well to me!

noitsbecky · 13/01/2015 10:29

Dsis is 22, on £27k and is saving about £300 per month.

Rent in London throws a spanner in the works. She'd be able to get a mortgage if she was still living where we were born.

I think you have more savings that the average 20-something in London. Don't know about the rest of the country.

FelixFelix · 13/01/2015 10:32

Sounds like you're doing well to me. I am 24 and DP is 25 and we have 0 savings!

Wellieswithaholein · 13/01/2015 11:01

At 26 I had about £300 in savings because I had spent a few years travelling, then come back, saved up and bought my first house at 24.
I then concentrated on building up my savings.

TinklyLittleLaugh · 13/01/2015 11:07

Saving when I was young and child free really set me up for the future. I bought my flat just befor property went crazy. Only one of my friends did the same, the rest used to rib us for not buying designer this and that.

I have never really thought about it but, out of that circle, only me and that one friend are mortgage free now at 50.

Inthedarkaboutfashion · 13/01/2015 11:15

I didn't have any savings when I was 26, but I did have a mortgage and a chunk of equity. Different people will have different levels of savings and different levels of assets so 'how much savings should a 26 year old have' isn't a question that can be answered.
There are lots of 26 year olds with no savings and no assets because they haven't been lucky enough to have enough I come to save.
£12k is enough for a property deposit in some areas but not other areas.

Inthedarkaboutfashion · 13/01/2015 11:18

Like tinkly my friends mocked me for buying a property young instead of spending my money on leisure and instant enjoyment. I will be mortgage free in my early forties whilst many of my mid thirty something friends are either just getting on the property ladder and will be paying their mortgages until retirement age or have no chance of getting on the property ladder.

Ragwort · 13/01/2015 11:33

I think you are doing extremely well.

Like Tinkly and Inthedark I was able to get my first mortgage in my mid 20s and was mortgage free by my early 40s - it's a great feeling Smile.

Also,, DH and I never 'stretched' ourselves mortgage wise - many of our friends had bigger, more expensive properties but we always ensured that we only needed one salary to pay the mortgage. We've done alright, a very nice home and now have a small buy to let property Blush.

TestingTestingWonTooFree · 13/01/2015 17:20

Sounds ok to me, particularly the amount you're going to save over the next year. DH and I bought our first home when he was 37 and I was 29.8. Whether you'll be able to buy a home will depend on what you're looking for, where, and whether you're going it alone. Home ownership is not the holy grail of happiness.

addictedtosugar · 13/01/2015 19:49

I think saving 12k when you've only just graduated is fantastic going, and from conversations around me sometimes at work, I'd say you've got more than most (and were 10 years older than you).

£300/month is 3.6k/year. While it will be slow going on saving a house deposit, the initial lump you've got will be a big help.

Where do you live (roughly)? 12k round here would get you a 10% deposit on a 2 bed terrace in a decent area or a 3 bed semi in a reasonable area. If you were further south, I imagine it wouldn't go as far.

You've got a great attitude, and as you get pay rises, you'll be able to save more (we put half of each pay rise onto the savings standing order). Keep it up.

Taffeta · 13/01/2015 19:54

When I was 26, 20 years ago holy fuck where did that time go? I had £2,500 saved, which paid for a 5% deposit on my first flat.

NotGoingOut17 · 13/01/2015 19:55

At 26 I had no savings & was on 25k so sounds like you are doing well to me. At 31 I am financially secure but only owing to inheritance, had it not been for this, I would have still had just my 1k savings (which would probably have been spent by time). I am not on 32k now and may never be.

I think you are doing fantastic - keep it up and I am sure you will get there

NotGoingOut17 · 13/01/2015 19:58

I am one of those people that spent my money on leisure and having fun, my attitude has changed though - I have made some sensible decisions recently including paying off debt i accrued at 24 when i was more reckless

Sendo · 13/01/2015 20:13

You're probably doing better than most. At your age (quite some time ago) , I had spent my savings putting myself through my Masters. DH was working FT and we spent another year or so saving for a house deposit. We put down a £10K deposit on a £100K property. We just bought where we could afford (not a terribly nice area but you've got to start somewhere!)

Pensionerpeep · 13/01/2015 23:55

This reply has been deleted

Message withdrawn at poster's request.

blahbloodyblah · 14/01/2015 00:19

I reckon most 26 year olds won't have had the luxury of being able to save £12,000 what with how expensive rent is etc. All young people I know spend a fortune on just day to day costs.

You're doing fine, stop worrying.

TalkinPeace · 14/01/2015 17:35

I did not start to save until I was 40.

ssd · 14/01/2015 18:40

how you saved that amount on 2 low paid jobs is beyond me

is it saved or inherited?

originalusernamefail · 14/01/2015 18:43

I earn around 27k am 30 years old. I have no savings ( technically 10k in the hole at the bank of mum and dadBlush). I think you are doing amazingly well - any tips?

Original poster
Lottegirl · 15/01/2015 10:39

Thanks for everyone's advice/stories.

I was given 3k as an opening goodwill gesture which boosted my savings. When I worked in my 2 part time jobs I saved 80 percent of it as I lived at home and paid no rent, so that allowed me so save around 6k over a year. Then since working as a waitress around age 15, I saved a few hundered each year. In between that I have paid off two overrafts too, which were around 3k.

I just feel like I will never get on the propety ladder, and it bothers me a lot as I see it as a huge form of secuity.

OP posts:
5446 · 15/01/2015 10:46

I'm 25 and think you are doing well.

I've currently got about 30k saved, although 6k of that is going towards my Masters. I have been in quite a unique position of working abroad in low tax countries and not paying rent

I know from speaking to friends who are in London on grad schemes or similar and have absolutely no savings.

You never know what will happen in the future, you may decide to move out of London which will make it easier to get on the property ladder.

Pensionerpeep · 15/01/2015 16:52

This reply has been deleted

Message withdrawn at poster's request.

minicar · 16/01/2015 12:53

You are doing good. Even thinking about getting on the ladder at this age is good. Some of my colleagues at 35 are still renting and with a small family, saving for a deposit is difficult. Just buy where you can afford. Most probably it will not be negative equity and when it comes to buying a proper home, you would already be a home buyer with a track record. May help in get a bigger mortgage in future and if the property prices go up, you have the leverage and can raise equity from it.

fluffapuss · 31/01/2015 16:23

Hello Lottie

Well done & keep saving !

Some people are spenders, some are savers

Houses, pensions, emergency savings, holidays, cars, families, there is always something to buy or save for

I hope you have got your savings in highest interest savings account eg ISA which are tax free or something like Santander 123 current account

check here for interest rates and also some saving forums to join www.moneysavingexpert.com

I would start looking to see how much you would need in your area to buy a house. How much deposit, plus solicitor fees, stamp duty etc
Obviously some parts of the UK are cheaper than others

I would also investigate how much you expect to pay each month for a mortgage, there should be some calculators on the internet - but it is better than paying rent

I heard this on the radio seems too good to be true, but I have not read the small print ! www.galliardhomes.com/latest-offers/offer/london-apartments-from-175000-with-stamp-duty-paid-and-free-furniture

Good luck & I hope you reach your goal soon

CogitoErgoSometimes · 31/01/2015 17:41

There's no 'should' when it comes to savings because it depends on what you earn and what your objectives are. If your objective is to buy a property and £12000 isn't enough to put down as a deposit then you'll need to save more. If all you wanted was enough of a buffer to see you through a job loss or other crisis then £12000 should be plenty.

So my suggestion is to work out how much deposit you need and pare your spending to the bone so that you reach your target more quickly. Property rarely drops in value.