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Original poster

How much should I be saving?

52 replies

mytartanscarf · 08/03/2015 12:01

I earn approximately £600 p/w (it's approximate due to two zero hour contract jobs)

How much should I be saving monthly?

OP posts:
Earlybird · 08/03/2015 12:02

What are your monthly expenses?

Original poster
mytartanscarf · 08/03/2015 12:05

This is what I find difficult at times to work out as they vary considerably.

I'm trying to make cutbacks.

Mobile phone (quite reliant on this for internet as well as phone calls)
Car (petrol and maintenance)
Food
Gym membership
I donate to two charities - both £10
Laundry!

OP posts:
OrinocoTheWomble · 08/03/2015 12:14

Do you have:
Rent/mortgage
House/contents insurance
Life assurance
Gas/Electricity/Water/TV License/Council Tax

Ragwort · 08/03/2015 12:18

Impossible to say without knowing a lot of detail about your expenses - do you find you have a lot of money 'left over' at the end of the month, are you conscious that you spend a lot on 'treats' that you wouldn't really miss if you didn't buy?

I save approx one third of my income - but I am fortunate in that we have paid off our mortgage and have no childcare expenses. I could probably save a lot more if I was prepared to cut back on coffees out/take aways/wine etc. But I am comfortable with the level of savings I already have.

OrinocoTheWomble · 08/03/2015 12:21

Also, you should start thinking of your income as 'monthly'.
What's the best you take home in a month.
What's the worst you take home in a month.
Can you always survive on the worst month income? Then you could always save the difference between best and worst.
You need to write down ALL your outgoings: monthly, weekly, annual etc.
You won't be able to make a proper budget until you have a list of all of your outgoings.

Olivo · 08/03/2015 12:24

We save around 5% of our income each month into a long term plan, designed as either a cushion should we need it, or hopefully, for Dc's university etc. we also save about another 5% to have for holidays plus another maybe 2% for the emergencies fund ( appliances breaking, car repairs etc) we don't really have spare for treats, any unspent goes into our savings. We have 2 DC to pay for ( school fees, wrap around care too) and a big mortgage to pay for. You need to work out your expenses and go from there.

I remember when I first started work, that I was only able to save £25 a month but was so proud I was trying to save.

Original poster
mytartanscarf · 08/03/2015 12:26

It's confusing as some money comes in weekly and one payment is monthly so I generally think weekly as some weeks I don't get paid (confusing much? Grin)

Okay - no rent or mortgage.
Council tax - no.
Electricity - yes.
No insurance for home at present
No life insurance

OP posts:
avocadotoast · 08/03/2015 12:27

Well, what are you saving for? What goals do you have?

It's really impossible to say how much you should be putting away without knowing more about your situation.

Original poster
mytartanscarf · 08/03/2015 12:28

Erm, sorry avocado Confused

I would like to put aside as much as possible without resorting to ridiculous measures!

OP posts:
HoppityVoosh · 08/03/2015 12:32

You earn more than me and my husband put together and we have a mortgage and all associated bills to pay. We have a 4 year old too.

We save £600 a month so I'm sure you could manage at least that.

Ragwort · 08/03/2015 12:35

Where do you live that you have no rent/mortgage or council tax? Confused.

We can't answer the question because you haven't provided enough detail;

Make a list of what you spend each week on your 'essentials' and then deduct it from your income - work it out over a month if necessary.

It shouldn't be rocket science Hmm

Original poster
mytartanscarf · 08/03/2015 12:37

I could have misread your post, Hoppity, and I apologise unreservedly if I have, but it read rather as a rebuke.

I'm not going to apologise for what I earn as it's dictated by the jobs I do.

I'm not going to apologise for not having a mortgage or rent to pay. You, your husband and DS can come join me here if you like, but if don't think you would like Wink

And I'm not going to apologise for not having a husband or son.

OP posts:
avocadotoast · 08/03/2015 12:39

Sorry OP, I didn't mean to sound snippy. It's just a tricky thing to advise on!

If you're consistently earning £600pw then that works out to be £2,600 calendar monthly.

DH and I earn around that between us and we have a mortgage, all bills, etc etc. At the minute we put £200 each month into an account to cover "everyday savings" (like car repairs, home repairs, insurance etc). We budget our day to day costs and bills and whatever is left goes into savings too.

I'd really recommend putting a budget together. If you look on MoneySavingExpert there's a tool on there that helps you put a budget together that covers everything. From there you can decide whether you need to make cuts and see how much you have to put aside Smile

Original poster
mytartanscarf · 08/03/2015 12:39

A boat Ragwort Grin

I know, I need to gather together the information I have. It's very difficult as it varies so much! I work three jobs and I have a rental income as well. Some months I can earn up to £3000 a month. Other months it's considerably less - less than £1000.

Then where I don't have expenses in some areas I do in others - laundry, notably!

OP posts:
Ragwort · 08/03/2015 12:41

Why are you being so defensive - you are asking us a question that we cannot answer unless we have a lot of detailed information which for whatever reason you aren't prepared to share.

This seems a bit of a pointless discussion Confused.

Original poster
mytartanscarf · 08/03/2015 12:41

Thanks avocado :)

Unfortunately it isn't consistent - not that I am complaining! But because I have my fingers in a few pies I do earn quite a bit but it's very much ad hoc, which means organisation can be difficult!

Lately I have been realising how much slips through my fingers Blush and I absolutely want to save but it can be tricky - as evidenced by the above!

OP posts:
Original poster
mytartanscarf · 08/03/2015 12:42

Not at all, Ragwort - I answered your question with a :)

I was only snippy with ONE person, not yourself! And I did apologise in advance if I had read the tone wrong - but it isn't fair to sniff and state that 'well THATS more than us and ...' as the two situations just aren't comparable.

My life is bonkers Grin but I am sure I can be more organised with it! Grin

OP posts:
Ragwort · 08/03/2015 12:43

Thank you for more details Smile.

Why don't you try living on your lowest monthly income ie: £1000 for a couple of months and see how that works out for you? Have you any savings currently if you need them for an emergency?

Original poster
mytartanscarf · 08/03/2015 12:44

I think we are cross posting.

Let's have a (free) Brew

I think that's a great suggestion.

I've started:

Organising my weekly money by drawing out cash and keeping it separate in my purse (eg I need to pay X £30 on Monday, separate pocket of purse.)
Not buying drinks at work (some of my work is car based)

Guess just looking for other things people find works? :)

OP posts:
HoppityVoosh · 08/03/2015 12:45

Woah, Woah, Woah!

OP, I wasn't trying to be rude, I absolutely, honestly wasn't. I don't know anything about your situation or whether I'd like it or not.

You wanted to know how much we think you'd be able to save. I said at least £600 and gave you the reasons behind my answer. You didn't mention any dependents which is why I thought you live on your own - meaning the money you have has to go round less people.

I'm sorry I offended you, OP.

WhatsGoingOnEh · 08/03/2015 12:45

I just opened a First Direct account and they have a "sweeping savings" option that might work for you. At the end of the month, if you use this option, they "sweep" any leftover money in your account into your savings account. You set the baseline amount, and anything above that gets "swept".

OrinocoTheWomble · 08/03/2015 12:46

In that case write down everything you earn as you earn it (whether salary or rental income etc). Put it in the bank or below deck (wherever you keep your money!). Then write down everything you are spending your money on. We all fritter from time to time - especially in circumstances like yours - it's much easier to manage money if you get one lump sum each month.
Write it all down and work out what you're spending it on.
It sounds like you could easily be saving £1-2k a month.
(Is it fun living on a boat?)

Original poster
mytartanscarf · 08/03/2015 12:47

No, I wasn't offended at ALL Hoppity Daffodil it's just some people (not yourself I am sure!) get a bit funny about high income/low cost living.

I'm lucky to have it but it's unreliable, and perhaps moreover I only have low cost living because both my parents died when I was a teenager and honestly you wouldn't BELIEVE the number of people who say "Oh, you are so lucky!" I am always Hmm

So massive apologies from ME for being on the defensive there Flowers

OP posts:
BrandyAlexander · 08/03/2015 12:48

In your position, with £2,600 average monthly income, I would try and save at least £520 per month on average, assuming your essentials including insurance was taken care of. £260 would go into my pension and the other half would go into a cash isa. The pension pot could also be put into a stocks and shares isa provided I had no intention of touching it. I would also aim to have 6 months rainy day money put aside to cover the essentials if everything went wrong. If you have no rent/mortgage then I would pay an extra £500 per month into the savings pot.

Original poster
mytartanscarf · 08/03/2015 12:49

WhatsGoingOn that's great advice, thanks :)

Orinoco, thank you as well!

It has it's moments. I love it, there's a sense of community, ducks, it's warm and very cosy but sometimes when there's a lot of rain it's very restrictive. It's lonely at nights and things like toilet/shower are a nuisance.

OP posts:
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