What proportion of your salary should you save every month?
help
Seriously: none of it.
Eventually you're going to get sick, and every damn penny you've saved is going to be taken from you by the health care industry.
Live for today. It's the only strategy that makes any sense.
>>17319463
>taken from you by the health care industry
muh NHS
only save if you have a goal you're saving for. don't just save for the sake of saving.
also saved
>>17319463
American detected
>>17319471
Seconding this
Another note: I see a lot of people who are saving money while at the same time paying down a loan. Outside of a rainy day fund, saving while having debt makes no sense at all.
Save what you want, there is no GREAT calculation. I save enough to pay bills (ALL of them) for 6 months.
The rest I spent on cocaine and hookers. Mostly hookers because I can't access cocaine easily. When I say hookers I really mean online girls. Well, when I say online girls they're mostly traps.
Yeah.. save 6 months.
>>17319383
Saving anything is better than saving nothing. Just try to make sure you have something to fall back on for a bit if you were to somehow lose your job.
>>17319463
>Live for today. It's the only strategy that makes any sense.
That makes no sense. Why would you want to risk being homeless for the sake of meh freedoms?
>>17319471
>don't just save for the sake of saving
See above.
>>17319483
This. Make paying your debts priority. I'd still have an emergency fund and then move into straight savings after your debts are paid off.
>save
Invest it you moron
I save 50%+ because I can't ever think of things to buy. I'm 23 and make ~50K, I pay all my bills and have a decent car. What am I supposed to be buying? Crap to clutter up my apartment?
>>17319585
This. Any personal financial advisor will tell you to put at least 3 month's worth of basic needs money in an emergency fund, and then leave it alone. Then start hammering down debt. It's not as sexy as investing, but it's a guaranteed return to pay down debt, and makes your cash flow more stable.
Multiple debts? Start with the smallest and those with the highest interest rate. Always pay of credit cards every month. If you can't, get a consolidation loan and then cut up your cards.
Some debt is better than others. F'rinstance, a mortgage isn't the worst because you have to pay to live somewhere. Students loans aren't the worst either, because interest is usually low or subsidized. Car loan/lease is the worst; never borrow money to buy a depreciating asset if you can at all avoid it.
>>17319611
Question: I'm young and bought a new car with a $20K down payment. I have plenty of money and could have paid for it outright, but because I am young I wanted to have a payment to build my credit (I was able to pay off my student loans in one lump sum after graduation so I don't know if that builds credit or not). The monthly cost is ~$300, less than my student loans before I paid them. Is this a good idea, or should I just pay it off?
To put it in context I had to finance the car under my wife's name because she has a better credit rating. Her credit got us 1.9% APR while my credit would have gotten us 3.9%.
>>17319383
Including my pension, I save a spit more than 20% of my monthly income. That's a relativley recent thing for me though, only for the last 5 or 6 years, since I've actually been earning more than it costs to keep my family alive for a month.
>>17319471
>only save if you have a goal you're saving for. don't just save for the sake of saving.
That seems like terrible advice to me, unless you don't ever plan on retiring (or living to retirement age) or buying anything that costs more than your disposable income in one month.
>inb4 credit cards
I don't like the idea of paying interest on something. Not only does it mean the £1,000 tv in the shop will actually cost me £1,060, it also means I have to work hard to earn the extra £60 and some fucker else gets to spend it on themselves.
>>17319383
Just have an index fund thst you don't touch for 20 years
>>17319601
I'm sure that's what he meant. I try to keep 10k in the bank at all times then after that half my paycheck goes into my index fund or IRA. It's important to prepare for the future, and I figure even if something unfortunate happens and I don't live to retirement I can transfer my assets to my brother.
>>17319383
what is that thing?
>>17319602
Do you own your own property? If not you should save to buy something, for yourself. Better yet you could buy something you can live in and rent out at the same time. Rental property is just about the best investment possible.
-As others said: put some money aside for an emergency fund (in case something goes wrong). Put it into an index fund or something pretty stable.
-Use your companies matching policies and invest in their stock if possible. (I do about 10% of my monthly take home into my company offered funds and stocks + 5% matching from my company)
-Pay down any high interest debt
-Rest of my money is for whatever: investing, real estate, trips, etc.
-Get some credit cards with decent rewards (the one I have is something like 4% back on groceries and gas)
>>17319918
I do not. I think I'm too young to buy property. I have ~$35K in savings, it will probably reach $40K in a couple months.
Right now I'm preparing to move to a new city so my fiancee can go to grad school. We'll be there a couple years, then move to another city for five to seven years. Then we'll pick where to settle down. To me it seems foolish to buy property now if we're just going to move away in a few years.
>>17319635
I'd say just pay it off now if you can, use your credit card each month but always pay your bill on time.
Since your wife has good credit you guys should be good for a mortgage.
>>17319930
I don't have a credit card either. I have some medical bills from a few months ago, will paying those improve my credit?
I grew up very poor so having a salary is insane to me.
>>17319699
>Not only does it mean the £1,000 tv in the shop will actually cost me £1,060,
If you didn't want that you should have voted remain.
>>17319936
>you should have voted for extinction to save £60
>liberals
>>17319944
Ah yes, all those polish plumbers genociding the shite race.
>>17319635
I think that buying a new car at any time is a mistake. Of course, it loses a chunk of its value as soon as you drive it off the lot. Borrowing or financing a new car is even worse.
Yes, you're building a good credit rating but you do the same by paying your bills on time.
Pay off the car as soon as you can. Then you're not paying interest. Your cash flow is more stable.
Of course, if you can write off the payments or the interest then maybe you keep the debt. It depends on your situation.
It's nice to have an emergency fund set aside, other than that I'd recommend saving at least 15-20% a month or maybe more depending on if you're saving for something specific.
I'd say as much as you can while living comfortably. Comfortably != expensive cars and stuff media and capitalism convinces you you want.
http://www.mrmoneymustache.com/
