How much do you reckon I should be saving per month?

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migh_and_highty
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Okay - got a graduate job of 24k pay. Decent starter pay, was hoping for more but I reckon i'll work my way up.

So that's 2k a month, and that equates to roughly 1.6k 'take home'. My living expenses are roughly 700 a month, so lets say 900 per month is mine.

What do you guys reckon I should keep aside and 'save'/put into ISA and how much should I splash?
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HighFructose
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Irrelevant but what university and course did you do?
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Simoonio
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Work out what you want and how much you're willing to put away to save for that
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migh_and_highty
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(Original post by HighFructose)
Irrelevant but what university and course did you do?
Not a top uni; Computer Science at De Montfort Leicester, as I got **** a-levels, but my degree was high (>85%) as i discovered after sixth form i have a knack for programming
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HighFructose
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(Original post by migh_and_highty)
Not a top uni; Computer Science at De Montfort Leicester, as I got **** a-levels, but my degree was high (>85%) as i discovered after sixth form i have a knack for programming
Wow well done.

Real estate is the way to go
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Pete H
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It depends on a lot of things and how much you prioritise the 'here and now' vs later.. I had very similar in & outs the first year I lived in London and didn't save anything, but my flatmate (also earned the same) saved like £500 a month.

So ask yourself:

1) What are you saving for (Could be more than one)? A house? A rainy day? A wedding? A holiday? Retirement?
2) Which of those is your biggest priority? Where does that fit with every day priorities like eating out, clothes etc.

As part of a wider monthly budget you can write down all the things you want to spend money on (including areas of saving) and rank them - then give the ones at the top a higher % of your £900 left over.
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Luke7456
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about 3 fiddy
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ByEeek
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Personally, I would save as much as possible. Have you started a pension yet? Go for it. Every £1 you save into your pension is worth £500 if you were to try and save the same amount at the age of 50.

Good luck!
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Quady
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Agree with the above, about 3 fiddy
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username738914
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Minimum 10-15% every year whilst you're young, then ramp it up to 20-25% when you make a bit more money. If you want to retire early (or just reach financial independence quickly), you're gonna have to make a lot more money and save/invest a lot (>35% of your take-home) into index trackers.

Posted from TSR Mobile
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RogerOxon
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(Original post by migh_and_highty)
Okay - got a graduate job of 24k pay. Decent starter pay, was hoping for more but I reckon i'll work my way up.

So that's 2k a month, and that equates to roughly 1.6k 'take home'. My living expenses are roughly 700 a month, so lets say 900 per month is mine.

What do you guys reckon I should keep aside and 'save'/put into ISA and how much should I splash?
If your employer pays a reasonable amount into your pension, I'd put a fair amount there. However, it is money that you won't see for a long, long time, so be as sure as you can that you won't need it. ISAs can be a good option too.

Building up instant-access savings of several months (3-6) of net salary will help protect you from the unexpected. Please remember to use some money to have holidays and fun though.
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RogerOxon
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(Original post by Suldok)
Otherwise you want to take your current age, divide it by two and contribute that percentage to your pension every month.
Contributions made early in your career massively affect the fund's final value, so it's beneficial to pay in as much as you can (reasonably), as early as possible.

(Original post by Suldok)
unfortunately my employer only adds 2% from their side and they didn't want to match
Not all pension offerings are good - many have high fees and not the best performance. Employer contributions can help offset some of that though. In some situations, an ISA might be a better bet.

Another consideration is how often you might move companies.
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Quady
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(Original post by RogerOxon)
If your employer pays a reasonable amount into your pension, I'd put a fair amount there. However, it is money that you won't see for a long, long time, so be as sure as you can that you won't need it. ISAs can be a good option too.

Building up instant-access savings of several months (3-6) of net salary will help protect you from the unexpected. Please remember to use some money to have holidays and fun though.
Surely the OP has asked what a 'fair amount' is.

Your advise is very vague.
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RogerOxon
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(Original post by Quady)
Surely the OP has asked what a 'fair amount' is.

Your advise is very vague.
I don't disagree, but there really isn't much to go on. For example, we don't know how much they spend on socialising, how secure their job is, how long they want to stay in it, any planned major purchases (e.g. car), if they want to stay in the area long-term / when they want to buy housing, what age they might have children. There are a lot of variables.

A 'fair amount' depends on the person, their current priorities, and future plans. Either the OP needs to give a lot more detail, or any advice needs to be general.
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Emma:-)
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(Original post by ByEeek)
Personally, I would save as much as possible. Have you started a pension yet? Go for it. Every £1 you save into your pension is worth £500 if you were to try and save the same amount at the age of 50.

Good luck!
I agree.
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Quady
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(Original post by RogerOxon)
I don't disagree, but there really isn't much to go on. For example, we don't know how much they spend on socialising, how secure their job is, how long they want to stay in it, any planned major purchases (e.g. car), if they want to stay in the area long-term / when they want to buy housing, what age they might have children. There are a lot of variables.

A 'fair amount' depends on the person, their current priorities, and future plans. Either the OP needs to give a lot more detail, or any advice needs to be general.
Three fiddy
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stettafire
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(Original post by migh_and_highty)
Okay - got a graduate job of 24k pay. Decent starter pay, was hoping for more but I reckon i'll work my way up.

So that's 2k a month, and that equates to roughly 1.6k 'take home'. My living expenses are roughly 700 a month, so lets say 900 per month is mine.

What do you guys reckon I should keep aside and 'save'/put into ISA and how much should I splash?
Depends on what you earn and what you spend. You need to put some away, I think. What I do (baring in mind I have an instant-access savings account) is when I get paid, I put whatever is leftover from the previous month into my savings and for the current month, I live off the wages for just that month. Only exception being for emergencies or rare large expenses (I'm talking deposits, cars, wedding rings whatever)
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Quady
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(Original post by stettafire)
Depends on what you earn and what you spend. You need to put some away, I think. What I do (baring in mind I have an instant-access savings account) is when I get paid, I put whatever is leftover from the previous month into my savings and for the current month, I live off the wages for just that month. Only exception being for emergencies or rare large expenses (I'm talking deposits, cars, wedding rings whatever)
Surely they earn £24k?

Your idea suggests if they spend everything they earn they should save nothing.
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winterscoming
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(Original post by Quady)
Surely they earn £24k?

Your idea suggests if they spend everything they earn they should save nothing.
Paying into a pension is not always a good idea - it depends upon circumstances. A big factor is whether they're paying for rented accommodation in an expensive part of the country.

For example, people renting in London or the South East might be paying up to half of their take-home salary (after Tax/NI/etc.) directly to their Landlord, therefore the best thing they can do for their finances is put themselves in a position where they're paying for their own mortgage (paying off a house they get to keep and own forever) - so the best place to put the money would be a Lifetime ISA, where the Govt. will top-up whatever you put in by 25% - that helps a lot towards the cost of paying for a deposit, and it's a much better return than any other short-term (less than 5 years) investment.
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TOP_20
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Well it's good to save as much as you can - while having at least a little bit of fun in life - or what's the point of being alive.

The way I've always done it is saving $1000 and then considering my account at 0 when it's at 1000... so that's always my cushion - but if you can have a bigger cushion of 1500-2000 and consider your account at 0 from that point - that's even better
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