Asked on 11 Jul 2019
Hi! Can everyone share how much you and your fellow mates are saving every month? Doing my market research to see if I'm saving enough.
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Let's just start off by saying your market research is not going to be statistically significant given the very limited data size (and that is based off the # of responses you are getting here) so I don't think it's a good gauge purely by relying on sentiments here on Seedly.
I would throw that question back to you and ask yourself why do you want to know. I get it that from the psychological perspective that it is comforting to know you are saving above the mean / median / average but everyone is at a different state of life so it's hard to compare apples to oranges.
If I tell you the absolute savings is 2k per month, would that make feel worst off if you are saving a measly $500? Probably. Or it could motivate to save more.
End of the day what matters most is making the best use of your resources to achieve the optimal financial outcome for yourself. Ignore the noise or trying to compare with others. You can never keep up with the Joneses, and at some point it will make you feel like it's a competition when it is not.
It is relative, of course, but if you talk about purely saving the money, I tend to set a budget for spending first. Capping my food, entertainment and travel expenditure at an amount (let's call this the purse) that has some leeway, and everything else will be saved. Towards the end of the month prior to the next salary coming in, anything remaining in the purse is also saved. If you want to put an absolute amount to it, I was basically spending less than $500 a month and saving everything else that I took home. Since I have tracked my expenses for the past 10 years, I was able to identify trends that allowed me to modify my expenditure even further to cut more costs.
I did this for the first 2-3 years of my career, and now I would say that anything I save isn't really considered by me to be savings any more, but it goes into my warchest for deployment at a more opportune moment. My emergency funds that could sustain me are at a comfortable level and I intend to keep them that way.
I don't save a fixed sum every month.
I just spend what I NEED. Then the rest is 'saved'.
The problem with this method is, people have different definition of NEED, so this method doesn't work for most people.
So to answer your question my family NEEDS amounts to $3000 monthly average. The rest is saved.
It really depends on how much you earn every month, your basic commitments etc. A basic rule would be 30/70 if you just started working. 30% for spending and 70% for savings. A budget or spending app will help as well.
The savings can be used towards your emergency funds which would need to cover at least 6 months of your spendings. The rest can be used towards investments, or further studies.
I have just started working and I save about 1500 per month. This is because I set up different saving accounts to control my spending when I get my paycheck.
I have a feeling that some of my peers spend a lot on their travels. I think it broadens perspectives to travel but i disagree with how they intend to splurge on their travels before they start working. There seems to be the "I should go all out on travelling" before work starts for good" mentality.
In my opinion, a simple trip suffices!
Does anyone have the same sentiments?