Is saving 30% of my income too much? - Seedly
 

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Savings

Asked by Anonymous

Asked on 05 Nov 2018

Is saving 30% of my income too much?

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Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 8. Wizard
Updated on 07 Jun 2019

Not at all. Unless you feel you are forcing yourself to eat plain bread and maggi mee to save that 30%

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Question Poster

on 06 Nov 2018

Thanks for your reply, Gabriel! Things aren't that bad for me... now! :P
Tina Sharon Lee
Tina Sharon Lee
Level 3. Wonderkid
Updated on 07 Jun 2019

Good for you! Try an even higher amount of possible. It's all about discipline and deciding between needs and wants. I find it works better to determine how much you need to spend and set an amount each month then save the rest. All the best!

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Question Poster

on 06 Nov 2018

Thanks for your reply, Tina! I don't earn a fixed amount every month so thought that doing it by percentage would be easier and more convenient for me :) 30% is the basic guideline for me, and if I have extra after all my usual outgoings (eg; HP, insurance, money to parents etc) [and I usually do], I transfer more into my savings account :)
Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Updated on 07 Jun 2019

Nope, as long as your quality of life is not affected. I.e. you are getting enough nutrients, you have good hygiene, etc etc

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Question Poster

on 06 Nov 2018

Thanks for your reply, Kah Hwee! I think I am doing ok on those fronts :)
Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 07 Nov 2018

There is no hard and fast rule about how much your savings rate should be. What is important is to save as much as possible when you are young and put it in a compounding instrument such as the CPF Special Account and when you grow older, you will realise that you do not need to save as much to achieve a comfortable retirement.

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Raimi Jasman
Raimi Jasman
Level 3. Wonderkid
Updated on 07 Jun 2019

Honestly, I saved about 60% of my salary. And I can do it, so can u. I still eat normally and sometimes I manage to get McDonald’s breakfast too. It’s just how disciplined you are?

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Question Poster

on 06 Nov 2018

Thanks for your reply, Raimi! 60% is a lot - wow, good for you! :) For me, I save a basic 30% every month excluding any extra topups, 10-15% is set aside for donations and my expenses account for roughly 14-18% of my income. Whatever is left over is for discretionary spending. I have to travel very often for work and am overseas for quite a few days each time, so I change foreign currency out of this leftover amount. Tbh that's probably the biggest moneysucker as I usually have to change to more expensive currencies such as USD and Euro..
Axel Chong
Axel Chong
Level 2. Rookie
Updated on 07 Jun 2019

It does not matter how much your peers saved. There is no such thing as too much savings so long u live your life well, & enjoy it. Ultimately, your life start starts now & not 40 years down the road (touch wood, who knows whether we will even get there...??)

Saved up within your means, & that the rationale of adopting a % of income earned instead of using quantum amount. However, mere savings & not growing it decently through proper investment (within your risk appetite) is an issue. That perhaps, might result in ‘too much savings’, since even the most attractive savings instruments out there such as DBS multiplier is also consider ‘low’ when compared against inflation.

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Question Poster

Updated on 06 Nov 2018

Thanks for your reply, Axel! I was rscrolling through some financial blogs and came across this concept of oversaving so I was curious to know what local experts thought :) I guess because overspending is so much more common, oversaving isn't really a thing. That is true - I am starting to look into investments now!
Loh Tat Tian
Loh Tat Tian

on 07 Nov 2018

Oversaving only occurs when your other aspect of life suffers. Social, mental, health etc. Meaning to say you should have at least some form of entertainment etc.