What percentage of your net income do you put aside every month?

[tehwegz]

At least 30% per month, and aiming to go as much as 50% per month by reducing bills.

No debt, car paid off.
If I cut out fast food down to once a week, I'd save an easy $50 per month.
Switching car insurance for a $30 per month saving.
And I can save another $30 per month switching to Freedom Mobile as they have a good $35/month plan for my iPhone.

I value aggressive saving, frugality, minimalism, contentment, etc. and it doesn't even feel like I'm giving up anything. Not giving in to a pizza night because a) my wallet, and b) I want an aesthetic physique, which is also good for the wallet, and car mods are better than most of the food at restaurants anyway.

[KappaSigma]

Originally posted by KPHMPH
I feel paying extra on your mortgage is such a bad idea. If you are between 2-3% interest it's better to throw extra money in investments.

Just my opinion though!

100% disagree. Not efficient. Pay down mortgage and then take offsetting low rate heloc to invest.

[G]

Would make sense to state % of what total income. Some guy making $1500 obviously isn't going to save the same percentage as someone making $15000.

[zhao]

If OP wants just savings from salary, 40-50% for myself for the last few years.

all my 20s was "0%" saved, but I was either using old sports cars as 'savings', or dumping every penny into my business.

Originally posted by KappaSigma


100% disagree. Not efficient. Pay down mortgage and then take offsetting low rate heloc to invest.

Disagreed. What is recommended for one person may not be recommended for another.

What if he put 5% down on his house? You'd be putting his money to sleep with that advice.

[Team_Mclaren]

Its so relative imo. If you make 2k a month, 10% means $200....

[Feruk]

Why would I not count my employer matching? These rules are confusing.

Originally posted by ExtraSlow
Well, that's sort of true, but keep in mind that paying down your mortgage is a truly zero risk investment.

That's not really accurate because we have no recourse mortgages in Alberta and you can't assume real estate will always go up. If real estate were to tank here, you could walk away from the house and likely only lose the money you'd paid into the mortgage. However, any extra payments towards the mortgage would be sunk.

[KPHMPH]

Originally posted by Feruk
Why would I not count my employer matching? These rules are confusing.


That's not really accurate because we have no recourse mortgages in Alberta and you can't assume real estate will always go up. If real estate were to tank here, you could walk away from the house and likely only lose the money you'd paid into the mortgage. However, any extra payments towards the mortgage would be sunk.

This is what I was getting at with my post. Yes real estate could be an amazing investment or we could have another Fort McMurray incident. People buying $900,000 average houses that are worth $580,000 right now.

[jwslam]

What is the definition of "save"?
Because I end up spending all my monthly "savings" on toys and vacations and end back up at ground zero LOL

I'm pretty much relying on just my work matching for retirement some day.

[Feruk]

Originally posted by KPHMPH
This is what I was getting at with my post. Yes real estate could be an amazing investment or we could have another Fort McMurray incident. People buying $900,000 average houses that are worth $580,000 right now.

Agreed. Every time a buddy tells me he bought a new condo downtown for $500K, I wanna throw up.

Originally posted by jwslam
What is the definition of "save"?
Because I end up spending all my monthly "savings" on toys and vacations and end back up at ground zero LOL

I believe the definition would be... where you don't do that.

[max_boost]

Originally posted by KPHMPH


This is what I was getting at with my post. Yes real estate could be an amazing investment or we could have another Fort McMurray incident. People buying $900,000 average houses that are worth $580,000 right now.

lol I feared this when I bought a condo haha but my 580k condo is probably only 525 right now

[max_boost]

Originally posted by jwslam
What is the definition of "save"?
Because I end up spending all my monthly "savings" on toys and vacations and end back up at ground zero LOL

I'm pretty much relying on just my work matching for retirement some day.

oh just sounds like you need to make more money

[jwslam]

Originally posted by max_boost
oh just sounds like you need to make more money

Any chance you're hiring for part time?

[dirtsniffer]

do you include gains on the amount?

say I average 20% savings and it made 12% last year did I save 25%?

[sputnik]

- 10% into TFSA
- 7.5% into my Defined Benefit Pension (with another 7.5% matched)
- 8% into RESP
- 5% into RRSP

My TFSA isn't considered a long term savings but rather an emergency fund and a fund for larger household projects/purchases.

[Mitsu3000gt]

Must be nice to make enough money to be able to cut net income by 30% and maintain what I assume is a very pleasant quality of life.

I guess in the $100 oil days with 9% / 9% RRSP matching plans, it was pretty easy to save 20-30% each month. Not so much anymore though

I think I'm around 20% for last year, but I did lose my RRSP matching (which was a free 9%).

[timdog]

Originally posted by Team_Mclaren
Its so relative imo. If you make 2k a month, 10% means $200....

a doctor making $400k that saves 10% is going to have 'financial freedom' after the same amount of years as a retail worker making $30k a year saving 10%. they will just live very different lifestyles. percentage of your income (or more appropriately a percentage of your cost of living) is really what matters.

[timdog]

i am doing about 20% but wish i was doing more, with 2 young kids its pretty tough to do more than that now but that will definitely change in the next couple of years.
10% rrsp
6% of my income goes into extra mortgage payments
4% into other investments

[HiTempguy1]

Maybe its just me, but some people posting in here either:

1) Are balling out of control (not surprising, it is beyond)

2) Basically do nothing that costs any money... which isn't a bad thing if that's your kind of deal, but I just couldn't live that lifestyle

3) Are WAY oversaving for retirement.

Like Sputnik:

- 10% into TFSA
- 7.5% into my Defined Benefit Pension (with another 7.5% matched)
- 8% into RESP
- 5% into RRSP

Why?? You are saving/investing 30% of your after tax income for retirement (well a bit less because the DB and matching is before tax but I digress)? I just don't really understand, especially with a DB, you'll probably get 60-65% of your highest 5 year average income when you retire. Why would you possibly need more money then, when you probably have way more expenses now then you will then?

I'm genuinely curious, do half of Beyonders plan to retire at 40 or 50?

I earn 6 figures, I to have a DB pension and all my calculations for retirement planning indicate it will be more than sufficient. I also have a small amount going into a TFSA right now, but we're talking like 1%,

And I don't have a girlfriend or wife, I'd need even less for retirement assuming we were still together and she worked her entire life.

So yea... I don't get it, I must be missing something when people are saving 50% of their income per month. Or maybe they started saving late in their 30's and are making up for lost time?

[J-hop]

Not having a car payment is a huge factor too. My most expensive car was 13k (gfs car) my daily cost $2500. Some people spend 15-20% of their net income on car payments. Absolutely ridiculous IMO.

[ickyflex]

Originally posted by HiTempguy1
Maybe its just me, but some people posting in here either:

1) Are balling out of control (not surprising, it is beyond)

2) Basically do nothing that costs any money... which isn't a bad thing if that's your kind of deal, but I just couldn't live that lifestyle

3) Are WAY oversaving for retirement.

Like Sputnik:

- 10% into TFSA
- 7.5% into my Defined Benefit Pension (with another 7.5% matched)
- 8% into RESP
- 5% into RRSP

Why?? You are saving/investing 30% of your after tax income for retirement (well a bit less because the DB and matching is before tax but I digress)? I just don't really understand, especially with a DB, you'll probably get 60-65% of your highest 5 year average income when you retire. Why would you possibly need more money then, when you probably have way more expenses now then you will then?

I'm genuinely curious, do half of Beyonders plan to retire at 40 or 50?

I earn 6 figures, I to have a DB pension and all my calculations for retirement planning indicate it will be more than sufficient. I also have a small amount going into a TFSA right now, but we're talking like 1%,

And I don't have a girlfriend or wife, I'd need even less for retirement assuming we were still together and she worked her entire life.

So yea... I don't get it, I must be missing something when people are saving 50% of their income per month. Or maybe they started saving late in their 30's and are making up for lost time?

It's never about having enough, it's always about having more than enough to never have to worry about what ifs.

People don't save to retire and have a defined limit as to what they can spend to maintain x lifestyle. Everyone tries to grow their net worth to support their lifestyle they wish to have and more just cause. You pass it down or donate it whatever floats your boat.