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

[bitteeinbit]

I was playing with Excel earlier today and decided to find out how much I'd been saving percentage-wise. I was really surprised to find out that for the past 3 years, I'd been saving a whopping 20-26% of my net income... I found it surprising since I always felt like I wasn't saving nearly enough (shit salary, so the savings amounts are quite small).

Anyways, I haven't lived in Canada for close to ten years, so costs are different. I now have a short-term contract in the middle-east and am saving something like 80-85% of my salary. It's unusual, but interesting nonetheless.

Supposedly, the average Canadian saves 3% of their after tax income. http://www.moneysense.ca/save/are-yo...rage-canadian/
I'd be curious what everyone else saves. If you're not sure, just give a ballpark figure.

The money can be going anywhere: savings account, TFSA, RSP, mutual funds, stocks or whatever.

HOWEVER, to make things more level, you can't count what your employer matches to your contributions.
Also, DO NOT count your mortgage payments. I know this is an endless debate as most will consider it an investment, but in my mind it's still debt that you're paying off. Also, because house values and mortgages are all different, better to leave the mortgages out of it.

Simply put, what percentage of your net income to you put away/save/invest?

[ianmcc]

Putting 24% into:-
-Wifes work RSP
-My LAPP pension
-Personal and spousal RRSP
-RESP
-TFSA
It's why we can't have nice things but will be able to retire in 7 years.

[ZenOps]

Where is zero? For that matter, where are the negative numbers for those who want to be Kanye West?

Lets look at this realistically:

https://en.wikipedia.org/wiki/Payday_loans_in_Canada

How many banks are closing, and how many payday loan lenders are opening up and thriving? How long are the lineups at the bank for depositors, and how long are the lineups at CashMoney for a 60% interest loan?

This *is* a car enthusiast forum, but I'd still think that asking if anyone has ever paid for a payday loan at 21% to 60% might be more insightful.

In Britain, they all falling over themselves for 1509% loans.

https://www.wonga.com/

[Twin_Cam_Turbo]

Anywhere from 15% to 45% depending on the month.

[FraserB]

Probably about 25%, looking at the financial plans my advisor put together for me made me realize how much saving a bit now is worth down the road.

[killramos]

"Do not count home equity contributions"
- Every renter ever



Honestly your restrictions don't make much sense. At the end of the day $ contributed into your net worth over net income are all that matters.

[bitteeinbit]

Originally posted by ZenOps
Where is zero? For that matter, where are the negative numbers for those who want to be Kanye West?

Let's be realistic here, this is Beyond... Ballers central. The 1% of Albertans, so basically the Canadian 0.01%. I'm a Quebecker and have actually never lived in Aberta.

Originally posted by ianmcc
Putting 24% into:-
-Wifes work RSP
-My LAPP pension
-Personal and spousal RRSP
-RESP
-TFSA
It's why we can't have nice things but will be able to retire in 7 years.

Good job! How old are you?

Originally posted by killramos
"Do not count home equity contributions"
- Every renter ever



Honestly your restrictions don't make much sense. At the end of the day $ contributed into your net worth over net income are all that matters.

I don't rent. I own my place and it's paid off. Even if it weren't paid off I wouldn't count it towards my assets until the bank has been paid off.

I get your point, but I'm trying to keep it simple. Yes, some people may put all their savings towards their mortgage, but for simplicity's sake I'm excluding the mortgage as otherwise the percentages would likely be really high. In this case I'm guessing renters will be over-represented in the higher brackets as they'll appear to be saving a higher percentage than those who bought a house. If anything, it just gives us an idea of what % which isn't put in a mortgage is invested.

[Buster]

Originally posted by bitteeinbit

Let's be realistic here, this is Beyond... Ballers central. The 1% of Albertans, so basically the Canadian 0.01%. I'm a Quebecker and have actually never lived in Aberta.


Good job! How old are you?



I don't rent. I own my place and it's paid off. Even if it weren't paid off I wouldn't count it towards my assets until the bank has been paid off.

I get your point, but I'm trying to keep it simple. Yes, some people may put all their savings towards their mortgage, but for simplicity's sake I'm excluding the mortgage as otherwise the percentages would likely be really high. In this case I'm guessing renters will be over-represented in the higher brackets as they'll appear to be saving a higher percentage than those who bought a house. If anything, it just gives us an idea of what % which isn't put in a mortgage is invested.

Ignoring de-leveraging isn't appropriate, either.

If someone is capturing a low, but risk free "yield" by paying down their mortgage, that performs a similar function to saving.

Probably a better question for the OP to ask is: how much does your net worth shift in a year relative to your income. That way your assets and liabilities are recognized.

[bjstare]

Not including mortgage payment (won't go into why I think it should count for the amount I'm paying down the principal), ~65%

[ianmcc]

Originally posted by bitteeinbit



Good job! How old are you?

Only 51 so for me it's freedom 58!

[ExtraSlow]

Voted 1% currently, since we're down to being a single income family and you didn't have a 0% choice.
Was previously quite a bit higher, but it's actually a tricky thing to calculate, when there is RRSP, RESP, TFSA, pension contributions, other savings, etc. Used to do regular extra mortgage payments as well. I know you said to leave those out of it, but it was equal to investing in my RRSP or elsewhere in my mind.

[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!

[FixedGear]

I'm saving around 60% of my net income, but I earn a good salary and more or less live like a student.

[max_boost]

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!

That is so true but I just couldn't do it.

If all I did was just dump it into the index and collected my dividend and kept averaging my cost over the last 10-15 years I would be laughing. I just don't have the patience and that's my downfall. I find myself click happy, easily triggered and investing overall messes with my brain. Every time I wanted to make a trade I felt like I was day trading my primary lol

However with that said, it's a bit odd feeling to not owe any money. Recently I dumped two vehicles, paid off my condo and I consider myself debt free! Not payment free because shit like taxes, condo fees, living expenses are never ending haha

[max_boost]

Right now it's easily 30% + for the poll. I'm pretty smooth sailing these days. The gf also got herself a job so every dollar she makes, it's saving me money!

[ExtraSlow]

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!

Well, that's sort of true, but keep in mind that paying down your mortgage is a truly zero risk investment. Plus, it's a kind of "invisible" savings, so you are much less likely to see that amount in some account and just end up spending it, which some folks for sure do in things like TFSA etc.

[btimbit]

2.5% into company shares (which gets matched) . Not close to what I'd like to be able to do but a lot higher than it's been the last few years

[Manhattan]

If we've learned one thing from beyond shouldn't it be that financial polls here are a terrible idea? Maybe combine the results from reddit and you'll have something that comes a little closer to representing the actual population. FYI Japan has the highest savings rate in the world at around 25% IIRC.

The people who don't respond to this poll are probably the same people who are negative or low single digits. Not because they don't wanna respond but because they don't know or care to figure it out.

[16hypen3sp]

For myself:

Right now it's easily 30+ so that's what I voted.

I've been in a pretty good spot for the last 6 months. Before that, it was probably in the 20% range.

[vengie]

~10%.
It was more before the downturn, but pay cuts hampered that significantly.