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How much do you save?

Discussion in 'General Property Chat' started by Jingo, 23rd Jul, 2015.

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  1. Jingo

    Jingo Well-Known Member

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    Throughout our investing journey, we have managed to save a portion of our income each year. I'd be interested to hear from others how much of your income you save. (In percentage terms).

    For those investors with a number of investments, do you still save and why?

    My wife and I manage to save approximately 55% of our take home pay each year. We are currently investing the money into shares and ETF's to generate further income streams.
     
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  2. HUGH72

    HUGH72 Well-Known Member

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    Can you provide context? Children? I think this makes all the difference
     
  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Did a rough calculation and back then we probably saved around 75% of our salary. But no kids.

    No we don't save much anymore - little point for us to. Our yearly equity created far exceeds any salary we need to save for further deposits. Once the equity machine (your portfolio) produces 2-300k a year and more, trying to save an extra 15k from salary to invest really becomes redundant imo. We do save some of our investment profits though, most goes back into other investments in Australia and abroad.
     
    Last edited: 24th Jul, 2015
  4. Fielding

    Fielding Well-Known Member

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    Save about 50% in total. 30% reinvestment and 20% holiday and enjoying myself fund. No kids.
     
  5. MJS1034

    MJS1034 Well-Known Member

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    Save about 75% of total net pay each week. All savings going into offset for further purchases and building share portfolio.
     
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  6. Pins

    Pins Well-Known Member

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    Wow and I thought we were saving a lot! We save 40% of our take home pay.
     
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  7. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Not counting property income which is slightly positive.
    With 1 child we save about 90% of our salaries and net business income.
     
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  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    That's fantastic Pins!! When I used to work in the private sector, most of my colleagues had a negative saving rate..lol Their pay check was spent on credit days before they even got paid. Unbelievable.
     
  9. Biz

    Biz Well-Known Member

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    We earn decent incomes but find it really hard to save anything significant. We probably save about 20-30k a year. The bulk of what we are worth has come via investment returns.
     
  10. Pistonbroke

    Pistonbroke Well-Known Member

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    More to the point, how much don't you spend? 15-20% goes directly to tax effective salary sacrifice so I don't spend it on tax ;)
     
  11. Chilliblue

    Chilliblue Well-Known Member

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    Impressive
     
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  12. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Thanks, high income helps.
    Our spending has not increased at the same rate our incomes have increased when we started from a low base 10 years ago.
     
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  13. KDP

    KDP Well-Known Member

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    DINK, atm 60% is going into investments or cash savings.
     
  14. S.T

    S.T Well-Known Member

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    I'm not selling anything
    I find I don't actually save much, rather invest it into lower risk investments.
     
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  15. OC1

    OC1 Well-Known Member

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    Re plough investment/development profits back into more deals. Savings don't apply really. Having said that, if you spend aggressively while turning over property deals you will most likely end up spending everything and not getting ahead.
     
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  16. Pistonbroke

    Pistonbroke Well-Known Member

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  17. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I tracked every dollar in 2013, while saving deposits:

    [​IMG]

    In 2015, a notably higher proportion (and amount) is going in to business and investment.
     
  18. aussieshorter

    aussieshorter Well-Known Member

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    We've always aimed at spending less than 50% on living expenses (including holidays), and the remaining 'savings' is put into investments.

    With our first baby about to start daycare that will be tested though!
     
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  19. Pistonbroke

    Pistonbroke Well-Known Member

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    .
    I'd class that as discretionary spending.
     
  20. aussieshorter

    aussieshorter Well-Known Member

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    True, but my 50% target includes all living expenses, which by my definition includes discretionary spending.