How much do you save?

Last couple of financial year we didn't save a thing. Any money earned was used to fund my business start up. On track to turn a decent profit this year, however that storm in April has made things a bit difficult. Still haven't recovered properly.

 

Zero. Spend 100% on living and supporting negative geared assets. Working on rezoning that will making them positive geared in the near future but until then we just tick along spending what we earn.

 

I've enjoyed reading the varied replies to this thread. Leo, I suspect many investors with sizeable portfolios think this way. Let the investments do the heavy lifting, and savings from salary become inmaterial.

To expand a little further on my own situation, my wife and I are investing our savings from our earnings into shares and etf's. However, the reality is that the portfolio is increasing in value on an annual basis by a far greater sum than our savings ever could. We also top up our Super through salary sacrifice. (I didn't include this in the savings % in my original post) and we have 1 child.

 

Thanks, spot on.

Someone asked this question some time ago, I really had no clue how to answer thiis because it's been so many years now where this does not apply.

I am sure Jason you are there too

MTR

 

Atm doing reno so saving nothing at all. Expecting a good tax return back so is that savings?

 

Haven't saved any money for long time.

We just keep re investing $$$$$, we bring home in to growing assets. Also, invested money in to upgrading our skill sets.

We keep x amount of $ for rainy days, rest invested in different asset class.

 

Currently have 5k month 'expense' that is payments to managed funds. This is our monthly automatic forced savings. Anything extra goes into Share and ETF top ups. I do though have the spectre of inner west childcare costs approaching

 

Can we make it 'how much do you spend'? haha.

I haven't saved a cent in the last 6 months, every penny has gone into the renovation.

 

I would have thought savings and investing, asset accumulation, etc, would be classified the same thing.
i.e. anything not spent on personal living costs and interest on any other debt, whether PPOR or IP's.

Generally, you still have to save before investing, even if it's only 1 week or 1 month.

 

If you don't mind me asking, whats current holding and how is it performing for you!

 

I'm with ya.

The year I tracked my spending (pie chat earlier), my saving component ended (14.8%) up going towards further investment the following year.

Combined (then) savings + investment for the year was 71.2%.

 

Zero, unless you count accumulating offsets and paying down non-deductible debt. Being in debt negates saving. That money is always working, if only to reduce my negative.

 

Yeah, thats cool. We have Forager Australia and International, Magellan Global and Infrastructure and a Perpetual Wealthfund with Geared, Long Short, Platinum Asia, Lazard Infrastructure and Vanguard Fixed Interest.

I track it all using sharesight.com.au. So 1 year performance to yesterday was 11.78%. Not amazing but very comfortable with that as that includes the recent global share weakness i.e china, Greece, Apple drop etc.

Best performer was Magellan Global at 19.52%. Worst has been Vanguard Fixed INterest at -0.5%.

 

About 62.5% savings rate (2x after-tax salaries) which is used for either paying down PPOR debt, funding negative cashflow properties or purchasing shares/ETFs.

 

You do need to create cash flow I borrow instead of save to do that. I spend my money before it comes in often just before the end of the financial year, via an LOC on Equity.

 

@Jingo Sounds good mate. Your doing what a lot of us are doing with property, your doing with shares. There actually is a share trading guru among us here (at least 1 I know of) who is freakin amazing at it! I'm guessing your more Buy and hold though. Do you leverage with margin loans at all?

 

Currently somewhere between 80% and 90% as I am now working full time (+overtime) and I do not pay rent!

 

Around 50% when I'm working. Will be DINK with GF moving in soon so just have to make her save like I do...

 

Including extra super contributions we save about 60% of our total income.