Do you save money every month?

[platinum87]

I save money and i invest that money, currently, within an S&S ISA.

OP has a defeatist attitude and so do many others.

What's the plan if markets don't recover and your ISA drops in value by the time your mortgage fix ends, and the mortgage rates rise substantially (in theory)? Would you then empty your S&S ISA in to your mortgage if the rate went above 7%?

Investments into indexes are infinite term investments.

What this means is, you invest the money, and you will not need that money, not in 1 year, not even in 10 years.

You may want that money, but at no point do you need it.

Instead of investing you could go on holiday with your entire family to Disneyland, pay £10k or so, have a nice time. That money is now gone.

This is why the majority of the investors do very badly, this is also why people who die with stock investments outperform people who are alive.


Edit: The majority of people, who have spare cash will just spend it, so either overpaying a mortgage, or investing it into an index, is still better than most, regardless of what happens in the markets/interest rates

 

[SpeedFreak]

I invest about 40% of my gross income between pensions and stocks. Do you count capital repayments on mortgages as well?

 

[azazl187]

2 kids,not a chance!

 

[Mercurial]

inb4 OcUK rich bois come out and flex / humble brag.

and so they did...

 

[BigBoy]

We earn £5k+ take home per month between the wife and I, dump and extra £300pm on the Mortgage, save £800pm, have separate personal spends move to our own accounts, move another £300ish to other accounts to cover car running costs and so on. We also have a dedicated holiday fund that just exists because we want it to and keeping large sums of money in a current account would generate less interest than if it was in a "savings" account. We live well within our means, we like to eat out and we like nice things but also am very frugal when it comes to spending and have to justify spending to myself!

I have 4 children, own my own home with only 10 years left on the mortgage, and am contemplating dumping £60-70k (savings) on an extension.

 

[AndyCr15]

Rental and mortgages are no different to any other cost. Owning a house then means you are liable on maintain and upkeep costs , as well as depreciation risks.

I honestly don't think I've ever heard anyone try and argue that renting is better for long term financial planning than owning?! Ever! I get that it has benefits and sometimes it's simply the only option, but I can't understand how renting can be a better option if you can afford to get onto the property ladder?! Obviously renting and mortgages are different to other costs. Well, mortgages are anyway... as you're buying something with credit. Some bills you have nothing left afterwards (like renting), but with a mortgage, you have a property!

 

[alexakasloth]

I regularly put money into a S&S ISA, aim is for 6 months outgoings as an 'emergency fund'.
Slowed down a bit in recent months as I use spare money to buy and sell antiques and collectable items which has been making a good return.

 

[Uther]

I honestly don't think I've ever heard anyone try and argue that renting is better for long term financial planning than owning?! Ever! I get that it has benefits and sometimes it's simply the only option, but I can't understand how renting can be a better option if you can afford to get onto the property ladder?! Obviously renting and mortgages are different to other costs. Well, mortgages are anyway... as you're buying something with credit. Some bills you have nothing left afterwards (like renting), but with a mortgage, you have a property!

Isn't it a bit of a UK centric thing though? In a lot of countries (and I don't think D.P. lives in the UK) rent is just another bill.

 

[ODuffer]

Yes, 25% of my take home.

 

[Freakbro]

There doesn't seem to be a cost of living crisis worry in this thread!

 

[Beerbaron]

I try to save what i can each month. My mortgage is up for renewal early next year so going to dump a large chunk on the outstanding balance as i know interest rates wont be great.

 

[Uther]

There doesn't seem to be a cost of living crisis worry in this thread!

To be fair this is a computer enthusiasts forum,even though it's GD, so I would expect it to attract the wealthier end of the spectrum. Even though I'm **** poor I still try and save a bit every month.

 

[robj20]

and so they did...

Tell you what, you define what rich is and everyone above that line won't reply to the question asked. Or should they just lie to make some people feel better?

 

[MikeTheNative]

While there's some people's that are completely unrelatable to me, I do find these sort of threads useful/motivational that I can help save and/or put more away for retirement.

 

[D.P.]

Isn't it a bit of a UK centric thing though? In a lot of countries (and I don't think D.P. lives in the UK) rent is just another bill.

This for the most part.
Living has costs: taxes, bills, food, entertainment, transport, insurance, health insurance, etc. Rent or mortgage is simply another cost.

While usually ownership is cheaper than renting, this id not always the case. It highly depends on rental rates, maintainence costs, investment opportunities, market conditions.

If you live somewhere with proper rental controls, then rental csn often be cheaper than ownership, but the biggest fctor is that it is nore predictable with less unknowns.

 

[Freakbro]

To be fair this is a computer enthusiasts forum,even though it's GD, so I would expect it to attract the wealthier end of the spectrum. Even though I'm **** poor I still try and save a bit every month.

Yea, I save between 10 - 50% of my earnings......depending on how many Michelin star restaurants I've been to that month

 

[Uther]

Yea, I save between 10 - 50% of my earnings......depending on how many Michelin star restaurants I've been to that month

I'm on 10%, and happy enough with that, although that amount will be a pittance to a lot of people. I'd be surprised if anyone on the forum could literally not save anything. Even pennies add up.

 

[Andreworex]

I have a very modest 3 bed home which only costs £400 a month mortgage, 3 years left on that with the house worth around £200k, my partner lives with me and pays towards bills at £300 a month so our bills and expenses are low, no other debts and 10 year old car.

I save around £2k a month into a mix of SS ISA and rubbish interest emergency savings, my pension gets nearly £1k a month mix with employer and my contributions.

She saves around £500 and has an NHS pension she pays into (no idea how this works or amounts) she wants to buy a house together at some point but my equity and savings massively outweigh hers so making that work and be fair is a challenge, likely to mean a higher monthly mortgage payment and me having some large sum from the sale of the current house...unless I marry her and then it doesn't matter, I guess, life eh!

 

[Surveyor]

I have a very modest 3 bed home which only costs £400 a month mortgage, 3 years left on that with the house worth around £200k, my partner lives with me and pays towards bills at £300 a month so our bills and expenses are low, no other debts and 10 year old car.

I save around £2k a month into a mix of SS ISA and rubbish interest emergency savings, my pension gets nearly £1k a month mix with employer and my contributions.

She saves around £500 and has an NHS pension she pays into (no idea how this works or amounts) she wants to buy a house together at some point but my equity and savings massively outweigh hers so making that work and be fair is a challenge, likely to mean a higher monthly mortgage payment and me having some large sum from the sale of the current house...unless I marry her and then it doesn't matter, I guess, life eh!

You can buy as tenants in common with unequal shares. Obviously you need to sort out the legal niceties.

 

[Zatoichi.uK]

4% for pension with 10% top up from company
10% on mortgage overpayment
10% to an index fund
3% to Kids ISA