What's your savings/ earnings ratio?

Disco Boy · 13 Dec 2011 at 14:00

How much do you have in savings, compared to your annual take-home salary?

i.e. divide the balance of your savings account(or isa or stocks etc.) by your post-tax annual salary.

I have about 15k of savings, and take home 18k p.a.

so 15/18 gives me a ratio of 0.83

This strikes me as fairly high, so I was wondering how other people compare?

FNGsam · 13 Dec 2011 at 14:01

How long have you been saving though? or do you save 15k out of 18k each year?

krooton · 13 Dec 2011 at 14:02

0, I can't have any savings until I have cleared all my debt

andy_mk3 · 13 Dec 2011 at 14:03

I don't have any savings, I spend what I have

MickeyFinns · 13 Dec 2011 at 14:03

Disco Boy said:
So how much do you have saved away, compared to how much you take home? (i.e. after tax salary)

I have about 15k of savings, and take home 18k p.a.

so 15/18 gives me a ratio of 0.83

This strikes me as fairly high, so I was wondering how other people compare?

Would make more sense to compare how much you save each month against monthly earnings surely?

15k savings against 18k p.a. completely ignores how long it took you to amass that.

Anyway to still contribute to the thread I save about 35% of my monthly pay.

arctine · 13 Dec 2011 at 14:06

£67000 in savings.

Earn £32000 a year.

So round 2.0?

Not bad at 21. If anyone was wondering, I don't want to get a mortgage.

yer_averagejoe · 13 Dec 2011 at 14:07

on average about 30% of my net pay.

Rameses · 13 Dec 2011 at 14:07

Savings?

redeye_uk · 13 Dec 2011 at 14:12

I save 2k a month which is about 25% of net pay

Slumberbox · 13 Dec 2011 at 14:13

It's a fairly useless ratio really you might have someone who earns £45k only has 3k in savings but has 30k in easily saleable assets such as Rolex watches and a couple of sought after sportscars.

Disco Boy · 13 Dec 2011 at 14:13

MickeyFinns said:
Would make more sense to compare how much you save each month against monthly earnings surely?

15k savings against 18k p.a. completely ignores how long it took you to amass that.

Anyway to still contribute to the thread I save about 35% of my monthly pay.

Well I could say either 21 years because I am 21. Which gives a pointless value. Or I could say 3 months because I am that far into my first "job" (which isn't really a job because I am a postgraduate student).

So I decided to go with a simple ratio. So what is yours then?

arctine · 13 Dec 2011 at 14:15

Disco Boy said:
Well I could say either 21 years because I am 21. Which gives a pointless value. Or I could say 3 months because I am that far into my first "job" (which isn't really a job because I am a postgraduate student).

So I decided to go with a simple ratio. So what is yours then?

You paid off uni fees?

Andy__C · 13 Dec 2011 at 14:15

Too many hobbies & interests, a nice house, a decent social life = no savings to really mention of.

I put things away - but its a holiday/fun fund rather than true savings.

Unless a pension counts.

Slumberbox · 13 Dec 2011 at 14:16

redeye_uk said:
I save 2k a month which is about 25% of net pay

I'm not massively clued up on It jobs but isn't a web developer someone who designs websites and maintains etc, doubt that commands a six figure salary.

cm1179 · 13 Dec 2011 at 14:16

FNGsam said:
or do you save 15k out of 18k each year?

WHA?!

Bunka · 13 Dec 2011 at 14:16

I don't have savings, I have a mortgage. Arguably a wiser choice than savings anyway

SMN · 13 Dec 2011 at 14:17

About a grand savings if i am lucky.

Freefaller · 13 Dec 2011 at 14:18

I'm currently putting aside anything from £200-£500 a month after all bills, shopping, loans, credit card etc... are paid.

Slumberbox · 13 Dec 2011 at 14:21

arctine said:
£67000 in savings.

Earn £32000 a year.

So round 2.0?

Not bad at 21. If anyone was wondering, I don't want to get a mortgage.

I'm genuinely interested how this came to be, I'm going to assume you don't have a university education under your belt, when I was that age I was in a much worse position, how do you maintain discipline not to spend it, where you given assistance from friends and family?

Hotwired · 13 Dec 2011 at 14:22

Oh after tax...

About 1.6 over about 3 years.

Aside from one-off splurges on expensive hardware I don't do much with money.