How much should I save per year?

[smart_alex]

if my take home pay per year is $42240, how much I save per year for retirement is consider reasonable?

My monthly expense is 1200
So annual expense is 1200 * 12
= $14400

 

[TabascoSauce]

List down ur necessary spending first then set aside an amount for discretion spending like bringing family to restaurant, overseas trip etc. Also set aside some buffer for unexpected spending.

Save/invest the rest.

However, If u r saving less than 25% of ur take home. Then assess if u r living within ur means or not.

 

[smart_alex]

List down ur necessary spending first then set aside an amount for discretion spending like bringing family to restaurant, overseas trip etc. Also set aside some buffer for unexpected spending.

Save/invest the rest.

However, If u r saving less than 25% of ur take home. Then assess if u r living within ur means or not.

is it too much if I save/invest 50% of my income?

 

[chopra]

agree to track ur approx spending first. no point aiming to save 422239 if u need to spend more than $1 a year.


i personality had approx tracked my household for 2 months -- car, insurance, food, parents' allowance, holidays, enrichment prog , kids' spend and so on

 

[BBCWatcher]

is it too much if I save/invest 50% of my income?

Maybe. As one straightforward example, if that savings rate means you're skipping genuine insurance needs (not luxuries), and then you experience an uninsured but insurable catastrophe, that wouldn't be good. As another example, it's certainly possible to underinvest in education, thus doing serious damage to your future earning potential. (It's also possible to overinvest in education.)

 

[revhappy]

You shouldn't target a percentage. You must determine your expenses and based on that try and increase your income. In my case I saved about 65k last year on an income of 120k gross, including bonus.

 

[Toni90]

if my take home pay per year is $42240, how much I save per year for retirement is consider reasonable?

Save for retirement is overhype by those agents. For retirement, u only need to do a few things:

- Both husband and wife working until retirement age.
- Buy house with your OA only.
- Put 7K+7K to SA every year until full.

Then you can spend the rest of the money as you want. You want to be rich or retire early, can save and invest.

 

[FT PRIDE]

Work out how much you Need to survive. The rest will be easier.

 

[revhappy]

Save for retirement is overhype by those agents. For retirement, u only need to do a few things:

- Both husband and wife working until retirement age.
- Buy house with your OA only.
- Put 7K+7K to SA every year until full.

Then you can spend the rest of the money as you want. You want to be rich or retire early, can save and invest.

My wife is a SAHM. If my wife also work, I guess I would have retired by now at 39 I guess, lol. Imagine she brought in even 50k each year for the last 10 years that is 500k and some appreciation 700k. My current networth would be like 1.5M instead of 800k

 

[TabascoSauce]

is it too much if I save/invest 50% of my income?

As Long as u r not skimping on necessary spending such as insurance as bbcwatcher highlighted or the occasional treats for ur loved ones, there’s no such thing as saving/investing too much.
For reference, my saving rate is more than 50% of my take home

 

[Toni90]

My wife is a SAHM. If my wife also work, I guess I would have retired by now at 39 I guess, lol. Imagine she brought in even 50k each year for the last 10 years that is 500k and some appreciation 700k. My current networth would be like 1.5M instead of 800k

How much did your in-law give u when married?

 

[smart_alex]

My monthly expense is 1200
So annual expense is 1200 * 12
= $14400

Sent from Nanyang Technological University using GAGT

 

[TabascoSauce]

My monthly expense is 1200
So annual expense is 1200 * 12
= $14400

Sent from Nanyang Technological University using GAGT

If u save 50% and spend 14k, where is the other 7k?

 

[BBCWatcher]

Save for retirement is overhype by those agents. For retirement, u only need to do a few things....

I disagree. CPF has a lot of positive attributes, but retirement adequacy is not one of them, assuming typical lifestyle expectations.

 

[mummy1234]

I hope to save 40% of my income this year or S$6k out of S$15k...

 

[cscs3]

I disagree. CPF has a lot of positive attributes, but retirement adequacy is not one of them, assuming typical lifestyle expectations.

Lifestyle is very individual. But before one talk about lifestyle, he/she need to think what to maintain the basic living first. This is where CPF come in.

 

[cscs3]

My monthly expense is 1200
So annual expense is 1200 * 12
= $14400

Sent from Nanyang Technological University using GAGT

Are you still a student?

 

[smart_alex]

Are you still a student?

working adult

student where gt earn so much

 

[smart_alex]

If u save 50% and spend 14k, where is the other 7k?

buy some furniture, holiday item, I treat it as spare cash

 

[alexkh]

See you are which priority type i think..

#1) Income - Expenses = Saving

or

#2) Income - Saving = Expenses


The savings per month for #1 will be more irregular one, some months more, some months less.


WO SHI type 1 tho.. but at least can save 2k / month