How much should I save per year?

[queerquirks]

good read with all the various pointers given. myself i only been working about 3 years and a tip i remember is

- getting your emergency fund established first, 6/12 months
- set a minimum percentage to save each month
- dont oversave. i made this mistake as i only am starting to read about investing now, only got Regular Savings Plan.
- also try to travel when young cause no kids and lighter responsibility now plus still got time to make money.

 

[smart_alex]

good read with all the various pointers given. myself i only been working about 3 years and a tip i remember is

- getting your emergency fund established first, 6/12 months
- set a minimum percentage to save each month
- dont oversave. i made this mistake as i only am starting to read about investing now, only got Regular Savings Plan.
- also try to travel when young cause no kids and lighter responsibility now plus still got time to make money.

now I try to save 24000 per year (throw all into investment)

 

[Midlifecrisis]

That why I am seeking what is the general percentage I shld save for my take home pay?

40%, 50%? or 60%

of cos the less I need to save the more I can spend on other stuff, for e.g. holiday, entertainment, furniture, sport etc etc

Now I just trying to save on 24 k hard cash every year in 2019, that is according to my retirement plan by 60, after calcuation I feel like a bit too much, so I want to lower to 20k

if I lower to 20k, I may nt be able to hit my target to retire at 60

but I have to suffer for 37 years

There is no percentage target I can give you because it really depends on

1) what is considered "comfort zone" for retirement at 60? 1 million ? 2 million?
2) what is the quality of life that you are looking for right now? 10 years down the road? are u a branded person? do you go for exotic adventures-nice holidays? do u want a nice car?
3) percentage is different with different earning power at different point in life.

I have low savings rate when i am young - because i have both student and mortgage loan to repay. I don't even have car until i am married with kids and overseas holiday comes about when company sent me on overseas assignment and I extend couple of days to save on air plane tickets. However, it is not the savings that contribute significantly to my total assets right now. It is buying my properties at the right time and company stock options which provided the down payment for the property. Luck and risk taking does play a factor here.

My advise on this, savings is one way for retirement but over do it until u don't enjoy living your working life. Other means to grow your retirement fund is to work hard to grow your career / earning power and remember to make some smart investment choices. This will help u to bring forward your retirement age earlier.

 

[SBC]

There is no percentage target I can give you because it really depends on

1) what is considered "comfort zone" for retirement at 60? 1 million ? 2 million?
2) what is the quality of life that you are looking for right now? 10 years down the road? are u a branded person? do you go for exotic adventures-nice holidays? do u want a nice car?
3) percentage is different with different earning power at different point in life.

I have low savings rate when i am young - because i have both student and mortgage loan to repay. I don't even have car until i am married with kids and overseas holiday comes about when company sent me on overseas assignment and I extend couple of days to save on air plane tickets. However, it is not the savings that contribute significantly to my total assets right now. It is buying my properties at the right time and company stock options which provided the down payment for the property. Luck and risk taking does play a factor here.

My advise on this, savings is one way for retirement but over do it until u don't enjoy living your working life. Other means to grow your retirement fund is to work hard to grow your career / earning power and remember to make some smart investment choices. This will help u to bring forward your retirement age earlier.

Only ruling party will know this answer.

How many yearly pole will be shifted?
How much PTC will adjust transport fare every year?
How much NTUC food court will rise?
How much medical cost will rise?
How much GST will rise?

 

[havetheveryfun]

There is no percentage target I can give you because it really depends on

1) what is considered "comfort zone" for retirement at 60? 1 million ? 2 million?
2) what is the quality of life that you are looking for right now? 10 years down the road? are u a branded person? do you go for exotic adventures-nice holidays? do u want a nice car?
3) percentage is different with different earning power at different point in life.

I have low savings rate when i am young - because i have both student and mortgage loan to repay. I don't even have car until i am married with kids and overseas holiday comes about when company sent me on overseas assignment and I extend couple of days to save on air plane tickets. However, it is not the savings that contribute significantly to my total assets right now. It is buying my properties at the right time and company stock options which provided the down payment for the property. Luck and risk taking does play a factor here.

My advise on this, savings is one way for retirement but over do it until u don't enjoy living your working life. Other means to grow your retirement fund is to work hard to grow your career / earning power and remember to make some smart investment choices. This will help u to bring forward your retirement age earlier.

you already said it yourself. luck and risk taking helped greatly in your life.

but not everyone is that lucky. what if that risk fails ? the rest of us who are not that lucky will eventually have to fall back on savings as the primary source. and for some, a bit of savings would still be required in order to take risks.

 

[Prof. Utonium]

Why don't you work backwards?

No one can really advise you correctly on the percentage.

Lets say you need $X for retirement age of Y, from there you have the period you can save till that retirement age. Calculate how much you would need to save and compound the annual returns you expect in the long term.

In fact just search for retirement calculator and play around the figures.

If you can only saves $0.5X, then find ways to earn more so you would be able to save $X. Invest in yourself before investing out.

 

[smart alex]

Thank for all the advise

Sent from Nanyang Technological University using GAGT

 

[JetStorm]

Last time i had no savings. 4k salary money in end of month left few hundreds. Only after hitting 4.5k salary then i started force savings of at least 1k every month.

My target back then was 6 months expenditure or equilvalent to about 3 months gross salary. Then i started working towards 12 months expenditure which is about 6 months gross salary.

Eventually after afew years, I managed to hit the 12 month salary mark. 6 to 12 months savings is the most siong coz of hdb reno wedding honeymoon etc.

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[Thoreldan]

I dont save a lot of cash each mth.

Instead i put 1.5k into etf + 200 to 300 cash savings each month.

Trying to accumulate my investment for the next 15-20 yrs.

Also top up 7k annually into sa using cash for tax relief

 

[starlight318]

I am trying out something new this year. Not touching my monthly take home pay at all and only spend from passive income (rental income and dividends/interests).

But I will spend all my bonus on holidays and other ad hoc expenses.

Will try this for the whole year and see if successful or not. If yes, it means I'm already halfway to achieving financial independence. Although still need a job

Might be a challenge because I will need the rental income to be sustainable, no breaks of contract etc. Dividends still more or less stable unless markets crash v jialat