How much should I save per year?

[smart_alex]

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

what if certain month u need to spend a few k go oversea?

will it affect your saving plan?

 

[Oldnerd79]

what if certain month u need to spend a few k go oversea?

will it affect your saving plan?

I only use my year end bonus on discretionary spending like holidays so monthly savings are more or less fixed.

Good way to force yourself to save a regular amount each month. Less bonus means less $$ for the nice to have but not mandatory things.

 

[alexkh]

what if certain month u need to spend a few k go oversea?

will it affect your saving plan?

My savings are meant for that certain month need go overseas and spend a few k.

I don't have alot of adhoc / unplanned trips. So nope.

 

[smart_alex]

My savings are meant for that certain month need go overseas and spend a few k.

I don't have alot of adhoc / unplanned trips. So nope.

my saving is for long term saving AKA retirement

for example, my target to save 20 k per year, and cannot touch the money until 65

 

[moejoseph]

my saving is for long term saving AKA retirement

for example, my target to save 20 k per year, and cannot touch the money until 65

That is quite discipline of you. But do make sure you have enough emergency/flexible fund in case you need them.

 

[alexkh]

jiayous!! Need to have discipline

 

[smart_alex]

I know, save 20k per year is it "too much"? My insurance is keep to bare minimum becos of it

Sent from Nanyang Technological University using GAGT

 

[BBCWatcher]

I know, save 20k per year is it "too much"? My insurance is keep to bare minimum becos of it

What do you mean by "bare minimum" insurance?

Look, the ideal outcome that most people would like to achieve is to end up enjoying life as much as possible throughout life. Starving (metaphorically at least) for 50 years followed by 3 years of "partying" followed by decades more of "starving" isn't what most people would like. So yes, you can save "too much." It's fun to enjoy what money can buy, at least once in a while, both now and in the future -- although money cannot buy happiness per se, but it can contribute to happiness to a degree.

What would make you happy, both now and for the rest of your life?

 

[starlight318]

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.

How do you manage to save so much? 65k is after CPF right? Meaning you are saving more than 70% of your income and only spend 35k a year? you have other source of income outside that 120k?

 

[rrr2015]

set save/invest target and spend the rest. review & adjust allocation annually. may take few years to reach optimium allocation for yourself

what if certain month u need to spend a few k go oversea?

will it affect your saving plan?

 

[Midlifecrisis]

I know, save 20k per year is it "too much"? My insurance is keep to bare minimum becos of it

Sent from Nanyang Technological University using GAGT

I think you should apportion by percentages of your salary instead of having an absolute value for saving. It is difficult to save a lot during the early years of working when your salary is low. As your career progresses and income increases, the saving will increase and you can allocate higher percentage to savings. When you get married and have kids, the saving rate may go down because of additional expenses. You have to tune your saving rate based on which stage of life, your income and your personal expectations for big ticket items like car, condo and kids education.

 

[hwmook]

How do you manage to save so much? 65k is after CPF right? Meaning you are saving more than 70% of your income and only spend 35k a year? you have other source of income outside that 120k?

He is not a Singaporean, he doesn't have CPF.

 

[BBCWatcher]

He is not a Singaporean, he doesn't have CPF.

Right, so translated into Singaporean/PR terms, it’s basically like matching all CPF savings (employer and employee) dollar for dollar with additional savings. It’s a high savings rate at Revhappy’s income level, but it’s sometimes possible.

That’s not precisely the right comparison either, but that’s pretty close. Revhappy isn’t getting the tax breaks on CPF, he’s only effectively getting part of the employer contribution (it’s complicated), he’s got some higher medical expenses, and he gets no subsidized housing contribution (HDB BTO) to wealth accumulation, as examples. He’s also got more risk that the income flow will abruptly and unceremoniously end, and with 30 days to say goodbye, so that’s an even stronger reason to save more while it’s possible to save more. (When the harvest is abundant, fill up the grain stores — same basic principle, an ancient one.) On the other hand (and not a criticism of CPF since on balance it’s a great deal), Revhappy can be somewhat more aggressive, and in a low cost way, in his investing. CPF is bond-like, but Revhappy can more easily (and more affordably) tilt more into stocks if he wishes. And he’s also got a right of abode in a much lower cost retirement country, and it’s reasonable to forecast that that significant cost difference will remain for many years to come.

 

[smart_alex]

I think you should apportion by percentages of your salary instead of having an absolute value for saving. It is difficult to save a lot during the early years of working when your salary is low. As your career progresses and income increases, the saving will increase and you can allocate higher percentage to savings. When you get married and have kids, the saving rate may go down because of additional expenses. You have to tune your saving rate based on which stage of life, your income and your personal expectations for big ticket items like car, condo and kids education.

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

 

[d9_lives]

I think it depends on your earning and lifestage.

We're 36y & 35y, supporting both of our parents (inc. their insurances).
We save approx. 65-75% of our take home pay and passive income.

 

[djchris]

To TS: As long as you have adequate insurance coverage, save everything else since your expenses look really low and decent. Above 50% is no big deal. Don't worry. You're doing good!

 

[havetheveryfun]

just save 1-2k per month at the start is good enough.. slowly then you can adjust when you feel is too much or too little..

life is short

 

[tangent314]

Saving doesn't really have to be that complicated. For us, it's as simple spending as little as we can except for the occasional indulgences when the price is right, and saving everything that is not spent. There is no target of how much to save.

 

[madtari]

As what many had suggested, you should first of all track down ur expenses then you will be able to know which area are your top spending and whether should u cut down on them... and then u can decide whether you are saving enough.

I started tracking mine from late 2017. So 2018 was the 1st full year of tracking. Delighted to realise that I have saved 145k from a total package of 200k (100k was from bonus, this is a bumper year for me. Normally bonus should be only around 50k).

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

 

[starlight318]

Target saving this year would be around 54% of take home income including passive income. This will be the savings rate for the rest of my working life as I don't foresee my salary to go up substantially. Hopefully expenses don't crawl up too much and I should be able to FIRE by 50.