How Much of Your Salary Should You Save? A Personal Exploration
As I navigate my financial journey in my late twenties, working in the bustling city for the past three years, I’ve found myself pondering an important question: What percentage of my salary should I consider saving each month?
While I’m not here to inquire about the specific amounts others put away, I am genuinely curious about the percentage of income that individuals allocate towards savings. 🤓
In recent months, I’ve diligently tracked my spending habits. This practice has revealed that I can typically save around 20% of my income each month—this figure does not include contributions to my ISA savings account. Living in a shared flat and maintaining a frugal approach to outings (capping my weekend expenses at roughly ÂŁ30), I’ve recently stumbled upon discussions highlighting that many recommend saving about 30% of one’s monthly earnings in London. Given my current circumstances, this suggestion feels somewhat aspirational.
Overall, it’s been a valuable exercise to reflect on my spending and savings—one that I encourage others to undertake as well. In a city as expensive as London, finding the right balance between saving and enjoying life can be quite challenging. What do you think? How much do you aim to save each month?