How much of your paycheck do you put into savings?

[HamSandwich]

Hello guys,
So just wanted to take a quick survey and see how much everyone actually saves from their paycheck. Do you automatically put a set amount/percentage every paycheck into your savings? I feel like I'm not saving enough and was just wondering what you guys think would be a good and reasonable percentage of your paycheck to save? Thanks!

[disneysteve]

I designate 20% of my gross pay every two weeks for savings. That money goes to a few different places. My wife has 50% of her gross pay every two weeks going into her 401k.

[disneysteve]

As to what would be reasonable, I like the 50-30-20 formula. That is 50% for needs, 30% for wants and 20% for savings. Of the savings, I'd say 15% for retirement and 5% for other goals (vacation, car, emergency fund, etc.).

[Inkstain82]

45% of our budget is non-debt regular monthly expenses.
22% is regular, monthly debt minimum payments (student loans, repaying a family member who loaned me money for one semester, and car payment).

The remaining 33% is going to savings for the moment, but we're closing in fast on our designated e-fund level, and once we reach that, it'll start going to debt payments as well.

[srblanco7]

We're between 20 and 25% of gross pay for savings.

[kork13]

For now, about 32% goes automatically to savings/investments, whether that's my EF, Roth, TSP, or a couple other accounts... However, once my roommates move out later this year, that's going to temporarily drop (for 3-5 months) to 17% until I also move and get a cheaper place on my own.

What's reasonable? I agree with DS and srblanco -- my goal is to always save at least 20%, preferably 25% or more. However, for someone who's still trying to whittle down expenses and such, you might only start out saving 15%, or maybe even less. Just work up to 20%-25% over time if necessary.

Also, I find the best way BY FAR is to set up automatic transfers from your checking account into whatever savings vehicles you may have. Doing it automatically makes it simple for you, and also more transparent--you start to not even notice it's gone if you never even see it in the first place.

[ScrimpAndSave]

About 78% goes into saving. But I am in super save mode.

[MonkeyMama]

You are sure going to get a lot of different answers here. Really depends on both your income and expenses. Depends what you are saving for, etc.

Right now we save 20% of income for known expenses within the year (insurance, taxes, expected car repairs, vacation, expected medical, dental, etc).

We save about 10% for the more long-term future. We have young kids and a home so lots of foreseeable expenses to save for. (Car purchases in cash, home repairs, orthodontia, unexpected car repairs and medical bills, etc.) We don't use credit so save cash for all these things. Of course, without debt payments, it's easier to come up with.

16% to retirement - we always saved at least 10% to retirement. We contribute more as our income increases, with time.

It's all automatic - pay myself first!

[kork13]

About 78% goes into saving. But I am in super save mode.

wow! very nice

[HamSandwich]

thanks guys for all the replies! i think im gonna start with 20% and work my way up. i just recently started a job and i already see myself spending paycheck to paycheck. and it doenst help that i get paid every week! so hard to save ><

[kork13]

thanks guys for all the replies! i think im gonna start with 20% and work my way up. i just recently started a job and i already see myself spending paycheck to paycheck. and it doenst help that i get paid every week! so hard to save ><

As I said, the best way to get around this is to automate your savings. Will your employer/HR dept allow you to made a direct deduction from your paycheck into a savings account, or into whatever accounts you plan to use? If not, set up automatic transfers that take out the amount you want to save from your primary account on the same day that you get paid (every Friday, every Monday, or whatever)--most all banks will let you do this. For many people, money gets spent just because it's known to be there. If it's not in your account, know that you can't spend it.

[skydivingchic]

15% of my paycheck goes directly into 401(k). Approximately 5% of my gross pay goes to a Roth IRA. Another 13% of my gross pay gets deposited into a savings account for my EF and personal savings (new to me car and vacations). I also have sinking funds for things like car repair and medical bills which amount to about 5% of my gross pay.

[gekkoplus]

37% Savings (Retirement, Employee stock purchase)
26% Rent
22% Debt
10% Bills, Grocery etc. (Needs)
5% Booz (Wants)

[Pitman]

Well I used to put about 43% of my income towards savings, but then I was tired of feeling deprived, and miserable, and cut that down to about 25%.

[glock35ipsc]

15% to retirement, and amount to the "saving for XXXX" varies each month.