Question for Middle Class folks.

[florige]

How much $ a month would you find acceptable as a surplus for savings after all of your MAJOR bills have been paid for? ie:Car,Rent,Mortgage, Utilities, cell phone, etc... And what is the minimum you would want to have left? Not to count out the richers here, but the numbers you guys will prob come up with would probably out match my paychecks for the month. lol

[florige]

Until something pops out of the ordinary and screws you.

[Whisky Dog]

Couple hundered a month would give you 2400 a year savings, not high but it depends on how your finances are.

[florige]

I'm just a person that always like to have something in savings just in case the unexpected happens. I am not against credit cards, but having your own $ always helps imo. Breaking even I guess is okay as long as unexpected crap like your car, or if you have a house having to get repairs doesn't come up.

[desflood]

We try to channel $100 monthly into savings. Of course, said savings is wiped out every time something goes wrong with one of the cars or the house :lol

[Drachen]

I map out all expenditures (not just the "big ones"), this includes gas, groceries, cell phones, even spending money (I pay myself a $75 allowance twice a month). After all of that I try to get about 300-400 in the savings account every month. I will do this until I have 6 months worth of bills saved, then will probably increase my allowance and decrease the amount going into savings (probably 125 per paycheck allowance for myself, and my wife, and about 100-200 into savings).

[florige]

florige, mrsmaalox+, coyotes_geek, Spurstro, Das Texan, marini martini+



Maalox you aren't allowed in this thread because your numbers will more than likely send me into a deep depression. :depressed:lol J/k

[coyotes_geek]

Between retirement savings and regular savings my wife and I are setting aside about 15% of our income.

[mrsmaalox]

florige, mrsmaalox+, coyotes_geek, Spurstro, Das Texan, marini martini+



Maalox you aren't allowed in this thread because your numbers will more than likely send me into a deep depression. :depressed:lol J/k

Believe me, it depresses me too!

[jack sommerset]

save 30 percent of your paycheck.

[florige]

I normally am okay up until the winter months when my utility bills usually skyrocket. :greedy

[boutons_deux]

During the bubble, and it's probably only a little better now, avg household debt was about 115% of household income.

The US household/personal savings rate has been under 5% for 15 years. The worse the economy is, the higher the savings rate.

http://research.stlouisfed.org/fred2/data/PSAVERT.txt

When 70% of the GDP is consumers buying "instant gratification" shit, then it's treasonous if you don't, in dubya's immortal words of national security, "Just Go Shopping". :)

[florige]

During the bubble, and it's probably only a little better now, avg household debt was about 115% of household income.

The US household/personal savings rate has been under 5% for 15 years. The worse the economy is, the higher the savings rate.

http://research.stlouisfed.org/fred2/data/PSAVERT.txt

When 70% of the GDP is consumers buying "instant gratification" shit, then it's treasonous if you don't, in dubya's immortal words of national security, "Just Go Shopping". :)



Its funny you mention that because while I have been debating buying a flat screen television for like 2 years now you would never know people were supposedly struggling if you happened to be in a Walmart on a weekend. Sometimes if I am on duty there like for OT or something, I think to myself, what the hell kind of jobs do these people have where they can go out and spend like this. Maybe I am just cheap or something. When I was younger and still lving home I didn't give a crap if I lived paycheck to paycheck.

[smeagol]

I save in Argentine pesos

[Wild Cobra]

I have direct deposit, and each payday, I have my credit union move $100 to savings. That's $2,600/yr.

[marini martini]

A brand new, shiny quarter, works for me!:toast

[Drachen]

Its funny you mention that because while I have been debating buying a flat screen television for like 2 years now you would never know people were supposedly struggling if you happened to be in a Walmart on a weekend. Sometimes if I am on duty there like for OT or something, I think to myself, what the hell kind of jobs do these people have where they can go out and spend like this. Maybe I am just cheap or something. When I was younger and still lving home I didn't give a crap if I lived paycheck to paycheck.


I will admit that when I bought my house 2 years ago, my "gift" to myself was a 50 in Samsung DLP HDTV. I purchased it the day after I signed the papers. As anyone can see by the "DLP", I didn't get the most expensive model, and I did my due dilligence to make sure I got a great deal (I even got 3 years no interest on it). Due to all of this I was able to make this purchase and spend only $30 a month on it (paid off this November, interest free period is up in April).

I know, though, what a way to celebrate the taking on of a huge amount of debt, by going out and racking up more debt. Moment of weakness and all.

[SpursStalker]

I get paid on the 15th and end of the month.

When my end of the month check hits the bank, whatever I have left from the 15 in there automatically goes into savings. Some times its a few hundered dollars and some time its under a 100.

[Drachen]

This is very good start. Everyone should start out paying themselves 10%, first. You don't have to be middle class to accomplish this. I'm up to around 30%, and would like to get to 50%. Of course, the more money you make, the more you can save, or not.

Yeah, all said, if you include the savings, and the money that goes into my investment account, and retirement then we are saving about 14%. If we get raises this year, the biggest change in our lifestyle will be more money added to our retirement. Depending on the size of the raises (if any), we may get a second car since we will be paying off our truck in May (2 years early!).

[coyotes_geek]

This is very good start. Everyone should start out paying themselves 10%, first. You don't have to be middle class to accomplish this. I'm up to around 30%, and would like to get to 50%. Of course, the more money you make, the more you can save, or not.

That's exactly how my father phrased it to me. Approach savings like it's a bill that you have to pay every single month and you stand a much better chance at being a good saver than someone who looks at savings as just whatever money is left over at the end of the month.

[Viva Las Espuelas]

I get paid on the 15th and end of the month.

When my end of the month check hits the bank, whatever I have left from the 15 in there automatically goes into savings. Some times its a few hundered dollars and some time its under a 100.

Hmm. That's a good routine.

[Thunder Dan]

I try to put away atleast $450 a month- $250 a month in the summer, in a liquid cash savings not counting my IRA.

I found that just watching little things like going out for lunch and dinner allow you to save alot more than you would think. Also getting rid of credit cards makes you save alot more too. I switched to an AMEX just so I couldn't get myself into trouble. I have a Visa for emergencies, but I haven't even taken it out of my wallet in 2 years

[Spurminator]

We're putting quite a bit into savings right now because we have two cars paid off, no kids yet, and we're spending about the same amount of money we spent five years ago when we were making half what we make now.

Once we have kids, new cars and our next home, I would still want to be putting at least $600 a month (not counting 401K's) into savings, hopefully more.

[SpursStalker]

Hmm. That's a good routine.

Actually I do it for the 15th as well.

Whatever is left when the next check comes goes ...

[Soul_Patch]

I map out all expenditures (not just the "big ones"), this includes gas, groceries, cell phones, even spending money (I pay myself a $75 allowance twice a month). After all of that I try to get about 300-400 in the savings account every month. I will do this until I have 6 months worth of bills saved, then will probably increase my allowance and decrease the amount going into savings (probably 125 per paycheck allowance for myself, and my wife, and about 100-200 into savings).


This is about exactly what we do

I have a spreadsheet i made back when i went to college, we still use it today for our budget.

I allow $1000 every paycheck (1st and 15th) for Gas, Groceries and Spending money, and $150 a paycheck into savings. My goal is to get the savings to $10,000, then i can divert that money into other forms of investment. This isnt counting the 6% that comes off the top from payroll deductions into 401k. This is just a liquid cash account for emergencies and what not. In the span it will take to reach 10k, i may increase the amount allotted to savings, but not decrease it.

[florige]

My problem is the little small crap. I am good at researching and being cheap towards my large purchases. The thing that kills me is the $20 a night I average between lunches and snacks (please hold the doughnut jokes. lol) That averages out to over $500 a month in wasteful spending. After all my bills are paid I roughly average out around $1000 a month surplus. But that is before gas, food and misc... But the last few months unforseen stuff has been coming up like repairs to my car, property taxes, that keeps me from saving anything.

[Soul_Patch]

My problem is the little small crap. I am good at researching and being cheap towards my large purchases. The thing that kills me is the $20 a night I average between lunches and snacks (please hold the doughnut jokes. lol) That averages out to over $500 a month in wasteful spending. After all my bills are paid I roughly average out around $1000 a month surplus. But that is before gas, food and misc... But the last few months unforseen stuff has been coming up like repairs to my car, property taxes, that keeps me from saving anything.

While we are still prone to splurge and go off our plan, i have found that writing things down and keeping track really help to alleviate this.

I know what you mean though. End of the week, or month, or whatever you look at where the money went, its sick to see how much just gets pissed away.

We are saving for a vacation in October with some friends to the Caribbean...When we bitch and say we dont have enough money to add to the trip fund, i can just look and see how much was spent on a coffee here, or a snack there...and that just about adds up to another day/night in paradise....

[Mel_13]

My problem is the little small crap. I am good at researching and being cheap towards my large purchases. The thing that kills me is the $20 a night I average between lunches and snacks (please hold the doughnut jokes. lol) That averages out to over $500 a month in wasteful spending. After all my bills are paid I roughly average out around $1000 a month surplus. But that is before gas, food and misc... But the last few months unforseen stuff has been coming up like repairs to my car, property taxes, that keeps me from saving anything.

Those that have suggested a percentage have it right. It is a matter of changing your mindset. You must save and then live on the rest (assuming you have a surplus after required spending, which you say you do) rather than save whatever is left after you spend.

Calculate 15-20% of your after tax income and set up automatic transfers in that amount from checking to savings. That way you treat savings as a bill on the level with rent, utilities, insurance, etc. It does not compete with lunches, snacks, and misc.

Don't adjust your savings to your discretionary spending, adjust your discretionary spending to your savings.

[Drachen]

My problem is the little small crap. I am good at researching and being cheap towards my large purchases. The thing that kills me is the $20 a night I average between lunches and snacks (please hold the doughnut jokes. lol) That averages out to over $500 a month in wasteful spending. After all my bills are paid I roughly average out around $1000 a month surplus. But that is before gas, food and misc... But the last few months unforseen stuff has been coming up like repairs to my car, property taxes, that keeps me from saving anything.


Ok, for gas, every paycheck I go and put $85 on a walmart gift card and use that to get gas (it is usually less, but once the "extra amount" reaches $85 then I can put an extra 85 into savings). As far as groceries, I allot $300 a month for that (family of 4). If I want to eat out, it comes out of my allowance so I don't do that very much. I have a loaf of bread at work, along with mustard lunch meat and cheese and that is what I eat every day (outside of the fruit I bring). Saves a ton of money, and it has helped with me losing weight.

[101A]

How much $ a month would you find acceptable as a surplus for savings after all of your MAJOR bills have been paid for? ie:Car,Rent,Mortgage, Utilities, cell phone, etc... And what is the minimum you would want to have left? Not to count out the richers here, but the numbers you guys will prob come up with would probably out match my paychecks for the month. lol

Works for all income classes:

Put 15% from each paycheck into retirement/kids education savings.

Have 10 years salary (minimum) in life insurance if you have dependents.

Keep 3 months complete living expenses in liquid reserve.

Spend the rest.

[Soul_Patch]

Those that have suggested a percentage have it right. It is a matter of changing your mindset. You must save and then live on the rest (assuming you have a surplus after required spending, which you say you do) rather than save whatever is left after you spend.

Calculate 15-20% of your after tax income and set up automatic transfers in that amount from checking to savings. That way you treat savings as a bill on the level with rent, utilities, insurance, etc. It does not compete with lunches, snacks, and misc.

Don't adjust your savings to your discretionary spending, adjust your discretionary spending to your savings.


Yeesh...wish i could save 15% or more...some day, but right now its more like 5% (not counting 401k and sons college plan).

[florige]

While we are still prone to splurge and go off our plan, i have found that writing things down and keeping track really help to alleviate this.

I know what you mean though. End of the week, or month, or whatever you look at where the money went, its sick to see how much just gets pissed away.

We are saving for a vacation in October with some friends to the Caribbean...When we bitch and say we dont have enough money to add to the trip fund, i can just look and see how much was spent on a coffee here, or a snack there...and that just about adds up to another day/night in paradise....



:lol Exactly. That little unnecessary crap adds up quick when you aren't paying attention and like you said at months end you are thinking to yourself wtf?! I am going to try that writing down my purchases method.

[coyotes_geek]

My problem is the little small crap. I am good at researching and being cheap towards my large purchases. The thing that kills me is the $20 a night I average between lunches and snacks (please hold the doughnut jokes. lol) That averages out to over $500 a month in wasteful spending. After all my bills are paid I roughly average out around $1000 a month surplus. But that is before gas, food and misc... But the last few months unforseen stuff has been coming up like repairs to my car, property taxes, that keeps me from saving anything.

The small stuff is definitely the hardest to get control of. Hell, just getting rid of Starbucks and only ordering water at restaurants has put well over $100 a month back in my wallet. My wife and I will also come up with incentives for things. Like if I bring my lunch to work 4 days in a week we'll go out to eat at a nicer restaurant on the weekend. I've found that it's easier to sacrifice the little things that add up if you give yourself some kind of a tangible reward for doing so.

[Mel_13]

Yeesh...wish i could save 15% or more...some day, but right now its more like 5% (not counting 401k and sons college plan).

I would count retirement and education savings. If you're doing that plus saving some more besides, you're definitely on the right track.

[florige]

Ok, for gas, every paycheck I go and put $85 on a walmart gift card and use that to get gas (it is usually less, but once the "extra amount" reaches $85 then I can put an extra 85 into savings). As far as groceries, I allot $300 a month for that (family of 4). If I want to eat out, it comes out of my allowance so I don't do that very much. I have a loaf of bread at work, along with mustard lunch meat and cheese and that is what I eat every day (outside of the fruit I bring). Saves a ton of money, and it has helped with me losing weight.



See here is a prime example right here. $300 for a family of four! $500 for one douche who can't control his spending. Freakin ridiculous. I used to have a pretty good method. Well you guys may think it was ludacris, but I used to save alot more money. I had NO debit card. I used to just transfer $ from my bank to a credit card on Sunday so by Tuesday my normal day off I would have some $ to spend. If I ever blew through it by Friday I would just be screwed because you couldn;t do tranfers on the weekend. The only thing on my bank statements were checks and montly stuff. Whole thing was probably around 1 page long if... I got the debit card, about 7 pages worth of bs. I don't use my credit cards for anything now, but that method worked for me because every week I would put a certain amount on there and just turn around and pay it right back off the following week. I don't have any dependents or anything so there is no excuse why I shouldn't be able to save.

[florige]

Works for all income classes:

Put 15% from each paycheck into retirement/kids education savings.

Have 10 years salary (minimum) in life insurance if you have dependents.

Keep 3 months complete living expenses in liquid reserve.

Spend the rest.



Oh yeah I def know it works for everyone. I just wanted to get a round about $ amount from people in the "middle class" tax bracket verses someone who is considered "upper class" due to their earnings whereas they might have a number somewhere alot higher on what they expect to have going into savings each, week, month, year, etc.. . The responses I got here are pretty close to what I was thinking.

[jman3000]

1 check to rent (leftovers go to spending money). 1 check to gas/groceries/utilities/other bills. 1 check entirely to savings. 1 check I split and put half in savings and the other half to spending money. In the months where there are 5 pay days (April :king) , that extra check goes directly into my IRA.

Every month my savings amount must be at least 500 dollars more than the previous month and I can't withdraw/transfer money from my savings if it goes below a continuously rising minimum.

have no car payment, have no kids, and I'm a cheapo, so I've been able to save up quite a bit in a relatively short amount of time.

[DarkReign]

I map out all expenditures (not just the "big ones"), this includes gas, groceries, cell phones, even spending money (I pay myself a $75 allowance twice a month). After all of that I try to get about 300-400 in the savings account every month. I will do this until I have 6 months worth of bills saved, then will probably increase my allowance and decrease the amount going into savings (probably 125 per paycheck allowance for myself, and my wife, and about 100-200 into savings).

Ask, florige, and ye shall receive.

You need to speak in percentages. Add up all your monthly expenses (food, gas, bills, cigarettes, booze, hookers, etc), multiply by 12, then divide by 52.

Bam. Weekly budget...in the bag. Whatever is "leftover" is what you can save or spend, or some combination of both.

[Ed Helicopter Jones]

We're putting quite a bit into savings right now because we have two cars paid off, no kids yet, and we're spending about the same amount of money we spent five years ago when we were making half what we make now.

Once we have kids, new cars and our next home, I would still want to be putting at least $600 a month (not counting 401K's) into savings, hopefully more.

$600-$800 a month in cash on top of retirement is my 2010 goal as well. My 401k has been so crappy that I still contribute about 5% of my income to it, but I don't even open the statements lately because it's just too depressing.

[ashbeeigh]

When I was working I'd throw $120 in savings, end up using about $400 on bills and essentials and the rest was used for other stuff. So, for my $886 paycheck I had....about $366 left over. I wouldn't always spend it all but it was there and it seriously helped me throughout this period...not spending it all.

[ploto]

I have always tried to live on 70% of my take-home income; with 20% going to savings and 10% to church and charity.

[TDMVPDPOY]

my mom was a low income earner....15k-20k per annum as childcare worker

everything went to bills, rent, food...

watever is left over or she would try and set aside 600 to put in 4childrens managed funds locked up to matured date of 18yrs old...all 4 accounts already matured

that extra money you have left aside, make it earn money instead of leaving it doing jackshit...