STYLETHREAD -- LET'S TALK SHOP!

itsapinkthing · Coach

How much do you save?

lynnie · Chanel

25% is probably a lot more than most people! I think the old rule of thumb is 10%, plus have 6 months emergency funds. But in this economy, it's coming to light how many live paycheck to paycheck.

I save as much as I can, since I'm a single girl in my mid- 20's. I don't have the expenses a lot of people have. I guess I try for roughly 40%.. I make a budget. I think people are always a bit shocked that I'm able to buy/live exactly how I want in NYC and still save that much. I don't make a ton. But certain things I absolutely won't cut out... nice food, a yearly vacation, etc. I think those things are important to health/happiness/sanity. Instead, I try not to go out that much (I don't like it much anyway), have affordable rent, and take advantage of all the free activities in this city. I think if everyone had a cushion, saved a certain %, and spent the rest in a way that could improve their life and those around them... the economy would recover in a realistic way and people would be a lot less overwhelmed with needless "stuff". I know I'm going to spend a lot of money in the next few months when I move to a new apt (furniture, broker fee, etc), but I don't mind stimulating the economy for something I am really excited for. And I can get a lot more for my money these days... another perk to saving when times are good, and spending when times are bad :)

Kitty · Hermes

I don't know exactly what the percentage is overall, but it breakdown like this:

I put roughly 25% of my take-home pay in to a money market.
I contribute 10% of my salary to 401(k) (until I max out the yearly limit) with a $3k match per year from employer
I participate in my companies ESPP which is 15% of my salary w/ a guarantee of 15% return if I sell the day it becomes available. When I cash that out, I put it in to our money market.
All company stock grants that are cashed out are put in to money market.

My husband does 15% of his salary in to 401(k) (until he maxes out the yearly limit)
Maxes out his Roth IRA
Participates in his company ESPP at 15% w/ a 15% guarantee return and puts it in our money market when he cashes out.
All stock grants that are cashed are put in money market.

Aurora · Marc Jacobs

I fluctuate back and forth depending on what is going on. 10% goes into my 401(k) before I get my paycheck and then after that I try and put in another 20-30%. All of my tax refunds and bonuses from work go into savings for one of my earmarks - Christmas, Vacation, House, General Savings, etc. I usually spend whatever I have left over. I need to get back in the habit of doing that because lately I was paying off some other things and haven't been reimbursed for those for various reasons but should be in the next month or two. Once that happens I'll be back on track.

I think if you do 25% and bonuses you will be in good shape. Does that include your retirement though? Don't forget about adding that in.

itsapinkthing · Coach

Aurora wrote:

I fluctuate back and forth depending on what is going on. 10% goes into my 401(k) before I get my paycheck and then after that I try and put in another 20-30%. All of my tax refunds and bonuses from work go into savings for one of my earmarks - Christmas, Vacation, House, General Savings, etc. I usually spend whatever I have left over. I need to get back in the habit of doing that because lately I was paying off some other things and haven't been reimbursed for those for various reasons but should be in the next month or two. Once that happens I'll be back on track.

I think if you do 25% and bonuses you will be in good shape. Does that include your retirement though? Don't forget about adding that in.

We contribute to my husbands 401k up the max % for match. But we are also looking into IRAs.

jettie · Kate Spade

I put 12% of my salary in my 401K and save another 8% split between my money market, stock, and IRA accounts. I also try and pay down my mortgage an extra $200/month.

-- Edited by jettie on Saturday 14th of March 2009 07:03:42 PM

Kelly · Hermes

Right now I only have a savings account. I don't do any other kind of savings (401k, money market, etc) even though I realize I should.

But right now, I have 20% of my paycheck automatically deposited into my savings, so I never touch it. I also have a little bit of a weird way of figuring out how much else I put in. Basically, I can live comfortably off of X amount every two weeks. That's how much I can have in my checking account and feel totally confident doing normal things (grocery store, filling up my car, light shopping, etc.) without fear of running out of money. But it's not enough that I could go on any kind of serious spending spree. Every paycheck (which I get every two weeks, which is why X is based off of a 2-week thing), I transfer any money over X from my checking to my savings - so every day I get a paycheck, I level my checking account off to X and put any extra $$ in my savings account. So, the amount I move over every 2 weeks is different depending on how hard I spent. I try to be a conscious shopper so that I have as much leftover $$ as I can get to put in my savings every time.

If I'm paying a big bill that week, like rent or something, sometimes I might keep a little over X in my checking to cover that. Ideally I wouldn't do that, but I don't beat myself up over it.

itsapinkthing · Coach

So it sounds like 20% is average. I think once we meet with an accountant regarding his withholdings and commision we'll revise our budget and perhaps could do almost 30% to be conservative.

Vanessa · Kate Spade

edited for typos:
I've been putting 7% in my 401k for ten years and plan to go up to 10% as soon as I've bought my house and am settled. I put somewhere between 15-20% in my short-term savings, though while saving for a home I put every single extra cent there & was surprised how much that was!

-- Edited by Vanessa on Tuesday 24th of March 2009 12:16:08 PM

gingembre1 · Kate Spade

I put 8% of pre-takehome pay into my 401k, plus all or a major part of any bonuses.

I save about 25% of my takehome pay in various savings accounts - I have a "general" account, and then specific ones for car, vacation, etc. I just bought my first place, so I'm working on re-building my savings cushion.

NCshopper · Hermes

From my gross pay, here's how I save:

17% is automatically deducted into my 401(k)
6% is put into my Roth IRA
8% goes into my high interest savings account

I swear, no matter what I do, it still always feel like I'm never saving enough and never have enough fun money. Such is life, I guess!