barrabus Posted August 4, 2009 Share Posted August 4, 2009 15 save more than £5000. a month there are some bullsh@ters on this site. Quote Link to comment Share on other sites More sharing options...
Rachman Posted August 4, 2009 Share Posted August 4, 2009 You've only got half the story on income tax. If you're over 50 (55 from next year), you can not only cash in, you can launder earnings every year through a pension and thus avoid tax on it. And younger folks can build up a tax-free income using VCTs.As for how much you need to earn to save £5000/month, let's see. At a rough guess, £5000 after tax is about £92-93k earned income (taking out complications like benefits). But here's the clever bit: you can earn less than that £92k and put that £5000/month into tax-saving investments, and you'll get enough back from the taxman to live on. And build up that tax-free income at the same time. You were doing well till you said VCTs as a tax free income. I prefer to put my money all on black.VCTs are an almost unregulated casino - unless you REALLY know what you are doing, you may as well give your money to Boris and his friends to invest in some moody pharmacueticals Quote Link to comment Share on other sites More sharing options...
Wait & See Posted August 4, 2009 Share Posted August 4, 2009 15 save more than £5000. a month there are some bullsh@ters on this site. Maybe they're daytraders........... I take you point. Quote Link to comment Share on other sites More sharing options...
Danny Deflation Posted August 4, 2009 Share Posted August 4, 2009 It varies. When I was in my twenties I saved NOTHING. Spent what I earnt, and if I was short I put it on my credit card, which always had an outstanding balance. When I hit thirty I decided that enough was enough, spent a couple of years working hard to pay off my debts and then started saving. I'm now 34, and save anything from 50 to 500 pounds a month. I don't have a set amount - I just try to squirrel away as much as possible. I have two savings accounts: one for the short term (holidays, new laptop, etc, if I want something I save for it) and one long term (where I put the money in and forget about it). I have a mortgage (sorry!), and may eventually use my long-term savings to pay down a chunk of my mortgage. Quote Link to comment Share on other sites More sharing options...
winkie Posted August 4, 2009 Share Posted August 4, 2009 Why is there no negative category for those of us with a large fund built up in better times, but who are now living in reduced circumstances and having to dip into it? Is that not what savings are for...you spend them when you need them. Quote Link to comment Share on other sites More sharing options...
threetimesdead Posted August 4, 2009 Share Posted August 4, 2009 (edited) Maybe they're daytraders........... I take you point. Maybe they have two decent incomes did not hang a mortgage/car HP/CC debt around their neck (as most idiots in this country do) and have a very low rental by making a good choice about the parts of the country to avoid living in You get what you deserve Edited August 4, 2009 by threetimesdead Quote Link to comment Share on other sites More sharing options...
DownsizingDiva Posted August 4, 2009 Share Posted August 4, 2009 I've saved a fortune by NOT buying a house in the last 18 months... Quote Link to comment Share on other sites More sharing options...
geoffk Posted August 4, 2009 Share Posted August 4, 2009 I've saved a fortune by NOT buying a house in the last 18 months... i don't believe you!!! Quote Link to comment Share on other sites More sharing options...
The Contractor Posted August 4, 2009 Share Posted August 4, 2009 that only works if a) interest rates are high(er than today) you earn the cash in the first place - compounding sod all just leaves you with a bit more than sod all.Most of the 'unidentifiable' millionaires I know made it through their own hard work in their own business (and not paying the taxman his cut). Very few did it working as an employee in the traditional sense. To save £5K a month, you must still be on at least £140K a year (in London), even if you are flatsharing, unless you really are some form of hermit. There ain't that many people on here pulling that sort of screw..... (though there are of course some) and most of them are not saving £5K a month either.... I agree, not many employees making that kind of salary but I would say there is a higher proportion of business owners on this site, when you run your own show it is easily possible to save 5k+ per month and pay the tax. Not sure this site has that many jackanory types on here.. TC Quote Link to comment Share on other sites More sharing options...
DownsizingDiva Posted August 4, 2009 Share Posted August 4, 2009 i don't believe you!!! Why? Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted August 4, 2009 Share Posted August 4, 2009 15 save more than £5000. a month there are some bullsh@ters on this site. There are quite a few City types on this site. You are expected to have made all of the money that you will need for the rest of your life by the time that you are 45 if you work in the City. Most people in the City realise that and save at least 75% of their after tax bonuses which should exceed 5k a month. Quote Link to comment Share on other sites More sharing options...
XswampyX Posted August 4, 2009 Share Posted August 4, 2009 http://www.creditaction.org.uk/august-2009.html Britain's interest repayments on personal debt were £66.3bn in the last 12months. The average interest paid by each household on their total debt is approximately £2,650 each year. This spring, the monthly amount saved per head across the population is higher than ever before recorded by the NS&I’s Quarterly Savings Survey, up from £82.87 in spring 2008 and £90.12 in winter 2008/09 to £92.41 this spring 2009. On average, the population is saving 6.83% of their income each month during spring, up from 6.35% in spring 2008 and 6.48% in winter 2008/09. The percentage of people saving money regularly every month has remained constant for the fifth quarter in a row at 47%. Those regular savers are, on average, setting aside the highest ever monthly amounts – £209.23 a month. I don't know who visits this site ....... either liars or 'the richest people in the world!'. Can we have a poll on the size of your cocks? Quote Link to comment Share on other sites More sharing options...
porca misèria Posted August 5, 2009 Share Posted August 5, 2009 This spring, the monthly amount saved per head across the population is higher than ever before recorded by the NS&I’s Quarterly Savings Survey, up from £82.87 in spring 2008 and £90.12 in winter 2008/09 to £92.41 this spring 2009. On average, the population is saving 6.83% of their income each month during spring, up from 6.35% in spring 2008 and 6.48% in winter 2008/09. The percentage of people saving money regularly every month has remained constant for the fifth quarter in a row at 47%. Those regular savers are, on average, setting aside the highest ever monthly amounts – £209.23 a month. Trouble with surveys like this: different people interpret the question differently. Example 1: a bog-standard ISA is £7200 a year, which makes £600/month if you count it monthly. Example 2: a 6% pension contribution on a £25k salary is £125/month Do your figures count these common forms of savings? Do they count investments in the stockmarket? Investing in a house? Some might, others might not. But if you included stockmarket investments (as I suspect many did in this survey), where do you draw the line? Investment in starting your own business? Investment in your own future by getting educated? It would be stretching a point (to say the least) to describe those as savings. So where do you draw the line? Without it, you're arguing at cross-purposes. Another point of ambiguity. Suppose you pay £4k/month into a pension. Your provider claims £1k in tax rebate, so £5k goes into the pension. You claim £1k rebate, so net of tax your contribution was £3k. Which of the three figures do you claim for the survey? Etc. BTW, I'm not one of those who answered over £5k/month. But I can well understand how some people may have done. Quote Link to comment Share on other sites More sharing options...
desertorchid Posted August 5, 2009 Share Posted August 5, 2009 (edited) A significant number of visitors to this site are expats and either earn in in a low tax economy and/or earn a USD/USD pegged currency which, due to recent weakness in the pound has led to high perceived income/savings in sterling. This can cause big swings in savings rates. Edited August 5, 2009 by desertorchid Quote Link to comment Share on other sites More sharing options...
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