Savings for a 30yr old

confusedeire

I'm just wondering what amount of savings would a 30yr old couple with a mortgage and average paying jobs but no kids expect to have.

jimmii

The average savings per adult is apparently only around 1 months wages so at that age with no kids then maybe 50% more than that would be pretty standard.

confusedeire

jimmii wrote: »

The average savings per adult is apparently only around 1 months wages so at that age with no kids then maybe 50% more than that would be pretty standard.

That seams increadably low. That would bearly cover any unforseen expense

Merowig

Though 6 months of your monthly budget is recommended.

jimmii

confusedeire wrote: »

That seams increadably low. That would bearly cover any unforseen expense

Yep its very low and easy to see why people get into financial issues so quickly after something unforeseen happens.

handlemaster

OP how much savings do you have might be a start

DellyBelly

I'm going to assume you both have been working for 8 years so I would think you should have saved about 3k a year times 8 = 24k multiplied by 2 so give our take approx 40k would be my estimate. Saving when in your 20s is a great idea and takes a lot of burden off as you get older.

confusedeire

handlemaster wrote: »

OP how much savings do you have might be a start

I don't really want to say. But I was lucky I got forced redundancy about 5yrs ago and got a job straight away.

The reason I ask is I'm thinking of paying a lump sum off my mortgage but trying to decide how much savings I should keep.

Nody

confusedeire wrote: »

The reason I ask is I'm thinking of paying a lump sum off my mortgage but trying to decide how much savings I should keep.

I'd look at keeping 6 months net salary for the two of you as a starting point; that gives you plenty of flexibility for the future as well.

handlemaster

confusedeire wrote: »

I don't really want to say. But I was lucky I got forced redundancy about 5yrs ago and got a job straight away.

The reason I ask is I'm thinking of paying a lump sum off my mortgage but trying to decide how much savings I should keep.

thats no fun at all .

dennyk

Six months of expenses is usually a good rule of thumb for an emergency fund. That should ideally be in a fairly liquid account, so not in a long-notice savings account, nor in a taxable investment fund where selling shares would have tax impact.

Beyond that, you may also want to consider the interest rate you're paying on your mortgage; if it's quite low, it could be better in the long run for you to put the money into a low-cost index-based mutual fund instead, especially if you can do it via a tax-advantaged account like a PRSA or an employer-provided pension.

If you're talking about a decent sum of money, it might be worth consulting with a financial planner. Just make sure you select one who works on a fee basis, not on commission, as the latter will most likely just push you to invest in whatever overpriced managed funds are giving him a cut. Someone else here might be able to advise the best way to find a reputable financial planner over here; I'm afraid I don't really know the ins and outs myself.

confusedeire

dennyk wrote: »

Six months of expenses is usually a good rule of thumb for an emergency fund. That should ideally be in a fairly liquid account, so not in a long-notice savings account, nor in a taxable investment fund where selling shares would have tax impact.

Beyond that, you may also want to consider the interest rate you're paying on your mortgage; if it's quite low, it could be better in the long run for you to put the money into a low-cost index-based mutual fund instead, especially if you can do it via a tax-advantaged account like a PRSA or an employer-provided pension.

If you're talking about a decent sum of money, it might be worth consulting with a financial planner. Just make sure you select one who works on a fee basis, not on commission, as the latter will most likely just push you to invest in whatever overpriced managed funds are giving him a cut. Someone else here might be able to advise the best way to find a reputable financial planner over here; I'm afraid I don't really know the ins and outs myself.

I have a pension through work. And at the moment the money is in a number of fixed term accounts and they mature at separate times throughout the year. The interest rate are gone so bad it's not worth fixing it in for much of a term. My mortgage rate is 4.6%

I also have over paid into my mortgage since the beginning to help incase there was a rate increase and it wouldn't be such a burden.

I regularly save every month so I think the best bet is to take a lump off the mortgage and continue to pay the same amount off every month. If I do I could knock nearly 15years off a 40yr mortgage

Geuze

confusedeire wrote: »

I'm just wondering what amount of savings would a 30yr old couple with a mortgage and average paying jobs but no kids expect to have.

I have a mortgage, a SAHM and two children.

From one wage [less than twice average earnings], I save 500-600 pm.

I have maybe 70k in savings.

handlemaster

Geuze wrote: »

I have a mortgage, a SAHM and two children.

From one wage [less than twice average earnings], I save 500-600 pm.

I have maybe 70k in savings.

Dépends on your age. .. Where you live. Are you a home owner etc. Different for everyone