I was revisiting my saving policies in the light of some articles that advise savings of minimum 20% of your salary, and I thought worth asking how everyone else is doing. No survey was created in the previously asked questions like this one. Also, since it’s rather hard to trust any surveys when specific numbers are asked, I do hope talking/focussing on the % only this will render results more honest and accurate, thanks.
What Percent of Your Salary Do You Save?
User102430 on 26/10/2020 - 16:55
Last edited 26/10/2020 - 17:00
Last edited 26/10/2020 - 17:00
Poll Options
- 20I don't know / I don't budget
- 110% - none / I incur debt
- 211% - 20%
- 5421% - 40%
- 4641% - 60%
- 46above 61%
Comments
Apologies, revisited the numbers
How about for 61%? 😁
We'll talk once you get there :)
After I give the ATO 45% there's nothing left to save.
I realise this is a joke response, but nobody pays tax that high. As the highest marginal tax rate is 45% and only applies to income over $180k, by definition your overall tax rate must be lower.
Because even if he/she is on 180k or above, they would not pay 45% tax on the whole 180k+. They would only pay 45% tax on any dollar they earn over the 180k.The rest of their pay is taxed is at the marginal rate as MS Paint mentioned above
@cvas: haha thanks! I just realised I misunderstood when I breezed through the comment! My bad!
(Although, there are ways the tax office can still take more than 45%!)
@bobbified: Yeah the medicare levy, drought levy, bushfire levy, we don't want to call it a tax levy, and more. In a couple of years there will be the COVID levy.
@Doyen: Don't give them ideas. imagine if Scomo and Frydenberg are checking Ozbargain with their weekly Friday arvo beers??
@cvas: perhaps their payg income is so much higher than 180k that the amount below that tax bracket is negligible
Forgetting Medicare Levy?
Possible if they are a non resident
Or under 18 and it’s unearned income which could top out at 66%
Or maybe one hasn’t applied for a TFN
once you crest that 80k mark, it feels like 50%, even though it might only be 37%
It stings, is all :(
37% is only the marginal rate for income over $90k in the 19/20 FY, not the effective total rate.
If you earn $180k with no deductions you pay $54,097 tax, which is an overall tax rate of 30%. Anything less than $180k you pay even less.
Needs a minus option
My answer = Negative 3.5%
See second option - 0% - none / I incur debt, which should probably read "negative (debt/burning savings)" but cannot change it :(
I am the idiot who voted above 61%.
I really do save that much…unfortunately it gets burned and pillaged by my wife…..sigh.
probably worth reconsidering answer with plural "You"
..it gets burned and pillaged by my wife
Look on the bright side. It's little now compared to if you try to run away. The court-sanctioned percentage could be much higher! 😂
User name checks out.
Without a mortgage,wife and expensive hobbies easily 80% of my salary goes into savings each week, with a mortgage, wife and house to upkeep i'd probably be lucky to be saving 30%.
FWIW i don't buy into the currently inflated house prices and record low interest rates. It's effectively financial jail to be taking out a $1 million mortgage to buy something other than an apartment.
It's effectively financial jail to be taking out a $1 million mortgage to buy something other than an apartment.
I mean this depends on your salary right? And what about negative gearing if it's an investment property?
Then don't take out a million bucks and find a reasonably priced house you like that you can do work on?
It doesn't have to be an investment, you can also just enjoy owning your own home.
Save? Isn't this OzBargain? There's no saving once you get addicted to this site.
Pre-COVID 50%, during COVID-19 75% or more.
I'm saving more during covid than before covid
How about how much we invest? Especially with the savings rates at all time lows, it doesn't pay to save…especially these days.
I would count investing (and paying off a mortgage) as saving
under 5%..this post makes me realise something is wrong with me
The bank owns you and everything you mortgage
I think it really depends if you have a mortgage or not.
If you're saving 50% after mortgage repayments I am in awe.
OzB admins could compile a complete financial profile of many of us from all the data we're volunteering in the forums.
Next thread: what's your average tax rate.
Thread after next: what is your social security number
MuricaBargain
…and do what with that? ;) Banks in Australia have much better and deeper knowledge about your finances already…
We're not talking about banks here…but some random website.
Anyone saving >60% are either living with there parents or making BIG money
When paying a mortgage, a certain percentage (say 50%+) go to the principal and the rest goes to interest.
The part going to the principal or balance, is that classed as saving considering you can sell your house and get that money back?
This is similar to purchasing shares or putting money in super, it's saving to purchase assets than can be sold later to recover the initial investment.
Thanks
What are you looking for to extract from us?
It's a simple question complicated by your ramblings about revisiting your "policies".Who creates "policies" upon themselves?
What next, a "Charter"… an "Ethos"? A "Constitution"?
Who care what other people save. This is an intrusive question.
You could say that about any other question on ozbargain.
Nothing to extract, just pure curiosity, and no need to answer, it's not mandatory to respond to this survey
Note, banks know tons more about you than I've captured here, waaay more
Don't know the exact number, but I believe it's about half for "us". We recently decided that we earn enough to pay off our mortgage in less than 5 years if we're sensible. My partner's salary goes entirely to the mortgage (she earns about 80% of what I do), and we live off mine. But we tend to still save some of that as well.
I manage anywhere from 33% to 50% depending on how my bills for the month go, this month I got walloped by drivers licence renewal and rego (so I didn't quite make it to 50%).
I don’t really have a target.
My guidelines are:
make as much as I safely can (no excess risk taking), spend on what’s needed and wanted as required and as frugaly as possible. Invest the rest.I had a look. Typically 51% but has been 58% since COVID. Note that those figures include mortgage interest as an expense but not the principal repayment component, which effectively forms part of those % savings rates. Forced savings, in effect.
I have a very low outlay and very good budgeting skills so I manage to save about 40% of my pension every pay day
Which option to tick for 20%?