how much percentage of your post tax biweekly income do you save monthly
| Poll:how much percentage of your post tax biweekly income do you save monthly | |||
| Choice | Stats | ||
| 0-10% | 36% (10) |    |
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| 10-20% | 4% (1) | |
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| 20-30% | 29% (8) | |
|
| 30-40% | 25% (7) | |
|
| 40-50% | 4% (1) | |
|
| >50% | 4% (1) | |
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| Poll:how much percentage of your post tax biweekly income do you save monthly | |||
| Choice | Stats | ||
| 0-10% | 36% (10) | |
|
| 10-20% | 4% (1) | |
|
| 20-30% | 29% (8) | |
|
| 30-40% | 25% (7) | |
|
| 40-50% | 4% (1) | |
|
| >50% | 4% (1) | |
|
Posts: 5775
Location: God's own country
Posted on: 22-07-08 09:51:06
Location: God's own country
Posted on: 22-07-08 09:51:06
Quote:
Originally posted by HelloG
System here is good enough that even if you save little, you need not worry much about 'Rainy days'!
Chittesh,
I agree with HelloG.
In India, if you lose a job, you are on your own. You need to have savings / revenue from parents / sons to keep you going.
In Canada, You donot need to care. If you lose your job, you get EI. If you resign the job on your own you have welfare to lean upon. This will help you until you are back on your track.
The concept of savings actually does not mean much in Canada. When you retire, all of you are covered by the CPP. for those who have very low or less CPP, you have the OAS to suppliment the income. Healthcare is free. You can apply and qualify for free/ subsidised long term care at your old age. India does not have this at all.
However, the savings rate is more in India / Gulf. In India, you could save 50-80% of your salary easily and in the gulf 80-95% of your salary and this can assist you in the future (will be helped a lot if you make real estate investments right from an early age). We donot have that luxury in Canada. You are forced to live a lifestyle which will get you to have 10-20% savings only (at the max. Does not include IT professionals).
Hope this helps
Peace
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I am a Gents and not a Ladies.
Quote:
Originally posted by HelloG
I would take a calculated risk before i buy a house or car . I would never go for a house which i cannot afford ( that is pay mortgage for few months when i am between jobs) . As far as other commodities like car etc I am in favour of paying upfront to avoid any hassels later.
My home payment is exactly 24% of our take home income post tax, and my savings is around 25% of take home income after tax. Basically my savings will pay the mortgage and EI will pay living expenses.Since i put all my savings in my home and i moved to the new home in the last 4 months i can only continue to live in my present house max 4-5 months and my savings will be gone.
In case i lose my job, I dont want to get a 10$/hr job just to pay bills. It may well take me 6 months to get a job with equal pay. (my boss was laid off in his previous job and it took him 8 months to find his present job (where he is my boss) He makes more than 50$/hr, jobs like these take time to find)
So however good the system is, you still need to save and save a lot for the rainy day.
Then what about your Children, i think you have to save to send them to university (dont want them to start with debt when they start their lives). What about their marriages, i feel its our moral right to make some contribution to them...
CPP and OAS will not even bring you close to your regular income when you retire if the family makes anywhere >=100K yr. Healthcare is free but what about dental and items that it dosent cover... when you are old you need everything
So you need to save and the 25% number is the minimum i would say..
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Live and Let Live
Are you sure that is the saving percentage for India and Gulf !!!!!! I have had good paying jobs in India and gulf .... but then saving 50 - 95% ... dont know that
Quote:
Originally posted by tamilkuravan
Quote:
However, the savings rate is more in India / Gulf. In India, you could save 50-80% of your salary easily and in the gulf 80-95% of your salary
Quote:
or have no car. do you really need a car ... and pay the insurance and the registration and the petrol and don't forget the mainteannce repairs.
I live in Guelph and work in Cambridge, there is no public transit between these cities. sometimes cars are Required.
Yes money is tight you may sell your new car and buy a POS car that takes you from point a to point b.
When i go grocery i can take transit but it is very inconvinient to carry stuff in carts, specially in winter, why wait for bus in -40 when for 6K you can get some basic transportation.
What about emergency, you cannot call 911 for all medical issues but you may still have to get to the hospital quickly, a car is indeed very handy, what about that impulse trip to Niagara or Wasaga beach..
I know there are cabs but the flexibility you get from your car is the best.
i can list you so many reasons why a used car is a money well spent...
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Live and Let Live
Posts: 602
Location: Amidst a glow in the sky.
Posted on: 22-07-08 12:47:05
Location: Amidst a glow in the sky.
Posted on: 22-07-08 12:47:05
Quote:
Originally posted by tamilkuravan
......... and in the gulf 80-95% of your salary .......
Long gone are those days! What are you talking about? Have you ever worked in the gulf states?
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None of us knows God until someone introduces us - Life of Pi
Quote:
Originally posted by chittesh
My home payment is exactly 24% of our take home income post tax, and my savings is around 25% of take home income after tax. Basically my savings will pay the mortgage and EI will pay living expenses.Since i put all my savings in my home and i moved to the new home in the last 4 months i can only continue to live in my present house max 4-5 months and my savings will be gone.
In case i lose my job, I dont want to get a 10$/hr job just to pay bills. It may well take me 6 months to get a job with equal pay. (my boss was laid off in his previous job and it took him 8 months to find his present job (where he is my boss) He makes more than 50$/hr, jobs like these take time to find)
So however good the system is, you still need to save and save a lot for the rainy day.
Then what about your Children, i think you have to save to send them to university (dont want them to start with debt when they start their lives). What about their marriages, i feel its our moral right to make some contribution to them...
CPP and OAS will not even bring you close to your regular income when you retire if the family makes anywhere >=100K yr. Healthcare is free but what about dental and items that it dosent cover... when you are old you need everything
So you need to save and the 25% number is the minimum i would say..
Agree with you to some extent that savings will go for paying downpayment for new house and then to support one's mortgage when between jobs but then as you mentioned that it may take 7-8 months to get a job , heres my take on this
*its mostly both partners working and so there is at least one steady income to pull through the tough time.
*EI will be there as a temporary support.
*if kids are small then there are CCTB etc to help support your kids and some of which may be contributed towards RESP for kids education.
*well for marriage of your kids...i guess one may find a job in 8-9 months to start saving again!
Saving 20-25% is good!
Posts: 5775
Location: God's own country
Posted on: 22-07-08 14:58:08
Location: God's own country
Posted on: 22-07-08 14:58:08
Quote:
However, the savings rate is more in India / Gulf. In India, you could save 50-80% of your salary easily and in the gulf 80-95% of your salary and this can assist you in the future (will be helped a lot if you make real estate
Peace
Puttoo and G13,
I stand by my statement.
I was living in Saudi, once upon a time and I was able to save 5% of my salary (5 % on food, free housing and transport). I used to see people save 98% of their salaries there. They used to get free food/ accomodation/transport etc.... Even as families, their wife/child stays at home without spending on anything except food. Hwever with teh free car given to their husbands, they roam the town during free times. However, all this is for professionals only.
In Dubai / UAE things may be different but I have seen my classmates save around 50% of their salaries (25K Dirham Salary-Taxfree. 5K on accomodation and 5K for other expenses). In the Gulf, you need not worry about what others think of you. You live your own lifestyle and save money by sending it to India. Cities like Bahrain, Oman, Kuwait and Qatar offer considerable savings as most of professionals working in these cities get free accomodation. They pay only for food and transport.
In India also the situation is changing. When people cook their own food and stay in a modest place, many save 50% of their gross income with 35% or so going to taxes. Just to give an example, my classmate in Hyderabad is getting Rs. 2 lakhs a month as an Architect. He pays just Rs.9000 for a 3 bed apartment. Food expenses will not be more than Rs. 5000 a month if you cook at home. He has a Car but uses it seldomly.
Hope this helps.
Peace
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I am a Gents and not a Ladies.
