How much monthly savings is adequate?

[John Shaw_IHB]

Please allow me to pick your brain. The idea of purchasing a home makes me nervous!

I am trying to see what I can afford... I am thinking net MO salary (including 401K cont.) - MO mortgage payment - MO prop tax accrual - MO expenses (including misc. accruals) = $500 or $700 Savings ..........is a safe plan.

What is the minimumum amount of monthly savings you would be comfortable with (Net ALL expenses)? Mine is $500!

Thanks.... this blog is fantastic!!!

 

[IrvineRenter_IHB]

I put away 10% of my net income into savings each month (in addition to the 10% of my gross going to a 401K). About 1/2 of that ends up getting consumed at some point as I don't use credit cards. So I would say 5% is long-term savings, and 5% is consumer good savings - but that is just me.

 

[awgee_IHB]

The second 10% net