How Much Do You Save?

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calqueuelater
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How Much Do You Save?

Post by calqueuelater » Sat Feb 04, 2012 8:39 am

What percent of your gross (pre-tax) income do you save each year?

I am hoping/planning to save 30%.

Others?

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PaddyMac
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Re: How Much Do You Save?

Post by PaddyMac » Sat Feb 04, 2012 10:06 am

Due to an aberration this past year or two, it's around 50%. But only because business is good (thank you recession).

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Jay69
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Re: How Much Do You Save?

Post by Jay69 » Sat Feb 04, 2012 10:21 am

If it all is good this year, 30%.

Will have to give credit where credit is due, we doubled our rate after we became active here, I thank you all.
"Out of clutter, find simplicity” Albert Einstein

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kingsnake
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Re: How Much Do You Save?

Post by kingsnake » Sat Feb 04, 2012 10:34 am

Looks to be about 45% plus or minus.

gofigure
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Re: How Much Do You Save?

Post by gofigure » Sat Feb 04, 2012 10:50 am

last year about 30%...that doesn't include our employer 401k match

dpusa
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Re: How Much Do You Save?

Post by dpusa » Sat Feb 04, 2012 10:57 am

32% but that includes 401k, iras and mortgage overpayment as it was going into our stock portfolio until this year.

letsgobobby
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Re: How Much Do You Save?

Post by letsgobobby » Sat Feb 04, 2012 11:03 am

I just made this calculation while doing my taxes, and last year was really weird. If numerator = 403b and IRA contributions, taxable savings dedicated to a home down payment, 401a matches, and 529 savings, and denominator = gross income + 401a matches, we ended up saving about 57%. I think it got that high because my income was unusually high and we made no charitable donations last year (we bunched them the year before). It's usually more like 40%.

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Aptenodytes
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Re: How Much Do You Save?

Post by Aptenodytes » Sat Feb 04, 2012 11:07 am

23% over here. I don't understand all the "buts" that people are inserting with respect to 401Ks etc. My 403b and our two IRAs are our chief savings vehicles. I wouldn't say I drive 6,000 miles a year but that includes driving in my car.

I don't include the employer match in my percentage because I don't consider that "savings" because it isn't money I have any choice over. It adds about 7 percentage points to the bottom line though.

billyt
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Re: How Much Do You Save?

Post by billyt » Sat Feb 04, 2012 11:07 am

Currently saving like mad. Less than 10 years to retirement and not enough money (yet). 65-70%.

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Littlefinger
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Re: How Much Do You Save?

Post by Littlefinger » Sat Feb 04, 2012 11:16 am

55% at last count.

investomajic
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Re: How Much Do You Save?

Post by investomajic » Sat Feb 04, 2012 11:17 am

I just looked up my numbers:
2010 it was 57%
2011 it was 61%

Married, no kids (yet) and living in a relatively low cost State.
Goal is to save as much as possible until kids come along, at which point those rates will plunge.

gkaplan
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Re: How Much Do You Save?

Post by gkaplan » Sat Feb 04, 2012 11:21 am

What do you mean by save? Depositing funds in a bank account, or investing funds in the market?
Gordon

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DaleMaley
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Re: How Much Do You Save?

Post by DaleMaley » Sat Feb 04, 2012 11:26 am

Here are previous 2011 poll results:

Image
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daytona084
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Re: How Much Do You Save?

Post by daytona084 » Sat Feb 04, 2012 11:27 am

My final year before retirement it was about 75%

Default User BR
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Re: How Much Do You Save?

Post by Default User BR » Sat Feb 04, 2012 11:29 am

I don't really know. I put 25% in the 401(k), which switches to after-tax when the deferral limit is hit, plus another 5500 catch-up, and 6000 in Roth. Other than that, whatever excess shows up in taxable accounts gets transferred over to the brokerage and invested whenever I feel motivated to do so.

I don't bother tracking it, because the information is of no use to me. I spend what I spend without regards to budgets or savings plans.


Brian

tibbitts
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Re: How Much Do You Save?

Post by tibbitts » Sat Feb 04, 2012 11:36 am

I don't save anything at all. I put some money in tax deferred savings, but take just as much out of exiting taxable savings. That won't be sustainable for the long term, but it seems to make sense for now. The deferred account pays 3.25% at the moment; the taxable account pays a lot less.

Paul

mwm158
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Re: How Much Do You Save?

Post by mwm158 » Sat Feb 04, 2012 11:42 am

deleted
Last edited by mwm158 on Thu Jan 08, 2015 2:59 pm, edited 1 time in total.

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Kenkat
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Re: How Much Do You Save?

Post by Kenkat » Sat Feb 04, 2012 11:44 am

10%. I got started early so I have a nice nest egg building and am currently in the expensive kid raising years so I have throttled back some.

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englishgirl
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Re: How Much Do You Save?

Post by englishgirl » Sat Feb 04, 2012 11:47 am

Save? Or invest?

I invest about 14%. I just bumped this up from 10%, so I'm feeling pretty good about that. I may be able to bump it up a bit more soon. Nowhere near the level of some on this board, but it is what it is.

I save about another 10%, but this includes savings for a new car, for property taxes, and a bunch of other things. People that escrow their property taxes and/or lease a car are going to be spending money on the same thing, but not necessarily calling it saving. So the 10% figure is a bit open to interpretation.
Sarah

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DiscoBunny1979
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Re: How Much Do You Save?

Post by DiscoBunny1979 » Sat Feb 04, 2012 11:52 am

Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.

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fishnskiguy
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Re: How Much Do You Save?

Post by fishnskiguy » Sat Feb 04, 2012 11:57 am

Even though we are fully retired on a military pension and social security, we still save 6% of gross pretax income. Why? It's relatively painless and we have always been savers. Too hard to stop.

I stuff a lot more than that in the bank savings account, but I fully expect to spend that on a new car someday, house painting, and other very infrequent big ticket items.

Chris
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staythecourse
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Re: How Much Do You Save?

Post by staythecourse » Sat Feb 04, 2012 12:44 pm

DiscoBunny1979 wrote:Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.
I agree 100%. This just shows that everyone's situation is different. People (even among Bogleheads) likley live VASTLY different lives and that includes wants and material desires. It is useless to compare yours to anyone elses. My suggestion for saving is max out his/her employee retirment plans and IRA's each years as a minimum. Then just save as much as your situation allows in a taxable account.

Knowing how much others are doing is not very useful for your situation.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

travellight
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Re: How Much Do You Save?

Post by travellight » Sat Feb 04, 2012 1:11 pm

67% roughly which included ira, 401k and mortgage payment beyond what is due.

If you ask those who save high percentages, I suspect while they may be of higher income, they are still leading fairly frugal lifestyles, especially for those incomes. I am living on an income of about 30K per year based on what is left for basic food, utilities, insurances (car/house/umbrella), gas, repairs, entertainment, private school for my kid, etc. I spend zero on haircuts, nail/salon care, only eat dinners out at budget places or happy hour.
364

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Majormajor78
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Re: How Much Do You Save?

Post by Majormajor78 » Sat Feb 04, 2012 1:30 pm

It's a little tight this year with a lot of medical expenses. Looks like we'll be able to hit my personal minimum of 16.3% of our income. If you include employeer matching that number increases to 23.4%.
"Oh, M. le Comte, it is only a loss of money which I have sustained... nothing worth mentioning, I assure you."

natureexplorer
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Re: How Much Do You Save?

Post by natureexplorer » Sat Feb 04, 2012 2:12 pm

PaddyMac wrote:Due to an aberration this past year or two, it's around 50%. But only because business is good (thank you recession).
The recession ended in the summer of 2009. Just saying.

chaz
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Re: How Much Do You Save?

Post by chaz » Sat Feb 04, 2012 2:41 pm

Nothing since retired.
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snyder66
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Re: How Much Do You Save?

Post by snyder66 » Sat Feb 04, 2012 2:59 pm

This percentage is on pretax income? I am guessing my record keeping is not as good as the rest of you...I will need to do some digging.

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LH
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Re: How Much Do You Save?

Post by LH » Sat Feb 04, 2012 3:20 pm

calqueuelater wrote:What percent of your gross (pre-tax) income do you save each year?

I am hoping/planning to save 30%.

Others?
30 percent this past year.

beckjl727
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Re: How Much Do You Save?

Post by beckjl727 » Sat Feb 04, 2012 3:31 pm

For me it's 21%

bmelikia
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Re: How Much Do You Save?

Post by bmelikia » Sat Feb 04, 2012 5:21 pm

DiscoBunny1979 wrote:Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.
Age: 27
Status: Single
Income: $ 60,000
Rent: $ 550 ( I live in a 450 sq ft studio apartment - I know for some people that would be too small but for me it is honestly more than I need. )

Annual Savings
Savings Goal #1 (Pay cash for a house fund): $825 x 26 = $ 21,450/yr

Savings Goal #2 (Roth IRA): $192 x 26 = $ 5,000/yr

Savings Goal #3 (401k): $161.53 x 26 = $ 4,200/yr

Total = $ 30,650/yr = 51.08 %**

**This number does not include the $ 5,500 match my employer contributed into my 401k so technically I guess the percentage "saved" could sort of be more. . .but since it was my employers doing I did not include that.

I am fortunate to be able to save at this rate due to the fact that my employer gives me a work truck that is also for use as my own personal vehicle. I have not bought a single gallon of gas in the last 2 years - I am definately fortunate. Also, lunch is provided daily at not cost. These added perks at work are what give me the opportunity to save at the rate I have been the last several years. . .

I work 12 days in a row ( I get every other weekend off) which is not necessarily the best schedule in the world but since I'm at work so much I don't have time to spend my money so that works out nicely in the savings department.
Last edited by bmelikia on Sat Feb 04, 2012 7:19 pm, edited 2 times in total.
"I would rather die with money, than live without it...." - Bogleheads member Ron | | "The greatest enemy of a good plan, is the dream of a perfect plan." | -Bogle

mcblum
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Re: How Much Do You Save?

Post by mcblum » Sat Feb 04, 2012 6:32 pm

About 37%. I have a Civil service pension and a full time job. so it is about 77% of my gross salary.
Marty

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Re: How Much Do You Save?

Post by Mudpuppy » Sat Feb 04, 2012 9:21 pm

I always feel a bit duplicitous about answering such polls because my income is so spiky. There just hasn't been an "average" savings rate in many years. The only constant has been my average expense level. Anything above that gets stuffed into my Roth IRA, 457 plan, I bonds and general savings.

rallycap
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Re: How Much Do You Save?

Post by rallycap » Sat Feb 04, 2012 9:57 pm

We are saving 15% consistently with the goal of getting to 20%. My income is inconsistent but that didn't stop us from reaching our goal of 15%. Funny how when you find this forum you are motivated to save more :)

thedude
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Re: How Much Do You Save?

Post by thedude » Sat Feb 04, 2012 10:21 pm

Approximately 50%. We live below our means and are saving to buy a house.

lexie2000
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Re: How Much Do You Save?

Post by lexie2000 » Sat Feb 04, 2012 10:58 pm

We saved a little bit over 34%. We are not 1%ers and we still have a mortgage.

stoptothink
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Re: How Much Do You Save?

Post by stoptothink » Sat Feb 04, 2012 11:27 pm

DiscoBunny1979 wrote:Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.
My gross income was about $49k. $16.5k in 403b, about $3k in TRS, $5K in Roth IRA. Even having paid about $14k in tuition, still saved right at about 50%. Including rent/utilities/insurance, I somehow lived off ~$10k for the entire year.

MWCA
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Re: How Much Do You Save?

Post by MWCA » Sun Feb 05, 2012 1:32 am

45% last year
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BHCadet
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Re: How Much Do You Save?

Post by BHCadet » Sun Feb 05, 2012 1:53 am

35% last year.
No mortgage.
But, a son in college...

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wlpotts
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Re: How Much Do You Save?

Post by wlpotts » Sun Feb 05, 2012 5:23 am

staythecourse wrote:
DiscoBunny1979 wrote:Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.
I agree 100%. This just shows that everyone's situation is different. People (even among Bogleheads) likley live VASTLY different lives and that includes wants and material desires. It is useless to compare yours to anyone elses. My suggestion for saving is max out his/her employee retirment plans and IRA's each years as a minimum. Then just save as much as your situation allows in a taxable account.

Knowing how much others are doing is not very useful for your situation.

Good luck.
Right on the money DiscoBunny1979 and staythecourse!

It is a useless exercise to compare your personal situation in life with those of other persons. Each of us as individuals has a unique life experience and an ultimate reality. While some posters may posit that they have achieved extraordinary saving rates, their realities in life may have special circumstances. (For example, they might be smarter than us, they might be paid more, they might get better benefits, their company might match their 401K contributions, they might get a pension and benefits, they might also get paid healthcare coverage or even get stock options.)

These people may feel comforable with their success and may be more inclined to post more freely.

There are alot of other people that do not have the above benefitting attributes going for them. Therefore, we have to find ways to fund these ourselves. Aditionally, some may have to pay for alimony, or for special needs childcare, or for college expenses. The list can go, but you get the gist.

I'm sure there may be many of us here who do not want to post here due to one's coming up short on 'comparism' issues.

For what it's worth, I save as much as can each year, but my circumstances and savings rate is dictated by my personal realities each year.

Respectfully,

WLPotts
Some have it. Some don't. Either way, here I am!

snyder66
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Re: How Much Do You Save?

Post by snyder66 » Sun Feb 05, 2012 7:22 am

As long as you save enough to have a retirement that is comfortable enough for your unique situation. That's all that really matters to me.

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Re: How Much Do You Save?

Post by HongKonger » Sun Feb 05, 2012 8:25 am

I have always saved half my age as a % of my salary since I started work aged 27. But for the last 5 years, I have saved 55-60% (equal to around 35k) per year.

Due to a change of jobs, this will now drop back to 30% of my new salary or around 15k per year. Suffice to say I will be looking for ways to pick up extra work this year - although the significant reduction in stress and opportunity to actually have a personal life are proving way more valuable than the loss of $$ right now :D

mptfan
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Re: How Much Do You Save?

Post by mptfan » Sun Feb 05, 2012 9:02 am

staythecourse wrote:
DiscoBunny1979 wrote:Another silly question in my opinion unless the posters would like to also state their actual gross income. It's one thing to save 50% of income if earning 1 million dollars a year, versus saving 50% of income if earning $30,000 a year. I think I'd be more interested in hearing from those that are saving 50% of income from the latter group and how they actually are achieving it. In addition, it would be helpful to know if those with extremely high savings rates have a mortgage, are renting, or are paying relatively nothing for where they hang their hat. Without other info, knowing someone's savings rate and the method behind it is kinda useless info.
I agree 100%. This just shows that everyone's situation is different. People (even among Bogleheads) likley live VASTLY different lives and that includes wants and material desires. It is useless to compare yours to anyone elses. My suggestion for saving is max out his/her employee retirment plans and IRA's each years as a minimum. Then just save as much as your situation allows in a taxable account.

Knowing how much others are doing is not very useful for your situation.
I think we all agree on some basic facts:

1. Everyone's situation is different.
2. The more you make, the easier it is to save.
3. Bogleheads, on average, save much more than the average American.

Ok, now that we have gotten that out of the way, I think it is useful to see a poll of how much Bogleheads save, and I don't think it is useless. I think the overall average provides useful information about the habits of the average Boglehead, just like the national savings rate gives useful information about the habits of the average American. The Commerce Department spends a lot of money each year calculating the national savings rate, and I don't think it is a waste of time.

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Re: How Much Do You Save?

Post by bmelikia » Sun Feb 05, 2012 9:53 am

HongKonger wrote: Due to a change of jobs, this will now drop back to 30% of my new salary or around 15k per year. Suffice to say I will be looking for ways to pick up extra work this year - although the significant reduction in stress and opportunity to actually have a personal life are proving way more valuable than the loss of $$ right now :D
Good point. . .

I figure I'm a rational guy, so I would be more than willing to accept 30% less pay in order to work 30% less. . .I'm 27 and think that maybe by age 32 - 35 or somewhere in there ( who really knows ) I would like to get a gig that does not require so much of my time. This will be especially true once I start having kids. . . .
"I would rather die with money, than live without it...." - Bogleheads member Ron | | "The greatest enemy of a good plan, is the dream of a perfect plan." | -Bogle

HongKonger
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Re: How Much Do You Save?

Post by HongKonger » Sun Feb 05, 2012 11:37 am

bmelikia wrote:
HongKonger wrote: Due to a change of jobs, this will now drop back to 30% of my new salary or around 15k per year. Suffice to say I will be looking for ways to pick up extra work this year - although the significant reduction in stress and opportunity to actually have a personal life are proving way more valuable than the loss of $$ right now :D
Good point. . .

I figure I'm a rational guy, so I would be more than willing to accept 30% less pay in order to work 30% less. . .I'm 27 and think that maybe by age 32 - 35 or somewhere in there ( who really knows ) I would like to get a gig that does not require so much of my time. This will be especially true once I start having kids. . . .
No kids or partner here ...too busy working for all of my 30s. :(

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Jay69
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Re: How Much Do You Save?

Post by Jay69 » Mon Feb 06, 2012 10:19 am

bmelikia wrote: I figure I'm a rational guy, so I would be more than willing to accept 30% less pay in order to work 30% less. . .I'm 27 and think that maybe by age 32 - 35 or somewhere in there ( who really knows ) I would like to get a gig that does not require so much of my time. This will be especially true once I start having kids. . . .

Dont forget kids = lots of dollars out the door!!

For most with kids we all wish for more time.

I just realized my oldest is signing up for drivers education, man where does the time go!

I was lucky and for the most part only had to work 40/wk while rasing our kids.

Back to the OP's topic of savings rate, while many variables will effect the rate, tossing a handful of kids in the mix has to be one of the biggest variables second to income.
"Out of clutter, find simplicity” Albert Einstein

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Re: How Much Do You Save?

Post by Noobvestor » Mon Feb 06, 2012 11:14 am

Jay69 wrote: Back to the OP's topic of savings rate, while many variables will effect the rate, tossing a handful of kids in the mix has to be one of the biggest variables second to income.
And running a business or two (or more) with variable income streams and/or major periodic sales. My rate jumps around like crazy - what stays more constant, by far, is my spending, which I try to keep from fluctuating to such extremes.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: How Much Do You Save?

Post by chipmonk » Mon Feb 06, 2012 11:41 am

Around 30%. I hope to get closer to 35% this year.

davebo
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Re: How Much Do You Save?

Post by davebo » Mon Feb 06, 2012 11:50 am

In 2010, I probably saved about 75% of my total income. That was back when we had 1 child, 2 adults working, and I had a business that produced substantial income.

In 2011-2012, my wife stayed home because we had twins. So while I still have the equivalent of 2 nice full-time incomes, I probably save about 25%. Next year, my wife is planning on returning to work so we'll be back up in that previous range.

Having kids definitely increases the expenses quite a bit. I feel fortunate to be in the position we're in, but I can see how it can be the difference between saving a decent chunk and just making ends meet.

And I'm lucky too that my job is close and I only work around 37-40 hours per week. Not sure how people do it when they are doing 50+ hours per week with kids.

tim1999
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Re: How Much Do You Save?

Post by tim1999 » Mon Feb 06, 2012 12:15 pm

Around 30% annually here, excluding money my employer contributes to my 401k.

My savings rate may get a couple percent higher in 2012, depending on how a bonus plays out.

Single guy, no kids, AGI is low enough to contribute to a Roth IRA.

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Re: How Much Do You Save?

Post by KyleAAA » Mon Feb 06, 2012 12:31 pm

I have no idea. I don't keep track. But probably around 40% if I had to guess.

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