Save 30k A Year (2013, living, safe)

[LocalGuy61]

Originally Posted by Mishra100

That's why freedom in awesome. I really enjoy saving and know that compound interest will make me rich and be able to enjoy a retirement beyond my dreams.

That may not be your thing so you can spend it how you feel. I love that dynamic.

And just in case you care, I definitely feel good about being a fully independent person and not requiring anyone else to save how I need to save. And if I do pass, then my family will be able to fully enjoy the choices I made in life. That makes me feel great.

If you're putting $30,000 into cash, compound interest on that is not going to make you rich. It won't keep up with inflation. That's why I asked at what point you plan to divert the money that you're now putting into cash savings over to other types of investments that could make you rich if you keep up with it.

[Mishra100]

Originally Posted by LocalGuy61

If you're putting $30,000 into cash, compound interest on that is not going to make you rich. It won't keep up with inflation. That's why I asked at what point you plan to divert the money that you're now putting into cash savings over to other types of investments that could make you rich if you keep up with it.

I responded to you in my post spam.

[LocalGuy61]

Originally Posted by Mishra100

I responded to you in my post spam.

I have no idea what post spam is.

[Mishra100]

Originally Posted by LocalGuy61

I have no idea what post spam is.

Here was my response; it's on page 4.

Quote:
Originally Posted by LocalGuy61
What is your goal, other than saving $30,000 per year? If you get a year's worth of living expenses saved, or even two years, as your emergency cash reserves, it's probably time to stop putting your savings into cash. You need to redirect it at that point to a more diversified collection of investments (stocks, bonds, natural resources, real estate, precious metals, etc.). Do you have a grand total in mind that you want to put into cash, or do you plan to save $30,000 per year until you retire?

Yes, I have my emergency fund sitting in a 2.5% interest checking account.

Retirement funds sit in a mutual fund.

All other liquid savings sit in stocks, 1 earning dividends (want more).

I own a tiny amount of gold.

Real estate is the rest. (my current home)

[RamblingMan]

Originally Posted by Mishra100

That's why freedom in awesome. I really enjoy saving and know that compound interest will make me rich and be able to enjoy a retirement beyond my dreams.

That may not be your thing so you can spend it how you feel. I love that dynamic.

And just in case you care, I definitely feel good about being a fully independent person and not requiring anyone else to save how I need to save. And if I do pass, then my family will be able to fully enjoy the choices I made in life. That makes me feel great.

Mishra100,

That's a great (and respectful) answer and I agree with you 100%.
Everybody has the right to make his or her own decisions, but IMHO you're on the right path. I love cars, motorcycles, boats, and other toys, but as I have grown older I have found that I love financial freedom even more.

I don't know if you'll be able to save 30k a year in the DC area, but I strongly suspect that you'll find a way to save a substantial amount and that you will be financially successful. If you haven't already read "The Millionaire Next Door" by Thomas Stanley and William Danko, you might want to do so. The phrase that would be relevant for you is "prodigious accumulator of wealth."

[LocalGuy61]

Originally Posted by RamblingMan

Mishra100,

That's a great (and respectful) answer and I agree with you 100%.
Everybody has the right to make his or her own decisions, but IMHO you're on the right path. I love cars, motorcycles, boats, and other toys, but as I have grown older I have found that I love financial freedom even more.

I don't know if you'll be able to save 30k a year in the DC area, but I strongly suspect that you'll find a way to save a substantial amount and that you will be financially successful. If you haven't already read "The Millionaire Next Door" by Thomas Stanley and William Danko, you might want to do so. The phrase that would be relevant for you is "prodigious accumulator of wealth."

Good recommendation. "The Millionaire Next Door" is a great book. I would also recommend almost any of Ric Edelman's books, but in particular the most recent edition of "The Truth About Money," to learn about the importance of proper diversification. A disproportionate amount in cash can actually increase the overall risk that your portfolio will underperform because of the eroding effect of inflation on cash savings.

[oneasterisk]

Originally Posted by halfabuck

Well sorry to say I do not like cheap people because invariably they end up scrounging off of others to satisfy their own needs. Hey, I'll be your friend but let's eat at your house and use your services so I can save mine. And if you are not that cheap what happens if your life changes and you don't make it past the next year? Who gets your money and your house? I feel bad for you because it sounds like your life is passing you by the wrong way.

Wow way to judge others lifestyle choices!

I choose to live a similar lifestyle as the OP. I'm not cheap but merely frugal with my funds. I manage to put in 16.5k a year in a retirement account as well as save 12-15k a year in liquid accounts. I have two autos, and two motorcycles which are all paid for. I go on vacations annually. I have no credit card or school loan debt. I own two homes, one being a rental property that cash flows monthly. I'm 31 and by 45 I'll have my primary house paid off and the rental nearly paid off. Financial freedom is empowering. While being a slave to debt is life passing you the wrong way IMO.

[interplex]

Good for your OP. Financial independence is great, regardless of where you want to go from there. Using "avoiding cheapness" as an excuse for being a spendthrift is sort of laughable. Anyone sane should be saving at least a little. There is also a big difference between marginal and actual taxes, which I do not think anyone has picked up on in the thread.

Personally, I can get by on $12k/year in living expenses, living independently, and not cheaping out if someone wants to go out once in a while for a meal or a drink. But, I am a single guy without baggage, who lives with roommates (like I did through my seven years of undergrad and professional school, things don't suddenly change that much because you aren't working AND going to school anymore). I save about $60k a year on a $100k income.

Most people don't want to go that far, but, just pointing out that lifestyle choices can make a huge difference in how much you can save.

[statecollege]

You're my kind of guy, except I try to eat more healthy than you, like a dinner out occasionally, and like a little more entertainment now and then. You'll be happy approaching retirement that you have this life style. Too many are attracted to living too close to or above their means and end up with too little at retirement.

[Mike10]

I know some people that try to hard to safe for retirement but aren't "living" in the present. You only live life once. Its great to find a happy medium between the two.