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Between 401k, Roth IRA, and after-tax investments & savings we save about 50% of our income (28 and 26 here). Saving more than that would cut into the spending on things we enjoy doing in life. I am satisfied with the 50% as I feel that is a very healthy amount and above average. Could we save 70% or more? Probably, but I wouldn't trade the travel and house projects for having a little extra in the bank beyond the large amount we already save.
I believe if you work hard, you need to reward yourself periodically instead of saving every penny. If not, you'll find yourself with a huge nest egg but nothing to show for it during the years of working - no pleasures in life and maybe angry for it.
Hedonic adaptation anyone?
Spending more just to "live" won't make you any happier, it'll just make you poorer.
Spending more just to "live" won't make you any happier, it'll just make you poorer.
But never spending it is no fun either. Not EVERY fun thing in life is free. How much of one's income should they save? We already save over 50% of our GROSS income. Not very many people could say that. We could probably save 70% if we cut out all our "fun money" but what would that really gain us?
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