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Hi, as some of you know, I'm considering a move to a larger home in Virginia; initially starting with a large mortgage (800k) that'll be reduced to 200k after the sale of our current home, and recasting the mortgage.
Our saving rate will be around 53% (including $1580 in 401k savings a month and another ~3100 after mortgage & expenses).
You don't have to share the $$ figures if you dont want to, but what's your savings rate monthly after expenses (% of take-home pay. Ignore that 401k is pre-tax dollars)?
We save 7 percent to get my dollar for dollar 401k match and my wife saves her 6% to get her 6% dollar for dollar match. So 13% or 26% depending on how you want to look at it. The only other “saving” we do is putting all credit card rewards and bonus into a permanent emergency fund.
The rest goes to debt service (mortgage, student loans), ongoing payments, and traveling/fun.
Western Colorado. We save 72% of our take home pay or 51% of our gross. The percent of take home is skewed because of the pretax 401k contributions. Needless to say we save a lot, but live a very comfortable lifestyle because we have zero debt, own our home and spend our non essential dollars on things we value like travel and good wine.
Probably 10 to 20% of gross pay over the years. Higher rate as my income increased. Not counting Social Security deduction.
A high rate of savings now is good as you can let the dollars work for you and cut back on savings educational and other expense come up.
The hard part will be learning when you can spend a little extra money. I would make up a retirement budget, estimate high, and figure out how much you will need in assets to support your retirement income. Then see how much you have to save to reach this target say plus 10 or 20% since we just making guesses of the future, This will give you an idea as to how much you can divert from current savings. Remember the emergency fund, health care fund and educational fund.
We are hovering around 40% of gross. It was higher in the past in % terms in the 50-60% range but I received a substantial raise roughly a year ago so taxes certainly started taking a bigger bite. Overall even though our % dropped the actual dollars went up significantly too so I’m not worried about it
We save 7 percent to get my dollar for dollar 401k match and my wife saves her 6% to get her 6% dollar for dollar match. So 13% or 26% depending on how you want to look at it. The only other “saving” we do is putting all credit card rewards and bonus into a permanent emergency fund.
The rest goes to debt service (mortgage, student loans), ongoing payments, and traveling/fun.
How do you get 13% or 26?. Assuming you each make the same salary, you are saving 6.5% or 13% including company match.
We save close to 40% of my husband's gross income. (401k, bonus, RSU vesting, brokerage). Employer match and PSP adds another 10% of gross. Net rental income adds about another 5% of gross.
Agreed, you’re right. Not sure what I was spewing in those moments. Lazy, broken math without thinking about it. In general, I make about 2/3 of our income but it’s kind of skewed because insurance comes off of my income and her company pays her extra money for not using their insurance.
I don’t really care to save more than that. I’d rather do stuff when we’re young.
We’re at the cusp of me being promoted to make serious money. I still haven’t decided if Id rather start paying to buy back my time aka paying for house cleaning/yard work, or being serious about pouring more money into retirement. Or just making it pure fun money. Most likely, it will be a little of each.
Agreed, you’re right. Not sure what I was spewing in those moments. Lazy math without thinking about it. In general, I make about 2/3 of our income but it’s kind of skewed because insurance comes off of my income and her company pays her extra money for not using their insurance.
I don’t really care to save more than that. I’d rather do stuff when we’re young.
Life is about balance but that statement is typically an excuse for not being more financially responsible
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