Author Topic: Finally calculated savings rate - surprised by results  (Read 5112 times)

ender

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Finally calculated savings rate - surprised by results
« on: April 05, 2014, 09:06:13 AM »
So for the first time, I calculated my current savings rate, basically by dividing "total savings" by "take home pay plus HSA/401k" and got almost 60%.

.... this makes me smile since it:

1) doesn't include company match
2) doesn't include overtime (will be entirely stashed)
3) doesn't include any bonus (will be entirely stashed)
4) doesn't include any tax refund (will be entirely stashed)
5) includes car expenses/replacement as expense (I budget 30 cents a mile to a car fund)
6) includes tithing

If I put modest estimates for a tax refund, overtime, and bonus compared to 2013 I get that percentage to be a bit higher than 70% (!). Including 401k match puts me above 80% (!).

I don't think this is sustainable indefinitely and I'm not really sure I should count an HSA as savings since I likely will use it periodically, but damn if these weren't some fun calculations this morning :)

Though considering I'm hopeful for a 10% raise/promotion in the next year... maybe it is more sustainable than I think.

Gin1984

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Re: Finally calculated savings rate - surprised by results
« Reply #1 on: April 05, 2014, 11:10:10 AM »
That is quite impressive!  One question, why do you expect to get a refund?

ender

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Re: Finally calculated savings rate - surprised by results
« Reply #2 on: April 05, 2014, 12:10:51 PM »
That is quite impressive!  One question, why do you expect to get a refund?

Basically I have inconsistent deductions every year and probably too high of withholding. Perhaps I should adjust my withholding... I'll always have cash available to pay any extra I would owe. This last year I had a refund of a bit over $2k, so it's a meaningful amount but not way too much.

kkbmustang

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Re: Finally calculated savings rate - surprised by results
« Reply #3 on: April 05, 2014, 04:30:43 PM »
Congrats! That's awesome!

HairyUpperLip

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Re: Finally calculated savings rate - surprised by results
« Reply #4 on: April 05, 2014, 06:43:10 PM »
nice work

CarDude

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Re: Finally calculated savings rate - surprised by results
« Reply #5 on: April 05, 2014, 07:48:50 PM »
Very nice work : D

happy

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Re: Finally calculated savings rate - surprised by results
« Reply #6 on: April 05, 2014, 09:47:23 PM »
Awesome

KBecks

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Re: Finally calculated savings rate - surprised by results
« Reply #7 on: April 06, 2014, 06:36:06 AM »
that's bad@ss!  Way to go!

ender

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Re: Finally calculated savings rate - surprised by results
« Reply #8 on: April 07, 2014, 07:19:42 AM »
Thanks, I've tried not to think about "when could I FIRE" so much because well, the next five years of my life might change that significantly.

But it's nice to know that percentage is so high. Which explains the trend in my net worth over the past few years :)

Exflyboy

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Re: Finally calculated savings rate - surprised by results
« Reply #9 on: April 07, 2014, 01:34:36 PM »
Awesome,

I never did calculate my savings rate but it must have been similar.

Frank

DjinnTonic

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Re: Finally calculated savings rate - surprised by results
« Reply #10 on: April 07, 2014, 02:44:40 PM »
Awesome!  Great work!  :-D.  I'm at about 61% right now, and I anticipate upping it to 70% in two years (when my alimony payments and mortgage interest are complete).  I feel the same about - I don't want to get too excited just yet because I could lose my job due to cuts in the future.  Gotta keep going until I can slam on the FI button.

-DjinnTonic

ender

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Re: Finally calculated savings rate - surprised by results
« Reply #11 on: April 07, 2014, 04:38:55 PM »
Awesome!  Great work!  :-D.  I'm at about 61% right now, and I anticipate upping it to 70% in two years (when my alimony payments and mortgage interest are complete).  I feel the same about - I don't want to get too excited just yet because I could lose my job due to cuts in the future.  Gotta keep going until I can slam on the FI button.

-DjinnTonic

Yeah it's crazy. I am trying to not really get super excited about things and plan out the next 20 years of my life, because realistically tons can change. But... if I keep pushing towards savings then I think I will be in good shape :)

Abe

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Re: Finally calculated savings rate - surprised by results
« Reply #12 on: April 07, 2014, 10:25:06 PM »
A lot can change, but you can work to keep a lot the same. Your savings habit goes a long way!

Thegoblinchief

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Re: Finally calculated savings rate - surprised by results
« Reply #13 on: April 08, 2014, 03:45:35 PM »
Nice. My income is all over the map, so I am going to calculate my savings rate for the next few years as the (delta of net worth/gross income). Not enough data yet. Somewhere  around 50% even with all of our crazy debt service.