Author Topic: Reached a 75% savings rate  (Read 2123 times)

justchristine

  • Bristles
  • ***
  • Posts: 353
Reached a 75% savings rate
« on: December 02, 2017, 12:41:12 PM »
Since I pay everything with a credit card, my 2017 year came to a close with the statement period ending today.  With all my spending accounted for, I'm looking at a 75% savings rate unless I've mistyped an expense somewhere.  I used to wonder how icould ever reach a 50% savings rate and now I'm at 75% with room for more if I got really motivated.  I just had to share since no one IRL would get my excitement over a spreadsheet number :)

Half Stached

  • 5 O'Clock Shadow
  • *
  • Posts: 76
  • Age: 47
  • Location: Seattle
Re: Reached a 75% savings rate
« Reply #1 on: December 02, 2017, 12:43:43 PM »
Cogratulations - that's awesome! We've been at 74% this year, but haven't quite cracked 75. Perhaps next year for us...

beee

  • Stubble
  • **
  • Posts: 142
  • Age: 30
  • Location: Edmonton, Canada
    • HoneyMoney.io
Re: Reached a 75% savings rate
« Reply #2 on: December 02, 2017, 01:01:09 PM »
Nice!
68% for us this year

ACyclist

  • Bristles
  • ***
  • Posts: 285
Re: Reached a 75% savings rate
« Reply #3 on: December 02, 2017, 01:06:04 PM »
73% for us last month.  I am sure this will go up and down.  I've been on a roll the last couple of months, and it can only get better. 

Nate79

  • 5 O'Clock Shadow
  • *
  • Posts: 81
Re: Reached a 75% savings rate
« Reply #4 on: December 02, 2017, 07:25:16 PM »
Wow, that's crazy high. Congrats. No way can we get that high considering federal, state, property, etc tax already takes a pretty high percentage.

Sent from my SAMSUNG-SM-G930A using Tapatalk


soccerluvof4

  • Magnum Stache
  • ******
  • Posts: 3380
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
Re: Reached a 75% savings rate
« Reply #5 on: December 03, 2017, 03:41:05 AM »
Thats insanely awesome ! I'm fired but was never able to get close to that. Would of came a whole lot of years earlier otherwise! Looking back I know with what I know now definatlley could of done 50%

happy

  • Magnum Stache
  • ******
  • Posts: 4069
  • Location: NSW Australia
Re: Reached a 75% savings rate
« Reply #6 on: December 03, 2017, 04:38:06 AM »
Well done, thats an achievement. As hard as I try, I only ever cracked 60%.

ixtap

  • Handlebar Stache
  • *****
  • Posts: 1228
Re: Reached a 75% savings rate
« Reply #7 on: December 03, 2017, 08:32:37 AM »
Wow, that's crazy high. Congrats. No way can we get that high considering federal, state, property, etc tax already takes a pretty high percentage.

Sent from my SAMSUNG-SM-G930A using Tapatalk

Ditto. Our federal + state income tax is more than our spending.

BikeFanatic

  • Stubble
  • **
  • Posts: 191
Re: Reached a 75% savings rate
« Reply #8 on: December 03, 2017, 09:45:30 AM »
Quote
Ditto. Our federal + state income tax is more than our spending.

I estimate around 70 % saved for myself, I deduct the income tax first and just  use my take home pay to calculate ( plus my 401K match and small 401K  bonus). Every year I say I will work just 5 more years, but I am rather conservative and feel I have to have a paid off house and 1.2-1.4 milliion saved for me and my spouse in order to retire as I am older but she is 7-8 years younger.

akzidenz

  • 5 O'Clock Shadow
  • *
  • Posts: 91
Re: Reached a 75% savings rate
« Reply #9 on: December 03, 2017, 10:16:31 AM »
That's amazing, congratulations.

I can do 50% but I'm still struggling to do 55%. I'd love to hit a 75% savings rate someday, and I'm always inspired by the posters on this forum to push myself a little more.

Lan Mandragoran

  • Stubble
  • **
  • Posts: 240
Re: Reached a 75% savings rate
« Reply #10 on: December 04, 2017, 08:24:42 PM »
75% is awesome :). One day we hope to get there, we rock 40-50 I think, but I'm not really sure because a rental makes it kind of confusing.

terran

  • Handlebar Stache
  • *****
  • Posts: 1493
Re: Reached a 75% savings rate
« Reply #11 on: December 04, 2017, 08:27:31 PM »
Wow, that's crazy high. Congrats. No way can we get that high considering federal, state, property, etc tax already takes a pretty high percentage.

Sent from my SAMSUNG-SM-G930A using Tapatalk

Ditto. Our federal + state income tax is more than our spending.

I'm guessing these numbers are based on net income (so not including taxes or health insurance, etc). Even someone at the top of the 15% bracket is paying an 18.4% effective rate between federal taxes and FICA leaving only 6.5% (~$6300/year) to cover state taxes, deductions like health insurance, and expenses to still end up at a 75% savings rate based on gross income.
« Last Edit: December 04, 2017, 08:38:11 PM by terran »

justchristine

  • Bristles
  • ***
  • Posts: 353
Re: Reached a 75% savings rate
« Reply #12 on: December 05, 2017, 06:16:05 AM »
Wow, that's crazy high. Congrats. No way can we get that high considering federal, state, property, etc tax already takes a pretty high percentage.

Sent from my SAMSUNG-SM-G930A using Tapatalk

Ditto. Our federal + state income tax is more than our spending.

I'm guessing these numbers are based on net income (so not including taxes or health insurance, etc). Even someone at the top of the 15% bracket is paying an 18.4% effective rate between federal taxes and FICA leaving only 6.5% (~$6300/year) to cover state taxes, deductions like health insurance, and expenses to still end up at a 75% savings rate based on gross income.

Yes, I should have clarified the calculation in my original post.  The savings rate in the OP was calculation like this:  "After Tax Savings" + "401k contr"/"Take Home Pay" + "401K contr"
If I calculate my savings rate on a gross income basis, I'm at ~61%

ACyclist

  • Bristles
  • ***
  • Posts: 285
Re: Reached a 75% savings rate
« Reply #13 on: December 05, 2017, 09:38:10 AM »
Now, I am definitely thinking that I did my calculation wrong.  I think that my spouse is making more money than I am calculating for.  More likely we are around 60%. 

My math sucks.  Which is why I am somewhat lost in discussion on some of the threads on MMM.  <blush>

We have been saving a ton since I joined, but it's going to level out at some point.   I'm still in the MMM honeymoon phase. 

Erica

  • Bristles
  • ***
  • Posts: 464
  • Married
Re: Reached a 75% savings rate
« Reply #14 on: December 06, 2017, 12:50:21 AM »
Good for you! You are an inspiration!!!!

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 980
  • Age: 42
Re: Reached a 75% savings rate
« Reply #15 on: December 06, 2017, 01:01:00 AM »
Yes, I should have clarified the calculation in my original post.  The savings rate in the OP was calculation like this:  "After Tax Savings" + "401k contr"/"Take Home Pay" + "401K contr"
If I calculate my savings rate on a gross income basis, I'm at ~61%

This is exactly how I calculate mine and your accomplishment is fantastic!

In 2016 I began to notice that I pay more in taxes than I spend... For some odd reason that felt really good?

clarkfan1979

  • Handlebar Stache
  • *****
  • Posts: 1750
  • Age: 39
  • Location: Kauai & Denver
Re: Reached a 75% savings rate
« Reply #16 on: December 08, 2017, 05:58:57 PM »
We are at 30%. It would be 35% if I made my minimum student loan payments. Because I pay extra it's 30%.

It used to be 40%, however that was on a lower salary in a lower cost of living area. I moved for a higher paying job. Even though our savings rate is currently lower. Our gross savings is higher.

terran

  • Handlebar Stache
  • *****
  • Posts: 1493
Re: Reached a 75% savings rate
« Reply #17 on: December 08, 2017, 09:19:01 PM »
We are at 30%. It would be 35% if I made my minimum student loan payments. Because I pay extra it's 30%.

I believe payments to principal on your student loans could arguably be considered savings as they increase your net worth.

Slee_stack

  • Pencil Stache
  • ****
  • Posts: 823
Re: Reached a 75% savings rate
« Reply #18 on: December 13, 2017, 02:21:53 PM »
I also use gross rates.  Since I use 401k pre-tax contributions, it just seems to make more sense than calculating post tax.

Still, 60% is great.  I've been there for awhile and still strive to bump it higher.  Unfortunately, I will likely have to find a way into a lower tax bracket to do so.