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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: onehair on June 22, 2015, 09:08:47 AM

Title: Am I Staching enough?
Post by: onehair on June 22, 2015, 09:08:47 AM

I am saving I know that.  I have cut my expenses.  I am earning bits from my sidejobs I see the points growing but it doesn't feel like I am doing enough for some reason.  I know I have a higher net worth than some of my peers but I worry.  My stocks are finally over the 4k amount in general.  My retirement accounts are slowly being fed via payroll deductions.  Maybe I worry too much...

Title: Re: Am I Staching enough?
Post by: slugline on June 22, 2015, 09:37:19 AM

Enough = ____?_____

Title: Re: Am I Staching enough?
Post by: Mirwen on June 22, 2015, 09:52:01 AM

Do you have a specific question we can help answer, or are you just venting?

If you want some advice, take the time to do a case study.  Fill in all the numbers.  Then we can give you some valuable feedback.

Title: Re: Am I Staching enough?
Post by: RWD on June 22, 2015, 09:58:44 AM

When do you want to stop working? What is "enough" depends on your personal goals.

10 years? Then you need to be saving around 70% of your post-tax income.
20 years? Then 45%.
30 years? 30% is sufficient.
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

Title: Re: Am I Staching enough?
Post by: trailrated on June 22, 2015, 10:39:37 AM

What is your income, what are your expenses, what is your savings rate, what are your goals, how old are you?

Otherwise it is like saying... I have some food what should I cook for dinner? How are we supposed to tell you if you don't say what kind of food you like, how many people are going to be dining with you, and what ingredients you have?

Title: Re: Am I Staching enough?
Post by: onehair on June 22, 2015, 10:50:44 AM

My income is $42805 per year.  My monthly take home after taxes and deductions is $1184.  I calculated I save $71 a month through allotments to various accounts.  I am sorry to have been so vague it's a combination of venting and worry.  I want to retire in 10 years with hopefully enough money to cover my future expenses which I believe will be about $2500 monthly.  I used to save $126 a month so I want to get back up to that goal or more to start.

Title: Re: Am I Staching enough?
Post by: CowboyAndIndian on June 22, 2015, 10:56:18 AM

You say you need $2500/month, which is $30k/year.

For this amount of money you need to have $750k in your FIRE fund (4% rule).

If you do not have any other sources of income starting in 10 years (Social Security, pensions etc), I do not see how you are going to meet that goal seeing that your present savings rate is so anemic.

Please do go ahead and put up a case study. The good folks on this forum will be able to give you valuable feedback to cut your earnings and save more.

Best of luck.

Title: Re: Am I Staching enough?
Post by: MDM on June 22, 2015, 11:07:16 AM

Quote from: onehair on June 22, 2015, 10:50:44 AM

My income is $42805 per year.  My monthly take home after taxes and deductions is $1184.  I calculated I save $71 a month through allotments to various accounts. 

Approx. $1600/mo (depending on assumptions for the table below) is a lot of deductions.  Can you confirm...?

Category	Monthly	Comments	Annual
Salary/Wages	$3,567		$42,805
Federal Total Inc.	$3,567		$42,805
Federal tax	$368	2015 rates, S, stand. ded., 1 exempt.	$4,415
State/City tax	$135	Guess, using 5.00% * Fed. Taxable	$1,625
Soc. Sec.	$221	Assumes 1 earner paying	$2,654
Medicare	$52		$621
Total income taxes	$776		$9,314
Income before other expenses	$2,791		$33,491

Title: Re: Am I Staching enough?
Post by: rubybeth on June 22, 2015, 11:12:30 AM

Quote from: onehair on June 22, 2015, 10:50:44 AM

My income is $42805 per year.  My monthly take home after taxes and deductions is $1184.  I calculated I save $71 a month through allotments to various accounts.  I am sorry to have been so vague it's a combination of venting and worry.  I want to retire in 10 years with hopefully enough money to cover my future expenses which I believe will be about $2500 monthly.  I used to save $126 a month so I want to get back up to that goal or more to start.

Your numbers don't make sense to me. Income is $42,805 per year, but your monthly take home is only $1,184? Do you mean per paycheck, in which case, two or more paychecks per month? If it's per month, you are only bringing home $14,208 a year--maybe a lot of deductions for health insurance, HSA, pension, other insurance? Do you have a 401k?

If you need $30,000 per year, you need to save a heck of a lot more than $126/month to be able to retire in 10 years. At that rate, you can retire in... 68 years!

http://networthify.com/calculator/earlyretirement?income=42805&initialBalance=4000&expenses=41293&annualPct=5&withdrawalRate=4

I think your numbers must be off in some way.

Title: Re: Am I Staching enough?
Post by: onehair on June 22, 2015, 11:55:12 AM

They are off I will put up a case study with all the info I can grab for my analysis.