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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Jenny1974 on August 05, 2014, 12:16:49 PM

Title: Savings Rate Help
Post by: Jenny1974 on August 05, 2014, 12:16:49 PM
Been reading these forums for some time and finally got around to calculating our savings rate.  Not sure if I did it 100% correct so I was hoping I can get some Mustachian input on my calculation.

Savings Category                                            Per Year
Monthly Excess Cash                                           30,000
Principle on House                                               14,400
Bonus (after taxes and 401k)                                 20,000
Equity Comp (after taxes)                                      25,000
401k (Employee)                                                  30,550
401k (Employer)                                                   13,410
Employer-Funded Retirement (besides 401k)           16,650
Total Savings                                                        150,010

Income 1                                                              222,500
Income 2                                                                45,000
Income for Employer 401k Match/Retirement Plan      30,060
Total Income                                                          297,560
   
Based on total savings/total income, we are at a savings rate of approximately 50%.  The "401k (Employee)" and "401k (Employer) amounts are for both myself and DH combined.  "Income 1" consists of base, bonus and equity comp and "Income 2" is base plus commission.  Not sure about including the "Principle on House" in savings but I added this on the assumption that, at a minimum, we would get back what we paid for the house upon sale.

I also didn't include any interest/dividends on investments to be conservative.

Thanks in advance for your input.