Author Topic: 2016 will be the year of the 40% savings rate  (Read 2453 times)

Gin1984

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2016 will be the year of the 40% savings rate
« on: December 21, 2015, 08:58:56 AM »
I just sat down to run the numbers to determine how much goes in our 403b (to optimize taxes) and discovered between debt repayment and retirement savings we will be at 40%.  I am not including HSA savings because I just discovered a thyroid issue and that might eat up the savings. 
My husband and I do have a side goal to increase our side income so who knows we may get a higher savings rate but knowing 40% as a start is just amazing for me.
ETA:  Oh and this is 40% of gross not net income.  :)

Ftao93

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Re: 2016 will be the year of the 40% savings rate
« Reply #1 on: December 21, 2015, 09:05:54 AM »
That's pretty awesome! 

we're at 26 and 5% for pre-tax (individually).  probably about 40% with what goes into emergency fund/house fund.

Gin1984

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Re: 2016 will be the year of the 40% savings rate
« Reply #2 on: December 21, 2015, 09:14:43 AM »
That's pretty awesome! 

we're at 26 and 5% for pre-tax (individually).  probably about 40% with what goes into emergency fund/house fund.
Most of our EF is actually either in our HSA or Roths because you can pull the money out and at least this way the gains are tax free.  We don't have enough to keep a large EF and max all our tax advantage accounts so we chose the tax advantage accounts.

Ftao93

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Re: 2016 will be the year of the 40% savings rate
« Reply #3 on: December 30, 2015, 12:49:24 PM »
We would do that too, but we're not sure when we'll be looking at home buying.  If we get my motorcycle paid off and still have a large EF in the bank, then we'll both max out our retirement accounts.  My wife just started a new job, so her's started at 5%.  We'll be looking to add a lot more to that after this year.

Jim2001

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Re: 2016 will be the year of the 40% savings rate
« Reply #4 on: December 30, 2015, 02:08:23 PM »
Gin1984, 40% will be a FANTASTIC achievement!  I managed 28% in 2015 and am shooting for a minimum of 35% and a stretch goal of 40% in 2016.

Keep it up!

Gin1984

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Re: 2016 will be the year of the 40% savings rate
« Reply #5 on: December 30, 2015, 02:24:27 PM »
We would do that too, but we're not sure when we'll be looking at home buying.  If we get my motorcycle paid off and still have a large EF in the bank, then we'll both max out our retirement accounts.  My wife just started a new job, so her's started at 5%.  We'll be looking to add a lot more to that after this year.
Keep in mind that if you have your Roth open for five years, you can pull our all the contributions plus $10K of earning for the house.  I'd totally use the Roth as a home buying account.