Author Topic: Finally, A proper savings rate....  (Read 3673 times)

HairyUpperLip

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Finally, A proper savings rate....
« on: April 30, 2014, 07:09:38 AM »
Please correct me if I calculated this incorrectly...

But I do believe I have achieved a savings rate of 73%!!!

April

Earned =
4,555.99   

Saved =
3,356.25   

Savings Rate=
73.67%


Very happy as this my best month since becoming completely debt free. Can't really text my friends and share the excitement so sharing it with my MMM friends!

:) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :) :)

kyanamerinas

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Re: Finally, A proper savings rate....
« Reply #1 on: April 30, 2014, 07:13:55 AM »
congratulations! that is an incredible saving rate! is it a one off month or will your rate be consistently around that? inspired, if rather jealous!

HairyUpperLip

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Re: Finally, A proper savings rate....
« Reply #2 on: April 30, 2014, 07:22:02 AM »
It's semi-consistent, lol. First month at this rate, but I think going forward we should be able to maintain it for the most part.

My wife and I are currently living with my mother as we save towards buying a house. I'm not paying any rent so this helps out big time.

Don't be jealous - you can do it too!

train_writer

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Re: Finally, A proper savings rate....
« Reply #3 on: April 30, 2014, 07:46:24 AM »
Great!!
And also, congratulations for being out of debt :).

I'll warn you, once my saving rate became 35 % last year, a month of 20 % felt as a 'downer'. Now that my saving rate is 45-55.. a month of 35 might feel like a downer, LOL. And I can imagine you will feel that way if next month is 60 %..

Do you plan to retire within 8 years? :D You are well on your way!

HairyUpperLip

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Re: Finally, A proper savings rate....
« Reply #4 on: April 30, 2014, 08:06:12 AM »
Great!!
And also, congratulations for being out of debt :).

I'll warn you, once my saving rate became 35 % last year, a month of 20 % felt as a 'downer'. Now that my saving rate is 45-55.. a month of 35 might feel like a downer, LOL. And I can imagine you will feel that way if next month is 60 %..

Do you plan to retire within 8 years? :D You are well on your way!

Well I will have lots of life changes/expenses as I have a 8 month old baby and we would like to have a second child still. Also, eventually we will get our own house which will greatly reduce amount saved as I will have to pay the mortgage then.

My goal is to keep the mortgage payment anywhere between 800-950. That should allow to save a little bit of coin still, but eventually my wife will also return to work. Once this happens I think we should have learned enough to be able to save 90% or so of whatever she makes.

Thankfully I earn a decent wage, so I know we could "live good" even solo on my pay, but I really want to escalate it and live comfortably when we do retire.

and hahahaha @ the downer comment. I am sure you are 100% correct about that. I have my savings accounts set up in different strategy methods...

Direct Deposit automatically puts $1800/mo into the house savings, $100/month into kids account, $250/month into investing account, etc - I think that should help it remain consistent.



dude

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Re: Finally, A proper savings rate....
« Reply #5 on: May 01, 2014, 09:50:25 AM »
Very nice!

I calculated our savings rate the other day, using various measures.

1. 401k's (+match)/savings account/retirement contribution/SS deductions/mortgage principal/student loan principal
2. Same as above but with employer share of retirement contribution included

Arrived at:
1. % of gross income = 37%, % of net income = 44%
2. % of gross income = 55%, % of net income = 65%

I'll go with the 65%!  ;-)

HairyUpperLip

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Re: Finally, A proper savings rate....
« Reply #6 on: May 01, 2014, 10:28:02 AM »
Very nice!

I calculated our savings rate the other day, using various measures.

1. 401k's (+match)/savings account/retirement contribution/SS deductions/mortgage principal/student loan principal
2. Same as above but with employer share of retirement contribution included

Arrived at:
1. % of gross income = 37%, % of net income = 44%
2. % of gross income = 55%, % of net income = 65%

I'll go with the 65%!  ;-)

haha - it's fair and a good number either way.

I think from what I've seen online a lot of people like to calculate their 401k into it. I prefer not too, as I want to save as much as possible after tax. That being said, I'm not hating on 44 or 65% Very good job sir!

Winston

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Re: Finally, A proper savings rate....
« Reply #7 on: May 01, 2014, 01:15:17 PM »
Very nice!

I calculated our savings rate the other day, using various measures.

1. 401k's (+match)/savings account/retirement contribution/SS deductions/mortgage principal/student loan principal
2. Same as above but with employer share of retirement contribution included

Arrived at:
1. % of gross income = 37%, % of net income = 44%
2. % of gross income = 55%, % of net income = 65%

I'll go with the 65%!  ;-)

Great job! I don't calculate it the same way as you do, but my numbers are similar. Go us!

I think from what I've seen online a lot of people like to calculate their 401k into it. I prefer not too, as I want to save as much as possible after tax.

Adding in 401(k) makes sense to me... I could make my after-tax savings rate look amazing by reducing my 401(k) contribution to zero :)  I prefer a calculation method that rewards good choices with fat savings numbers :)
« Last Edit: May 01, 2014, 01:17:19 PM by Winston »