Just put a grand in savings without even blinking an eye.

[CabinetGuy]

I know it's not a big deal around here, and quite honestly it's become second nature for me.  But it struck me at just how easy it was to do...

My tax "refund" of 965.00 just hit my account (self employed, put 5500.00 into my IRA.). Voila, got a refund.  Checked out my mobile banking app, saw it hit my account, and transfered a clean 1000.00 into savings.  I mean, putting only 965.00 in is just wierd. 😄

Back on track to put away 36k this year (I didn't pay myself first couple of months). Which, if I hadn't found MMM a couple of years ago, I would have been freaking out.  Instead, I had plenty of money in savings, and was able to tackle some rather large bids. If I get even one of the jobs I'm bidding on, it will make for a killer year.  Before I found this lifestyle, I would be cutting my wages to keep the lights on, and constantly struggling while "On the tools."

I know it's a lot of writing to describe "just" putting a grand in savings, but damn has my outlook changed.

Jon

[ender]

:)

[HenryDavid]

Way to go.

Habits of thinking change . . . actions change . . . habits change even more: it's a reinforcing loop.
After a while you say "why did I ever think this would be hard?"
But at first, it was.

Just got my own tax refund, immediately made an extra mortgage payment. Bank person on the phone said "wow you're really killing this thing. Almost got it paid off."
Meanwhile, we're not doing without a single thing that makes life good. (Except . . . . granite countertops! OMG ours are still laminate. Waaa.)

[Cougar]

Which, if I hadn't found MMM a couple of years ago, I would have been freaking out.  Instead, I had plenty of money in savings, and was able to tackle some rather large bids. If I get even one of the jobs I'm bidding on, it will make for a killer year.  Before I found this lifestyle, I would be cutting my wages to keep the lights on, and constantly struggling while "On the tools."

I know it's a lot of writing to describe "just" putting a grand in savings, but damn has my outlook changed.

Jon

congrats and second that.

before mmm, i was nervous; but not now that my expenses have crashed thru the floor and savings have shoot thru the roof and when we sell the 2nd car, it'll go up another 500 monthly. about a month away from pushing the savings up over 60%. do that for 3 years and i can take any job or no job.

[Exflyboy]

yup, make new habits.. Its the way to go!.. Well done!

[trailrated]

Sooooo awesome! Keep kicking ass and taking names!


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[StockBeard]

Congrats! I love that kind of thread, it helps me keep my motivation!

[CabinetGuy]

Thanks everyone.  As a bonus, I just made my last truck payment this month (I'm a cabinetmaker, so don't be so quick to judge! 😝)

Get to put an extra 250.00 a month into savings now.  Snowball building momentum...

[Gone Fishing]

Keep it up, it only gets better!  Before long you will be talking about how you put $5k into savings like it was nothing!

[CabinetGuy]

Ok, so I'm mentally all over the place.  I've gotten better at stuffing money away, but I just turned 40 and have very little to show for it.  Especially compared to others on this site.  I know every situation is unique and comparing isn't necessarily the best thing to do...

But please help me keep motivated.  I have a goal of saving 36k a year.  I'm self employed, cash flow can be erratic.  With only 12k in investments, I know I won't be retiring any time soon.  But will this savings rate even help me if I keep it up for ten years?  I'm not great with even figuring compound interest, so I'm only thinking that in 10 years I would have 360k at least.  And that's if I never slip up and never miss a month of hitting that mark.

Compared to non-mustacians, is putting 3k a month aside considered a lot?  I just keep kicking myself for spending everything I've ever earned.

Thanks guys. 

[rugorak]

First off kudos. Even for some mustacians 3k a month is a lot. It all depends on how much you are making a year. This article will help you with when you could retire.

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

Don't kick yourself too much. Everyone has made mistakes. Most of us probably did similar things as you. I know I had credit card debt in my 20's that I am not happy that I did. The key thing is you have changed your ways and are on the path you want to be now.

For motivation besides all the great things here check out some of the other blogs. MMM isn't the only one to have done this. And seeing different perspectives helps me see that I can design/plan the life best for me. jlcollinsnh, go curry cracker, the mad fientist are some of my favorites (besides MMM of course).

[Bracken_Joy]

Ok, so I'm mentally all over the place.  I've gotten better at stuffing money away, but I just turned 40 and have very little to show for it.  Especially compared to others on this site.  I know every situation is unique and comparing isn't necessarily the best thing to do...

But please help me keep motivated.  I have a goal of saving 36k a year.  I'm self employed, cash flow can be erratic.  With only 12k in investments, I know I won't be retiring any time soon.  But will this savings rate even help me if I keep it up for ten years?  I'm not great with even figuring compound interest, so I'm only thinking that in 10 years I would have 360k at least.  And that's if I never slip up and never miss a month of hitting that mark.

Compared to non-mustacians, is putting 3k a month aside considered a lot?  I just keep kicking myself for spending everything I've ever earned.

Thanks guys.

How much you'll have depends on where you're putting it. If you're keeping that $36k each year in a basic checking account, yes, at the end of 10 years you'll pretty much just have the $360k you put in (this is called the "principal"). But if you invest it, and that compound interest is working, you will make a lot more. You can use something like this to estimate it: http://www.mycalculators.com/ca/savecalcm.html

For example, in your case, at a 5% return compounded annually you would have $482,636.2, but if you get 8% return compounded annually, you will have $566,279.92  Play around with the calculator and the different settings and you can see how much it will be worth under different conditions.

As for savings, we tend to talk in % of earning instead of absolute numbers. Saving $3k a month is HUGE if you're making $3.5k a month. But if you make $12k/mon and are saving $3k? Not quite as impressive. The blog post someone linked above is why most people on the site talk savings rate as a %.

[forummm]

It's even better when you can put the investing on autopilot. I setup automatic investments with Vanguard and the money just gets pulled over there every time we get paid. The money piles up and you don't even have to lift a finger.

[rhony]

Dumb question to all the experts here: Do you consider your 401k and other retirement contributions as savings? Is the 3K savings after you contributed to your retirement ?

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[CabinetGuy]

Thanks everyone.  Good to know that if I can keep this up and sustain it I'll have a half a mil in ten years.

Have a doozy of a story for you:  was on the phone with USAA talking about setting up an investment account.  Told the guy I would like to retire early.  Before I could get the words out of my mouth he said, "cmon, we both know we'll be working til we're 65..."  Dude!  I'm trying to get my shit together.  Stop harshing my buzz...

Jon

[Sibley]

Way to go.

Habits of thinking change . . . actions change . . . habits change even more: it's a reinforcing loop.
After a while you say "why did I ever think this would be hard?"
But at first, it was.

Just got my own tax refund, immediately made an extra mortgage payment. Bank person on the phone said "wow you're really killing this thing. Almost got it paid off."
Meanwhile, we're not doing without a single thing that makes life good. (Except . . . . granite countertops! OMG ours are still laminate. Waaa.)

Don't bother with granite countertops. They show everything (fingerprints!) and look dirty. Plus, you can't clean them with just anything, you can damage the granite.

[rugorak]

Dumb question to all the experts here: Do you consider your 401k and other retirement contributions as savings? Is the 3K savings after you contributed to your retirement ?

It is personal preference but since most of us are saving for FIRE I imagine most of us would consider tax advantaged accounts as saving.

Have a doozy of a story for you:  was on the phone with USAA talking about setting up an investment account.  Told the guy I would like to retire early.  Before I could get the words out of my mouth he said, "cmon, we both know we'll be working til we're 65..."  Dude!  I'm trying to get my shit together.  Stop harshing my buzz...

This isn't surprising. Most people do not and will not get it. You'll see many threads on the forum about how people generally don't talk about FIRE with just anyone. It usually ends with something like that. The idea that you will "sacrifice" getting the latest gadget, car, whatever so that you can have financial freedom doesn't make any sense to them. It is ok though. Do what works for you. Let them do what works for them. Chances are some day they'll start to see the light. Usually when they either have some sort of emergency that they cannot afford or when they see you succeed.

[JLee]

Ok, so I'm mentally all over the place.  I've gotten better at stuffing money away, but I just turned 40 and have very little to show for it.  Especially compared to others on this site.  I know every situation is unique and comparing isn't necessarily the best thing to do...

But please help me keep motivated.  I have a goal of saving 36k a year.  I'm self employed, cash flow can be erratic.  With only 12k in investments, I know I won't be retiring any time soon.  But will this savings rate even help me if I keep it up for ten years?  I'm not great with even figuring compound interest, so I'm only thinking that in 10 years I would have 360k at least.  And that's if I never slip up and never miss a month of hitting that mark.

Compared to non-mustacians, is putting 3k a month aside considered a lot?  I just keep kicking myself for spending everything I've ever earned.

Thanks guys.

$3k/mo is my net income from work. So....yeah, that's a lot to many people.  At your current rate you'll likely be in the $550k neighborhood in ten years (assuming investments with 8% return).