Author Topic: New personal best in "savings rate" the last twelve months!  (Read 1949 times)

The_Dude

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The "Gauntlet: Long Term Net Worth Goals" thread got me motivated over the weekend to do one of my semi annual quicken updates. 

Depending on how you calculate it I hit over 50% gross savings the last 12 months.

There seems to be a hundred different ways people calculate their savings rates but I've always believed the best way for me is to look at savings as a % of my gross income so I include pre tax salary, any cash gifts, interest income, and any other non investment income.

I've dreamed of hitting a 50% plus rate however given that my effective tax rate is now up to 33% this means I have to live on 17% or less of my gross income.

Fun stats for the past year/LTM:

Gross savings rate based on pure cash flows = 51.6%
Gross savings rate including some accrual items like car depreciation = 49.2%

Take home (or net of taxes) savings rate on pure cash flows = 76.9%
Take home (or net of taxes) savings rate including some accrual items like car depreciation = 73.3%

For comparison my gross savings rate 1/1/2008 - 7/15/2013 has been 37.7%

PS. My wife and I are considering getting a divorce (but not breaking up) in order to save about 10% of our taxes.  It would drop my effective tax from 33% to just under 30% and save each of us several of thousands/yr.
« Last Edit: July 15, 2013, 11:22:34 PM by The_Dude »

arebelspy

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Re: New personal best in "savings rate" the last twelve months!
« Reply #1 on: July 15, 2013, 11:12:23 PM »
Congrats!  Living on 17% of your gross is pretty serious badassity.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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Phoebe

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Re: New personal best in "savings rate" the last twelve months!
« Reply #2 on: July 16, 2013, 01:59:09 PM »
Congratulations!  Awesome accomplishment!  I have friends that have never actually gotten married (though they call each other husband and wife) for tax reasons as well.