Author Topic: 80% Savings Rate  (Read 30448 times)

MonkeyJenga

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80% Savings Rate
« on: December 31, 2015, 11:52:35 AM »
My crazy stretch goal for 2016 is an 80% savings rate. This would require ridiculous stuff that's not going to happen... UNLESS I MAKE IT HAPPEN. What radical changes would you need to implement to hit an 80% savings rate?

Savings rate calculation used. Short summary, courtesy of dandarc: use your take-home-pay + any retirement contributions that were deducted from your income as your after-tax-income.  If you get a match, count it both as savings and income.

Options:
  • Cheaper rent - would make the biggest impact
  • Zero restaurant spending, minimal groceries
  • Bring gas/electric costs down
  • Go without internet for a few months
  • Eliminate Metrocard spending and switch to 100% bike commuting
  • Never take a cab, starting with NYE
  • Get a raise
  • Bring in substantial side income
  • Receive cash gifts (Dear Hannukah Harry...)
  • Eliminate health insurance costs and get stipend from work (ETA: I would still have health insurance at a negligible cost through a non-work option)
  • If I take any trips, use points/card bonuses to keep costs negligible
« Last Edit: December 31, 2015, 04:19:53 PM by MonkeyJenga »

Cathy

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Re: 80% Savings Rate
« Reply #1 on: December 31, 2015, 12:04:28 PM »
Maximising your savings rate can actually prolong your working career. In an example I posted earlier today, the person who elects the 76% savings rate will be able to retire several years earlier than the person with the 88% savings rate. This is not a new observation and has been the subject of many past threads. It somewhat undermines the point of the present thread because there's no reason to strive for an 80% savings rate, or any arbitrary savings rate, if doing so will actually lengthen the time you need to work.
« Last Edit: December 31, 2015, 12:09:12 PM by Cathy »
This post contains only general information on the issues raised by this topic. This post does not provide help tailored to your specific situation. There are many facts that could be relevant to your specific situation and I am not in possession of those facts. If you need help tailored to your specific situation, you should retain an appropriate professional and not rely on this post.

sirdoug007

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Re: 80% Savings Rate
« Reply #2 on: December 31, 2015, 12:13:59 PM »
Are you talking about giving up health insurance to increase your savings rate?  If you get sick/injured the destruction of your stache could far outweigh a few % more in savings rate.


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dandarc

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Re: 80% Savings Rate
« Reply #3 on: December 31, 2015, 12:43:33 PM »
Maximising your savings rate can actually prolong your working career. In an example I posted earlier today, the person who elects the 76% savings rate will be able to retire several years earlier than the person with the 88% savings rate. This is not a new observation and has been the subject of many past threads. It somewhat undermines the point of the present thread because there's no reason to strive for an 80% savings rate, or any arbitrary savings rate, if doing so will actually lengthen the time you need to work.
You keep saying this without stating the underlying assumption - your retirement expenses are going to be the same whether you accumulate in high income / high expense or low income / low expense scenarios.  For example, you'll retire to the LCOL area regardless of where you accumulate.  To me, that's a big assumption.

Cookie78

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Re: 80% Savings Rate
« Reply #4 on: December 31, 2015, 12:44:43 PM »
My savings rate was 69% this year, including one expensive (by my standards) international trip, but I'm not sure I could do 80% without impacting my quality of life.

Easy things I could do:

Calculate my savings rate differently. Right now I include my rental property income as income and expenses as expenses (except maintenance and repairs - long story). If I calculate my rental income as income - expenses my savings rate would go up.

Get a cheaper phone plan.

Bike more, bus less.

Travel hacking for flights.


Things I could do, but likely won't:

Get a second job.

Get a roommate for my spare room.

Cancel internet.

Get rid of pet. Never.

Sell car. I don't use my car to commute anymore, but if I didn't have it I would see my friends far less often. I would also be more dependent on others. The biggest downside is that I would not be able to visit my family as often. There is zero public transit that goes to my home town. The nearest airport and bus station is an hour away and someone would have to pick me up. I would also have to borrow a vehicle while I was there if I wanted to see my dad (or walk 16 miles). No taxi, no rental cars. In addition, flights are about $500. This year I went home 4 times (half the time driving with other people). Flights would add up. And if I fly I can't bring my dog and would be paying boarding costs in addition. Dog loves car rides. I could rent a car in my city for the entire trip. I haven't looked into costs for that.

Cathy

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Re: 80% Savings Rate
« Reply #5 on: December 31, 2015, 12:47:59 PM »
You keep saying this without stating the underlying assumption - your retirement expenses are going to be the same [regardless of the accumulation strategy].

You are correct that I have not been explicitly stating this assumption. That is a literary device to make people think about their choice of strategies carefully.


To me, that's a big assumption.

I think it's a reasonable assumption.

To be fair, some people might be subject to restrictions on their movement. For example, some people might be on supervised release after leaving jail and might be limited to living in a certain city or even in a particular area within that city. Those people have less flexibility in their choice of strategy. However, for those of us who are free to come and go as we please, there's no reason to think that accumulating money in a city with more expensive real estate will somehow force our retirement to be more expensive. There will be a one-time moving expense but that is negligible in the overall scheme of early retirement.
« Last Edit: December 31, 2015, 12:53:16 PM by Cathy »
This post contains only general information on the issues raised by this topic. This post does not provide help tailored to your specific situation. There are many facts that could be relevant to your specific situation and I am not in possession of those facts. If you need help tailored to your specific situation, you should retain an appropriate professional and not rely on this post.

JZinCO

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Re: 80% Savings Rate
« Reply #6 on: December 31, 2015, 01:03:23 PM »
Glad someone else questioned Cathy's logic. She's playing hide the ball with expense arbitrage.

All else being equal, increasing savings rate will push one to their target sooner. To the OP, good luck for you. I could move from 70 to 75% if I tried really really hard to hustle on the side at some expense to enjoyment of life.
« Last Edit: December 31, 2015, 01:25:27 PM by JZinCO »
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dandarc

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Re: 80% Savings Rate
« Reply #7 on: December 31, 2015, 01:08:38 PM »
You keep saying this without stating the underlying assumption - your retirement expenses are going to be the same [regardless of the accumulation strategy].

You are correct that I have not been explicitly stating this assumption. This is a literary device to make people think about their choice of strategies carefully.


To me, that's a big assumption.

I think it's a reasonable assumption.

To be fair, some people might be subject to restrictions on their movement. For example, some people might be on supervised release after leaving jail and might be limited to living in a certain city or even in a particular area within that city. Those people have less flexibility in their choice of strategy. However, for those of us who are free to come and go as we please, there's no reason to think that accumulating money in a city with more expensive real estate will somehow cause our retirement to be more expensive. There will be a one-time moving expense but that is negligible in the overall scheme of early retirement.
Yeah - the choice is always there.  Guess I was just trying to get at the value of the non-financial aspects that might convince you to stay. 

At least for me, the one time I moved a long distance purely for money sucked.  Bad.  Like less than 2 years later I was seriously contemplating trying to go back to my old job / location for substantially less money, because I was so unhappy.  Granted, I stuck it out, met my wife, and things have been way, way better since, but when I made the decision to make that move, I was very much under-valuing the non-financials.

Now you've got me itching to try and come up with an agreement with my wife that if I can find a job that pays $XXX, we'll move.  So good on making me think about it.  XXX might be so big it is more like a pipe-dream though.

2Birds1Stone

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Re: 80% Savings Rate
« Reply #8 on: December 31, 2015, 01:22:11 PM »
Maximising your savings rate can actually prolong your working career. In an example I posted earlier today, the person who elects the 76% savings rate will be able to retire several years earlier than the person with the 88% savings rate. This is not a new observation and has been the subject of many past threads. It somewhat undermines the point of the present thread because there's no reason to strive for an 80% savings rate, or any arbitrary savings rate, if doing so will actually lengthen the time you need to work.

This is very flawed logic, or lack there of.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #9 on: December 31, 2015, 01:26:49 PM »
Are you talking about giving up health insurance to increase your savings rate?  If you get sick/injured the destruction of your stache could far outweigh a few % more in savings rate.

Should've clarified upfront - I would have virtually free health insurance through another avenue. For various complicated reasons, I haven't made that change. I wouldn't go without insurance completely.

Cookie78 - I like that you thought about ideas even if you know you're not going to do all of them! Are you going to try any of the easy options?

All else being equal, increasing savings rate will push one to their target sooner. To the OP, good luck for you. I could move from 70 to 75% if I tried really really hard to hustle on the side at some expense to enjoyment of life.

Thanks! I figure even if I don't hit 80% exactly, this might push me to make some changes I wouldn't otherwise. I am trying to do all this while still increasing my happiness, as many changes I made in 2015 did.

Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions. Is the argument that I could move to an expensive area, get a higher salary that outweighs the increased costs, save a higher dollar amount (but lower %), and retire back to a LCOL? I already live in an area with high rents, and I have the inflated salary to go along with it. Any increase in SR now will do one or all of the following:

Reduce my expenses, which will likely carry over into reduced retirement expenses (e.g., learning to cook more cheaply, biking instead of public transit)
Increase my salary, which will give me more money to save in the short-term
Push me to develop a side income that can continue in semi-retirement, allowing me to quit my day job sooner
Make me more of a badass

Cathy

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Re: 80% Savings Rate
« Reply #10 on: December 31, 2015, 01:34:17 PM »
Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions...

As with all of my posts, I was not commenting on your specific situation. My point is valid though. Oftentimes on these forums, people use savings rate as a proxy for length of time to retirement or "level of hardcoreness", and it is not a reliable indicator of either of those, in general. I don't claim this is a novel point, but it's worth repeating because it's so important to understand for people who don't benefit from the good fortune of having some form of committed relationship to propel them to retirement at the speed of light.
« Last Edit: December 31, 2015, 01:36:25 PM by Cathy »
This post contains only general information on the issues raised by this topic. This post does not provide help tailored to your specific situation. There are many facts that could be relevant to your specific situation and I am not in possession of those facts. If you need help tailored to your specific situation, you should retain an appropriate professional and not rely on this post.

JZinCO

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Re: 80% Savings Rate
« Reply #11 on: December 31, 2015, 01:43:18 PM »
All else being equal, increasing savings rate will push one to their target sooner. To the OP, good luck for you. I could move from 70 to 75% if I tried really really hard to hustle on the side at some expense to enjoyment of life.

Thanks! I figure even if I don't hit 80% exactly, this might push me to make some changes I wouldn't otherwise. I am trying to do all this while still increasing my happiness, as many changes I made in 2015 did.

Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions. Is the argument that I could move to an expensive area, get a higher salary that outweighs the increased costs, save a higher dollar amount (but lower %), and retire back to a LCOL? I already live in an area with high rents, and I have the inflated salary to go along with it. Any increase in SR now will do one or all of the following:

Reduce my expenses, which will likely carry over into reduced retirement expenses (e.g., learning to cook more cheaply, biking instead of public transit)
Increase my salary, which will give me more money to save in the short-term
Push me to develop a side income that can continue in semi-retirement, allowing me to quit my day job sooner
Make me more of a badass
Defintely badass. I'm guess you already have a high base salary. Again, I couldn't if I tried unless I rip my lease and sleep in the office.

So, I'll try to find common ground with Cathy; if I understand what she is saying correctly. All else being equal, a higher SR is decrease time to FI. All else being equal, a higher decrease in expenses at retirement will decrease time to FI.
Teasing the two apart is very helpful. So per Cathy's examples, it is true that increasing income while decreasing savings rate will expedite time to FIRE, but only because it coincides with an increased reduction of expenses at retirement.
So in her examples, if you are in a LCOL area and have a high savings rate but move to a HCOL and have a low savings rate, the time spent in the HCOL with help you if you move back to a LCOL because expense at retirement falls. But if you continue to stay in the HCOL, the time spent in the LCOL with a high savings rate was actually a drag because expense at retirement rose. One should have just moved earlier to decrease time to fire.
Again, teasing the two apart is very imporant. That's why I really like Tyler's portfolio charts time to fire calc.
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Cookie78

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Re: 80% Savings Rate
« Reply #12 on: December 31, 2015, 01:51:19 PM »

Cookie78 - I like that you thought about ideas even if you know you're not going to do all of them! Are you going to try any of the easy options?

Absolutely. :)
I made lots of changes in 2015, but there are still some things I can do to improve in 2016.

Changing my banking situation to eliminate fees is another one I didn't already list.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #13 on: December 31, 2015, 01:59:13 PM »
Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions...

As with all of my posts, I was not commenting on your specific situation.

I know, I read your tagline. :)

Should I have said "I appreciate the attempt to challenge people's assumptions"?

My counterpoint is valid for many people: increasing your SR now will generally help you get to FI faster, due to either more money saved or less money needed. Thinking about radical ways to do this can help challenge assumptions. If geographic arbitrage works for somebody who consciously chooses a lower SR, more power to them.

All else being equal, increasing savings rate will push one to their target sooner. To the OP, good luck for you. I could move from 70 to 75% if I tried really really hard to hustle on the side at some expense to enjoyment of life.

Thanks! I figure even if I don't hit 80% exactly, this might push me to make some changes I wouldn't otherwise. I am trying to do all this while still increasing my happiness, as many changes I made in 2015 did.

Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions. Is the argument that I could move to an expensive area, get a higher salary that outweighs the increased costs, save a higher dollar amount (but lower %), and retire back to a LCOL? I already live in an area with high rents, and I have the inflated salary to go along with it. Any increase in SR now will do one or all of the following:

Reduce my expenses, which will likely carry over into reduced retirement expenses (e.g., learning to cook more cheaply, biking instead of public transit)
Increase my salary, which will give me more money to save in the short-term
Push me to develop a side income that can continue in semi-retirement, allowing me to quit my day job sooner
Make me more of a badass
Defintely badass. I'm guess you already have a high base salary. Again, I couldn't if I tried unless I rip my lease and sleep in the office.

Yep, pretty high salary. And there's no harm in testing the comfort of a yoga mat under your desk! Hah.

What you said about Cathy's example lines up with my understanding. One of my RE options is moving to a LCOL, and my time saving buckets o' money in NY will make that more achievable.


Cookie78 - I like that you thought about ideas even if you know you're not going to do all of them! Are you going to try any of the easy options?

Absolutely. :)
I made lots of changes in 2015, but there are still some things I can do to improve in 2016.

Changing my banking situation to eliminate fees is another one I didn't already list.

I've actually been meaning to get a debit card that reimburses me for ATM fees. Thanks for the reminder. It's <$10 a year, but still. Pointless.

With your earlier "not likely" roommate option, have you considered testing out Airbnb? Low commitment, can see how it goes and stop if you hate it.

Cookie78

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Re: 80% Savings Rate
« Reply #14 on: December 31, 2015, 02:07:22 PM »
Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions...

As with all of my posts, I was not commenting on your specific situation.

I know, I read your tagline. :)

Should I have said "I appreciate the attempt to challenge people's assumptions"?

My counterpoint is valid for many people: increasing your SR now will generally help you get to FI faster, due to either more money saved or less money needed. Thinking about radical ways to do this can help challenge assumptions. If geographic arbitrage works for somebody who consciously chooses a lower SR, more power to them.

All else being equal, increasing savings rate will push one to their target sooner. To the OP, good luck for you. I could move from 70 to 75% if I tried really really hard to hustle on the side at some expense to enjoyment of life.

Thanks! I figure even if I don't hit 80% exactly, this might push me to make some changes I wouldn't otherwise. I am trying to do all this while still increasing my happiness, as many changes I made in 2015 did.

Cathy, I don't think your example applies to me, although I appreciate the attempt to challenge my assumptions. Is the argument that I could move to an expensive area, get a higher salary that outweighs the increased costs, save a higher dollar amount (but lower %), and retire back to a LCOL? I already live in an area with high rents, and I have the inflated salary to go along with it. Any increase in SR now will do one or all of the following:

Reduce my expenses, which will likely carry over into reduced retirement expenses (e.g., learning to cook more cheaply, biking instead of public transit)
Increase my salary, which will give me more money to save in the short-term
Push me to develop a side income that can continue in semi-retirement, allowing me to quit my day job sooner
Make me more of a badass
Defintely badass. I'm guess you already have a high base salary. Again, I couldn't if I tried unless I rip my lease and sleep in the office.

Yep, pretty high salary. And there's no harm in testing the comfort of a yoga mat under your desk! Hah.

What you said about Cathy's example lines up with my understanding. One of my RE options is moving to a LCOL, and my time saving buckets o' money in NY will make that more achievable.


Cookie78 - I like that you thought about ideas even if you know you're not going to do all of them! Are you going to try any of the easy options?

Absolutely. :)
I made lots of changes in 2015, but there are still some things I can do to improve in 2016.

Changing my banking situation to eliminate fees is another one I didn't already list.

I've actually been meaning to get a debit card that reimburses me for ATM fees. Thanks for the reminder. It's <$10 a year, but still. Pointless.

With your earlier "not likely" roommate option, have you considered testing out Airbnb? Low commitment, can see how it goes and stop if you hate it.

I've considered it. I'd have to furnish it too, but that's certainly doable. The biggest concerns I have are the fact that I have only 1 bathroom, I have a dog who I'd worry about getting out of the house, and I like my quiet space. Lately I've been considering renting to a close and trusted enough friend that none of the above would matter.

At the moment though, I need to focus on getting a renter for my basement suite at the other house which is vacant as of tomorrow.

As for my getting rid of car example I'm curious if it sounds like a pile of excuses from an outside perspective, or do my reasons sound reasonable?

Altons Bobs

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Re: 80% Savings Rate
« Reply #15 on: December 31, 2015, 02:55:36 PM »
Do you count the % after tax?  I can't even legally save 80% because I still have to pay taxes.

dandarc

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Re: 80% Savings Rate
« Reply #16 on: December 31, 2015, 03:11:05 PM »
Do you count the % after tax?  I can't even legally save 80% because I still have to pay taxes.
In this context, you generally take your take-home-pay + any retirement contributions that were deducted from your income as your after-tax-income.  If you get a match, count it both as savings and in income.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #17 on: December 31, 2015, 04:16:18 PM »
Do you count the % after tax?  I can't even legally save 80% because I still have to pay taxes.
In this context, you generally take your take-home-pay + any retirement contributions that were deducted from your income as your after-tax-income.  If you get a match, count it both as savings and in income.

Agreed. I added some explanation to the first post.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #18 on: December 31, 2015, 04:30:25 PM »
As for my getting rid of car example I'm curious if it sounds like a pile of excuses from an outside perspective, or do my reasons sound reasonable?

Well it's certainly an intimidating pile of excuses, and not helped by the fact that my eyes glaze over when they encounter car-talk.

It does seem like a car is a good option for you unless you wanted to become a hermit. How much does it actually cost you, and are there other ways to mitigate the costs? Shop around for insurance, ride-sharing (which it sounds like you might do already?), something else I wouldn't know about because I hate cars? Any distances short enough to bike?

I made a conscious decision years ago to attend my friends' out-of-state weddings, so I've spent my share of non-optimized travel dollars in the name of staying connected to people.

Cookie78

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Re: 80% Savings Rate
« Reply #19 on: December 31, 2015, 05:14:28 PM »
As for my getting rid of car example I'm curious if it sounds like a pile of excuses from an outside perspective, or do my reasons sound reasonable?

Well it's certainly an intimidating pile of excuses, and not helped by the fact that my eyes glaze over when they encounter car-talk.

It does seem like a car is a good option for you unless you wanted to become a hermit. How much does it actually cost you, and are there other ways to mitigate the costs? Shop around for insurance, ride-sharing (which it sounds like you might do already?), something else I wouldn't know about because I hate cars? Any distances short enough to bike?

I made a conscious decision years ago to attend my friends' out-of-state weddings, so I've spent my share of non-optimized travel dollars in the name of staying connected to people.

Per month this year

Insurance is $77.28
Registration is $7.04
Repairs and maintenance $6.11
Gas $39.96 (road trip gas is listed under that travel budget and an estimated additional $69)

Total $130.39 (or $199.39)CAD / month

My insurance is pretty low I think. Last time I shopped around I didn't find any better options, but I should look again. I am probably over insured given the age of the car now, and it's my highest car related expense. (Adding that to the list! thanks!) Repairs and maintenance can't get much lower than it did this year, but I should get the ramp thingies so I can do my own oil changes. I don't honestly know how my non travel gas costs are so high going back and forth to friend's houses and Spanish meetups, but part of it is my contribution to gas money for my brother and his SO driving me around for a hunting trip.

I started biking this year! Every day in the summer to work, rain or shine, but not in the winter. I normally walk to the grocery store. I do drive to the pet store for food every couple months, but try to combine that with other errands. I don't use my car much when I'm at home, maybe once or twice a week on average, but it sure is handy for visiting friends and far away family. I feel like without it I would quickly become depressed hermit. And right now, connecting with people is one of my top priorities and reasons for retiring early.

steveo

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Re: 80% Savings Rate
« Reply #20 on: December 31, 2015, 06:12:51 PM »
I don't use my car much when I'm at home, maybe once or twice a week on average, but it sure is handy for visiting friends and far away family. I feel like without it I would quickly become depressed hermit. And right now, connecting with people is one of my top priorities and reasons for retiring early.

I'm married and we have 2 cars. I'm going to get rid of one of them this year but I think we need a car and I think your explanations are a good reason why you need a car as well. I think the trick is to minimise the use of cars and to try and minimise the cost of them.

In stating that could you just rent one when you need it. I'd like my wife to do this with the second car at some point but currently she doesn't agree with this.

Exhale

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Re: 80% Savings Rate
« Reply #21 on: January 01, 2016, 05:46:50 PM »
I don't use my car much when I'm at home, maybe once or twice a week on average, but it sure is handy for visiting friends and far away family. I feel like without it I would quickly become depressed hermit. And right now, connecting with people is one of my top priorities and reasons for retiring early.

I'm struggling with this very question. I don't have a car (expense, environment). However I know from past experience that, if I did have one, I'd have a more satisfying social life. (Note: I can't bike due to a disability.)

For example, if I had a car I'd:
- Go to weekly meditation meetings (area isn't safe in evening and is underserved by bus)
- Support/attend local cultural events (locations require two buses, buses on infrequent evening schedules)
- See my friends more (several live in areas underserved/not served by bus)
- Get out of town to go hiking (via carpooling, but I still have to get to meeting points rarely served by bus)

I've tried Zip Car which is good for once-in-awhile short errands, but not for most of the things I've listed above. Occasionally (when there's a good special discount) I've rented a car for the weekend and used that time to pack in out-of-town hikes, errands/shopping for heavy items, and socializing. However, my desire for the car is because it'd support me to become an ongoing part of communities that are important to me (weekly meditation and hiking groups, meditation retreats, Spanish-speaking community, volunteering, and going to friends' houses).

Of course, post-FIRE I could move to a place that made living without a car a bit easier (right now I rent a room near to where I work). However, if I stay in my current city, that'd entail moving to a more urban neighborhood which is a vibe I don't love and, also, the hiking and volunteering would still be difficult minus a car. So that brings me back to staying in the neighborhood I like, pushing out my FIRE date, and getting a car so I can build and maintain a strong community for myself. Lots to consider...
« Last Edit: January 01, 2016, 05:59:58 PM by Exhale »

CanuckExpat

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Re: 80% Savings Rate
« Reply #22 on: January 01, 2016, 11:44:37 PM »
We try to hit an 80% savings rate most months. We were first able to do that when I finished grad school and got one of those "job" things people are always talking about, so we went from a single income + stipend/pittance, to dual income family; maybe not the most generalizable situation. We also only reach 80% if you count the principal component of our mortgage payment as savings, so that's a little bit of a nice lie we tell ourselves. Now that we pay for daycare, I'm not sure if we make 80% anymore, will have to do a year end tally.

So to summarize, getting an 80% savings rate is easy if:
1) You have a lazy grad student spouse you can make work or some other way of doubling your household income
2) You are willing to play accounting tricks (if it's good enough for Enron, it's good enough for you!)
3) You don't have unprotected sex.

I don't think any of this is good advice, but I wanted to post to follow and pretend like I could contribute.

arpies

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Re: 80% Savings Rate
« Reply #23 on: January 02, 2016, 03:07:00 AM »
Savings rate calculation used. Short summary, courtesy of dandarc: use your take-home-pay + any retirement contributions that were deducted from your income as your after-tax-income.  If you get a match, count it both as savings and income.

Since I get an employer match on my pension plan deductions (9% each). I'm already super close, running 60% where I dont count my pension contributions as income, or count the match at all. Too lazy to adjust my current calcuation. Will report back in a few months to see if I can beat it.
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aperture

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Re: 80% Savings Rate
« Reply #24 on: January 02, 2016, 07:58:00 AM »
I like this thread (and secretly following MonkeyJenga for the awesome non-goal directed super accomplishment, sarcasm and excellent grammar).  I discovered MMM in mid-June 2015 and interrupted our slow cruise to late retirement on around July 1.  (How the fuck did I not figure out the simple math of early retirement sooner?  All this to disclose that our 2015 year end saving rate for 2015 was 46% (wah wah waaaaaah). 

In 2016, we will move this rate up to 62% by continuing what we have done in the second half of 2015.  This will be a big accomplishment and I hope will incent my wife to continue making changes in how she spends.  I am planning to retire October 1, 2018 when I will be eligible for a pension.  If I left before that, I would be leaving the equivalent of $400K in savings behind. Thus I cannot really move up my timeline, but I can reduce waste and improve our nest egg going forward. 

We have both stopped spending that was easy and we now have to make harder choices going forward. My easy spending that has stopped included lunches at work, skiing, buying prepared meals at the grocery store,  purchasing espresso drinks and buying random crap.  I have replaced fantasizing about purchases with fantasizing about retirement. (Who doesn't want to be GoCurryCracker? Have you seen their travel plans for 2016?)

Right now I am considering changes in these two domains:

In 2016, the easiest hard choices relate to my hobby activities - photography and woodworking (I don't think I could have chosen two more expensive hobbies).  At this point, I have not bought any photo equipment in 8 months, but I took a woodworking class in the fall and made some supply purchases that were face-punch worthy.  Spending on these hobbies must stop in 2016 and I need to sell off unused equipment.  That will net about $3000 in savings vs. 2015. I would love to turn the woodworking into a mechanism for producing gifts for loved ones next year.  If I replaced purchased gifts with created ones, I could save an additional $250 next year.  I am going to commit to only spending $10 per month for my lightroom/photoshop license in 2016 - no equipment, no classes.

The hardest hard choice relates to my work commute.  Presently I drive a 19 mpg minivan back and forth to work.  It is 4 miles in each direction (head hung in shame). Reasons I have not switched to biking (1) price of gas is cheap (2) my bike is a heavy 1989 mountain bike (3) I like leaving work at lunch and coming home (note the extra miles I put on the car) (4) there is a mile-long hill on the way back from work (5) I was very ambivalent about bike purchases (including an e-bike) too many choices. (6) did I mention that I am lazy?  OK - once the weather gets warm again, I will try biking at least 3 days per week with my heavy stupid bike to try it out.  I will do this for two weeks and consider the results before further commitments.  At $0.55 per mile, the savings potential of biking to work would be ~$2200 per year, but the reality would be more like 1/2 of that because I have days where I have to drive and there is bad weather that I am not going to bike in.

There are lots of other hard decisions to make in 2016 - but these are the two that may have biggest impact and that I have 100% autonomy over.

Thanks for the topic - got me to look at year-end savings rate and set a goal (sort of) and consider outside the box opportunities for savings.

Self examination is exhausting.  It is time for breakfast and more coffee. Thanks -Ap.
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Re: 80% Savings Rate
« Reply #25 on: January 02, 2016, 08:35:09 AM »
Aperture, you have a 8-16 mile commute.  Good job!  No shame allowed.  Sure, ride your bike, but good job on the commute.  62% is impressive. Keep improving, of course, but you are doing great.

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RetiredAt63

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Re: 80% Savings Rate
« Reply #26 on: January 02, 2016, 09:30:23 AM »
Sure you could have!  Get a horse! Get a boat! Take up golf!

(all those "!"s - have I had too much caffeine?)

In 2016, the easiest hard choices relate to my hobby activities - photography and woodworking (I don't think I could have chosen two more expensive hobbies). 

On topic, I am retired, so no huge savings goals, but without trying I am still saving about 20% of net.  Some is really deferred spending (the joys of house ownership, big bucks are planned to be spent this summer), but still, it is effortless.  Once you have a lifestyle that meets your emotional needs without blowing the money, it carries over into retirement.
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Re: 80% Savings Rate
« Reply #27 on: January 06, 2016, 10:32:21 PM »
My crazy stretch goal for 2016 is an 80% savings rate. This would require ridiculous stuff that's not going to happen... UNLESS I MAKE IT HAPPEN. What radical changes would you need to implement to hit an 80% savings rate?

MonkeyJenga, you really got my thinking. I THINK I can make it happen for 2016. Thanks for the inspiration. Using back of the envelope calculations it didn't seem possible, but with a touch of tax optimization and some side income in 2016 from work done in 2015, it can definitely happen. I'm going to set up my retirement contributions which will receive all 80% of those savings!
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McStache

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Re: 80% Savings Rate
« Reply #28 on: January 07, 2016, 08:33:54 PM »
It'll be a stretch, but I think it's doable and I love a good challenge.  Last year I ended at 74%, so not so far off... kind of.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #29 on: January 09, 2016, 07:04:52 PM »
My crazy stretch goal for 2016 is an 80% savings rate. This would require ridiculous stuff that's not going to happen... UNLESS I MAKE IT HAPPEN. What radical changes would you need to implement to hit an 80% savings rate?

MonkeyJenga, you really got my thinking. I THINK I can make it happen for 2016. Thanks for the inspiration. Using back of the envelope calculations it didn't seem possible, but with a touch of tax optimization and some side income in 2016 from work done in 2015, it can definitely happen. I'm going to set up my retirement contributions which will receive all 80% of those savings!

That's great! And to think, you don't even have to sleep in your office.

It'll be a stretch, but I think it's doable and I love a good challenge.  Last year I ended at 74%, so not so far off... kind of.

Good luck! I was at 74% as well, not including gifts, but to get to 80% will require a big income boost.

MonkeyJenga

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Re: 80% Savings Rate
« Reply #30 on: January 09, 2016, 07:24:15 PM »
I like this thread (and secretly following MonkeyJenga for the awesome non-goal directed super accomplishment, sarcasm and excellent grammar).  I discovered MMM in mid-June 2015 and interrupted our slow cruise to late retirement on around July 1.  (How the fuck did I not figure out the simple math of early retirement sooner?  All this to disclose that our 2015 year end saving rate for 2015 was 46% (wah wah waaaaaah). 

In 2016, we will move this rate up to 62% by continuing what we have done in the second half of 2015.  This will be a big accomplishment and I hope will incent my wife to continue making changes in how she spends.  I am planning to retire October 1, 2018 when I will be eligible for a pension.  If I left before that, I would be leaving the equivalent of $400K in savings behind. Thus I cannot really move up my timeline, but I can reduce waste and improve our nest egg going forward. 

We have both stopped spending that was easy and we now have to make harder choices going forward. My easy spending that has stopped included lunches at work, skiing, buying prepared meals at the grocery store,  purchasing espresso drinks and buying random crap.  I have replaced fantasizing about purchases with fantasizing about retirement. (Who doesn't want to be GoCurryCracker? Have you seen their travel plans for 2016?)

Right now I am considering changes in these two domains:

In 2016, the easiest hard choices relate to my hobby activities - photography and woodworking (I don't think I could have chosen two more expensive hobbies).  At this point, I have not bought any photo equipment in 8 months, but I took a woodworking class in the fall and made some supply purchases that were face-punch worthy.  Spending on these hobbies must stop in 2016 and I need to sell off unused equipment.  That will net about $3000 in savings vs. 2015. I would love to turn the woodworking into a mechanism for producing gifts for loved ones next year.  If I replaced purchased gifts with created ones, I could save an additional $250 next year.  I am going to commit to only spending $10 per month for my lightroom/photoshop license in 2016 - no equipment, no classes.

The hardest hard choice relates to my work commute.  Presently I drive a 19 mpg minivan back and forth to work.  It is 4 miles in each direction (head hung in shame). Reasons I have not switched to biking (1) price of gas is cheap (2) my bike is a heavy 1989 mountain bike (3) I like leaving work at lunch and coming home (note the extra miles I put on the car) (4) there is a mile-long hill on the way back from work (5) I was very ambivalent about bike purchases (including an e-bike) too many choices. (6) did I mention that I am lazy?  OK - once the weather gets warm again, I will try biking at least 3 days per week with my heavy stupid bike to try it out.  I will do this for two weeks and consider the results before further commitments.  At $0.55 per mile, the savings potential of biking to work would be ~$2200 per year, but the reality would be more like 1/2 of that because I have days where I have to drive and there is bad weather that I am not going to bike in.

There are lots of other hard decisions to make in 2016 - but these are the two that may have biggest impact and that I have 100% autonomy over.

Thanks for the topic - got me to look at year-end savings rate and set a goal (sort of) and consider outside the box opportunities for savings.

Self examination is exhausting.  It is time for breakfast and more coffee. Thanks -Ap.

Good luck with the changes! We can go on this bike commuting journey together. Just think, if you can get a monthly 80% rate by the end of the year, you're all set for 2017.

I got into photography a couple of years ago, and I forced myself to do it as cheaply as possible. Refurbished DSLR, stuck with the kit lens despite an intense craving for more expensive upgrades, got a cheap Photoshop version, and resisted buying any other accessories except a Gorillapod. Even that was unnecessary. Maybe I should sell it this year.

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Re: 80% Savings Rate
« Reply #31 on: January 09, 2016, 08:06:42 PM »
The higher your income, the easier to achieve an 80% savings rate. Of course it is a great achievement. However for someone making 36000 year, to save 80% would require them to live off of only around 550 a month. Of course that would be awesome and some do it, but generally only if they are subsidized by someone else or the government.  If I had no mortgage, no car, no groceries, and no luxuries I am still not sure if I could live off so little.

Here is my hypothetical budget:
$210 taxes and insurance for house
$65 electric ( all- electric house with a well pump), never been cheaper
$45 animal feed (raising my own food)
$80 misc. Food stuffs to fill in the gaps.  Food for 4 adults
$136. Home maintenance. 
$4 Whatever else




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JZinCO

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Re: 80% Savings Rate
« Reply #32 on: January 10, 2016, 12:07:03 AM »
My crazy stretch goal for 2016 is an 80% savings rate. This would require ridiculous stuff that's not going to happen... UNLESS I MAKE IT HAPPEN. What radical changes would you need to implement to hit an 80% savings rate?

MonkeyJenga, you really got my thinking. I THINK I can make it happen for 2016. Thanks for the inspiration. Using back of the envelope calculations it didn't seem possible, but with a touch of tax optimization and some side income in 2016 from work done in 2015, it can definitely happen. I'm going to set up my retirement contributions which will receive all 80% of those savings!

That's great! And to think, you don't even have to sleep in your office.

Yeah alot of the workability of my plan is that I can whittle myself down to a 0% federal tax rate after the saver's credit and the boost from my employer's retirement contributions.
If I remember part way through the year I will post on here to let you know how it is going. It may not be sustainable over a span of several years but considering I spent about 14K in 2015 for all expenses, it surely could happen. If anything it will healthy to see what is possible.

Again, it is really inspiring to go from 'wow that guy is loony to 'wow that could be feasible'.
« Last Edit: January 10, 2016, 12:10:13 AM by JZinCO »
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MonkeyJenga

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Re: 80% Savings Rate
« Reply #33 on: January 10, 2016, 09:05:35 PM »
The higher your income, the easier to achieve an 80% savings rate.

Absolutely.

Quote
However for someone making 36000 year, to save 80% would require them to live off of only around 550 a month.

Yes, it would be very challenging to save 80% on that amount. But spending isn't the only thing that can change! My own options include some form of side income. This hypothetical person who wants to save 80% of their salary would need some combination of the following:

1) finding alternative housing (ex: local version of WWOOF'ing, living out of a car, living with family) and food (ex: dumpster diving, extreme couponing, mystery shopping)
2) increasing their salary (ex: side jobs, aggressively pursuing raises/promotions)
3) taking advantage of every tax savings possible to increase their take-home

My crazy stretch goal for 2016 is an 80% savings rate. This would require ridiculous stuff that's not going to happen... UNLESS I MAKE IT HAPPEN. What radical changes would you need to implement to hit an 80% savings rate?

MonkeyJenga, you really got my thinking. I THINK I can make it happen for 2016. Thanks for the inspiration. Using back of the envelope calculations it didn't seem possible, but with a touch of tax optimization and some side income in 2016 from work done in 2015, it can definitely happen. I'm going to set up my retirement contributions which will receive all 80% of those savings!

That's great! And to think, you don't even have to sleep in your office.

Yeah alot of the workability of my plan is that I can whittle myself down to a 0% federal tax rate after the saver's credit and the boost from my employer's retirement contributions.
If I remember part way through the year I will post on here to let you know how it is going. It may not be sustainable over a span of several years but considering I spent about 14K in 2015 for all expenses, it surely could happen. If anything it will healthy to see what is possible.

Again, it is really inspiring to go from 'wow that guy is loony to 'wow that could be feasible'.

I'll PM you if you forget. Keep you honest. :)

Glad I could help get you thinking! And hey, my first instance of mistaken gender identity. I happen to be a delicate lady-flower.

cautiouspessimist

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Re: 80% Savings Rate
« Reply #34 on: January 15, 2016, 10:50:35 AM »
Ok, I have to admit that my first thought was complainypantsing can'tpossiblydoitiveness. However, it did make me think. Thank you for that :)

Of course, after thinking about it, I still can't do it without some combination of living in a cardboard box and a massive payraise.

But, the question has also made me even more determined to save as much as possible without hating life. So, to answer the question 'what would it take', I'll go over some of the numbers that prevent me from doing it, and what steps I can/will take to get as close as possible.

1) My total annual PITI payments are approximately 27% of my after tax income. I do have a roomate, so I've taken that money into account as income. If I impute principal payments as savings, it's still (just) over 20% by itself. And, before anyone suggests that I bought too much house, I bought a house that is about as cheap as it gets for the area, I've recently had to take a 5K paycut, and I am likely overestimating the amount of tax I'll be paying given the amount of pre-tax savings I intend to do, so the percentage isn't too whacky, IMO.
2) Ok, well, that's probably reason enough, but I currently have somewhat of a clown commute that includes tolls which save at least 20-30 minutes per day. My office location has moved twice already, is about to move again, and there's no guarantee that I won't be changing jobs in the near future as well, so moving to be in bike/walk distance is not a good option.
3) While my work does have a 401k, they don't match, and I'm not eligible to contribute until the end of March at the earliest (I might not be able to contribute until the following pay period, so it might be 1 April)

Ok, so those are the biggest challenges. I mean, I just don't make enough money as a single person in a HCOL area in a career field with a relative amount of volatility.

Things to consider (with varying degrees of likelihood):
1) New housing situation. So, if I move near the new office that I know we're moving to, I could potentially save a ton of money as I wouldn't need to take toll roads, wouldn't need to drive as much (hopefully no commute), and would hopefully be able to find a place that would be cheaper (though even if it is it probably wouldn't be by much). Unfortunately, this would mean that I would probably lose my roomate as it would add a good 20-30 minutes to his commute. So, it would have to save quite a lot to make up for that.
2) New job. I've been looking, but I really need to step it up. I have a potential opportunity that would require an international move, but it also pays more and would be a fantastic opportunity, but I can't sit around waiting to hear back on it. So, I will be working on that for sure, but there are no guarantees.
3) I don't think I'm going to be able to quite max my 401k, but I hope to get as close as possible. I've just set up my HSA and plan on maxing that, and I will max my Roth (I know it's not optimal, but I'm really bad at conventional emergency funds, so this will help ameliorate some concerns).
4) I have a number of...let's call it hobby supply related items that I need to sell. That will help considerably as I should be able to get at least 3-5k from them. If I can get off my butt and do that it will make me much more comfortable with maxing my 401k contributions. Any leftover funds from sales can go in my (super tiny) taxable account.
5) Paying off my car will help significantly with cash flow. I plan on doing this by the time that I start contributing to my 401k, so that I will hopefully not have to feel too much of a pinch there.

Well, it's a start. So, thank you very much for helping to get my brain parts working.

JZinCO

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Re: 80% Savings Rate
« Reply #35 on: January 31, 2016, 02:23:23 PM »
Hope you guys are ready. I'm posting January numbers tomorrow and will be using this thread to diary my efforts.

edit: Oops used guy in a gender-neutral way again :)
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McStache

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Re: 80% Savings Rate
« Reply #36 on: January 31, 2016, 09:27:23 PM »
January      93%
------------------
Average     93%

A good start!  But also some things that artificially inflate the number like getting reimbursed for things from last month (inflated spending then, deflates it now) and I get a per diem from work when I travel that I don't use all of, but also don't count as income.

CanuckExpat

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Re: 80% Savings Rate
« Reply #37 on: February 01, 2016, 12:24:01 AM »
We tallied our January numbers and it looks like we killed it: 83% savings rate, 86% counting mortgage principal as savings.

BUT I think our numbers are artificially inflated too. Neither wife nor I are entirely sure what we are going to do in terms of staying employed, so we decided to front-load the hell out of our 401k's this year. All the extra tax deferred savings in one month makes our net income look a lot higher due to reduced withholding, hence higher savings rate with same expenses. In reality, we are "borrowing savings" from some future month where we will end up having more taxes withheld when we have no more 401k room.
« Last Edit: February 01, 2016, 09:05:38 PM by CanuckExpat »

2Birds1Stone

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Re: 80% Savings Rate
« Reply #38 on: February 01, 2016, 06:07:06 AM »
I'm off to a crappy start :(

44% for January

I'm not sure if 80% will be in the cards for me this year. Too much extracurricular travel planned for this year.

cats

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Re: 80% Savings Rate
« Reply #39 on: February 01, 2016, 08:11:39 AM »
Ours was somewhere around 80% last year (I need to go back and see how we accounted for the 2014 taxes that were paid in 2015, and then possibly also push the 2015 taxes we are about to pay back into 2015 and reduce income accordingly  Did our tax returns, they pushed us into the high 70s.  Wahhhh, poor us.).  I think the biggest contributors for us have been earning two relatively high salaries with no kids to support (this is about to end, so there goes our time in the 80% club), and being very hard-assed about looking for the lowest possible rent whenever we move (we've now moved twice since 2013)--basically, when it comes to finding a place to live we pretend we're still grad students. So I would recommend looking into getting a raise, or reducing your rent/housing expenses as the steps that are likely to pay off most over time.  When I look at our non-housing expenses, there are opportunities to cut back, but they are peanuts relative to the fact that we could easily be paying $200-1000 month more in rent than we currently are, for very little appreciable difference in quality of life. Also, most of the other stuff we could cut, we have to work at continuously month after month, so more effort and more opportunities to slack off.  In contrast, once we sign a lease, we don't have to work at saving money on rent for at least another 12 months.  The decision has been made for us.  It's a similar deal with looking for a higher paying job--you don't do it that often, but once you put in the effort, it pays off for quite a while.  I know for us, anytime we've gotten a raise in the past few years, the increase in take home pay has again been significantly more than we would save through cutting back on any of our non-housing expenses. 
« Last Edit: February 11, 2016, 09:18:50 AM by cats »

JZinCO

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Re: 80% Savings Rate
« Reply #40 on: February 01, 2016, 01:48:45 PM »
To avoid any funny, gimmicky, accounting I will present a simple cash flow statement. I will use pre-tax numbers because taxes are an outflow. I may switch to numbers at some point but will report everything as a percentage of total inflow. FYI, my base w-2 annual inflow is around 50K.
Nothing is counted unless it is realized in that month. So for example, leave time is accrued but not realized for January since I didn't take any leave so it is not counted. Similarly, my front-load to my IRA is just a transfer and was "savings" from a previous month.
Savings rate is computed as 1-(total outflow/total inflow) and 2016's months will be carried forward.
January
Inflow
w-2 income: 59%
401(a) employer contribution: 6%
hsa employer contribution: 8%
misc income (sales, 1099 work, etc): 27%
Outflow
expenses (rent, food, discretionary, insurance, taxes, etc): 14%
Savings rate 86%

« Last Edit: February 01, 2016, 10:01:56 PM by JZinCO »
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MonkeyJenga

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Re: 80% Savings Rate
« Reply #41 on: February 01, 2016, 07:16:53 PM »
I'm off to a crappy start :(

44% for January

I'm not sure if 80% will be in the cards for me this year. Too much extracurricular travel planned for this year.

Only here does someone consider a 44% savings rate as crappy. Hah. You can still push yourself to figure out additional efficiencies, even if you don't hit 80% on the nose!

cats: Impressive that you have already hit 80%! And congrats on the upcoming child.

JZinCO, CanuckExpat, and McStache: Way to go!

Well, it's a start. So, thank you very much for helping to get my brain parts working.

You're welcome, cautiouspessimist. I like forcing people to use their brain parts. :)

My own number is less impressive this month. I hit 70% even. I spent a couple hundred dollars hosting an annual party, but also received a couple hundred in gifts. The good news is I spent less and earned more than in January 2015. My yearly average will almost certainly be higher with extra paycheck months, a bonus, a small raise, and possible side income. I'm also going to get a bike this month, come hell or high water, which will reduce my transit spend.

2Birds1Stone

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Re: 80% Savings Rate
« Reply #42 on: February 01, 2016, 07:30:57 PM »
I'm off to a crappy start :(

44% for January

I'm not sure if 80% will be in the cards for me this year. Too much extracurricular travel planned for this year.

Only here does someone consider a 44% savings rate as crappy. Hah. You can still push yourself to figure out additional efficiencies, even if you don't hit 80% on the nose!

Hah! That does put things into perspective. Our "crappy" is a pipe dream for the masses.

I will certainly improve that %, In January I paid $1500 for a vacation that made up 55% of my spending for the month lol. Without the vacation I would have been @ 73-74% which I'll take for a non commission month.

We got this!

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Re: 80% Savings Rate
« Reply #43 on: February 01, 2016, 08:08:33 PM »
Only here does someone consider a 44% savings rate as crappy. Hah.

Completely agree lol :)
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Cookie78

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Re: 80% Savings Rate
« Reply #44 on: February 01, 2016, 08:57:57 PM »
With an extra mortgage payment and a rental vacant suite I only saved 66.4% this month.

FrugalFan

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Re: 80% Savings Rate
« Reply #45 on: February 02, 2016, 01:50:54 PM »
Wow, you guys are really inspiring! I can't even wrap my head around how people can have such high savings rates. We are currently at about 56%. But every incremental increase in savings rate takes a much larger proportional chunk out of our budget. I am not done optimizing yet, though many of the low-hanging fruit have already been taken care of. We currently have two kids in daycare. Our rate should increase to 62% once the oldest starts kindergarten in September. But I will try for incremental increases before then as well.

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Re: 80% Savings Rate
« Reply #46 on: February 02, 2016, 02:31:52 PM »
Wow, you guys are really inspiring! I can't even wrap my head around how people can have such high savings rates. We are currently at about 56%. But every incremental increase in savings rate takes a much larger proportional chunk out of our budget. I am not done optimizing yet, though many of the low-hanging fruit have already been taken care of. We currently have two kids in daycare. Our rate should increase to 62% once the oldest starts kindergarten in September. But I will try for incremental increases before then as well.
Well, as much as we like to disregard the role of circumstance here, some of it does stem from external factors. I'm a lazy shit by any standard, and I don't feel like I've even had to work that hard to get into the 70-75% range (see, I can't even be bothered to track it down to the tenth of a percent! WTF?) It mostly just took patience and incremental changes over time.
As DINKs in a LCOL, and with DW being a natural saver, we hit a high SR easily once I got into MMM. Numbers are useful but they don't tell the whole story.
Semi-FIREd December 2017, part-time entrepreneur, lover of puppies and saltwater.

JZinCO

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Re: 80% Savings Rate
« Reply #47 on: February 29, 2016, 09:27:02 AM »
To avoid any funny, gimmicky, accounting I will present a simple cash flow statement. I will use pre-tax numbers because taxes are an outflow. I may switch to numbers at some point but will report everything as a percentage of total inflow. FYI, my base w-2 annual inflow is around 50K.
Nothing is counted unless it is realized in that month. So for example, leave time is accrued but not realized for January since I didn't take any leave so it is not counted. Similarly, my front-load to my IRA is just a transfer and was "savings" from a previous month.
Savings rate is computed as 1-(total outflow/total inflow) and 2016's months will be carried forward.
January
Inflow
w-2 income: 59%
401(a) employer contribution: 6%
hsa employer contribution: 8%
misc income (sales, 1099 work, etc): 27%
Outflow
expenses (rent, food, discretionary, insurance, taxes, etc): 14%
Savings rate 86%

February
Inflow (source/% of total inflow)
w-2 income: 84%
401(a) employer contribution: 9%
Promotions/Bonuses for banks, credit cards etc: 6%
misc income (sales, 1099 work, etc): <1%
Outflow (source/% of total inflow)
rent: 11%
bills: 3%
grocieries: 2%
discretionary spending: 6%
Savings rate 79%

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I broke down spending categories a little more.
Alot more discretionary spending this month, mostly due to a weekend in Denver and going out to bars or restaurants every weekend. But my bills were down.
My raise will kick in next month which will be nice and let me achieve 80% SR without the need for pulling in sources of income outside of my w2.
« Last Edit: February 29, 2016, 10:44:26 AM by JZinCO »
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2Birds1Stone

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Re: 80% Savings Rate
« Reply #48 on: February 29, 2016, 10:22:43 AM »
I hit 80% SR for February which bring my YTD SR up to 66% :)


MonkeyJenga

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Re: 80% Savings Rate
« Reply #49 on: February 29, 2016, 10:36:01 AM »
Nicely done, 2B2S and JZinCO!

I'm at 73% for Feb. Spent $250 less than Feb last year.

I picked up a bike this weekend, so once the seat is fixed and I get comfortable commuting by bike, my transit expenses will inch down.

Also working on my group romance novels to bring in more cash. Hopefully that picks up once we develop more of a back catalog. We're putting out our second release this weekend, might be in the black within a couple months.