Author Topic: Invest 50% of my take home pay in 2015.  (Read 47169 times)

johnny847

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Re: Invest 50% of my take home pay in 2015.
« Reply #50 on: April 01, 2015, 08:58:58 AM »
I'm new to the forum, but I'd like to try this challenge. I have a question though. My partner's employer provides a defined benefit pension plan, and withholds 12% of partner's salary (pre-tax, tax-deductible) as a contribution. Does this count towards our 50%?

I'm of two minds. On the one hand, sure why not? It's money that's contributing directly towards our retirement income. I did some calculations based on their benefit formula vs. just investing and it looks like the income the pension provides would be approximately equivalent to us investing the money at 7% and then drawing it down at 4%, so that seems fine.

On the minus side, there's no way we can access any income from that money until partner turns 55, and I'd like to retire before then (he's 36 now). So our ER income would have to come from money we save not counting that 12%...

What do you think? Does the 12% count?

I'd say it does. Sure you can't access it until your partner turns 55, but you still need money to live on when your partner turns 55 anyway.

Cougar

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Re: Invest 50% of my take home pay in 2015.
« Reply #51 on: April 01, 2015, 09:14:39 AM »
I'm 56 this year, and am currently investing on track with 73% of my take-home pay this year. That's UP from 59% in 2014 after I discovered MMM, and made changes (mad scramble) to be able to do this at such a high level.

I had $169k socked away in my 401k at the beginning of 2014, and now have $219k + $9.5k in my new Vanguard Roth IRA.

I'm kicking myself all the way for not already having this inline 10 years ago though. I should be at least at $500k right now, and it's hard to get over the feelings that I "don't have enough time left" to pull it off. "If only's" regrets SUCK!

I WANT TO retire NOW! lol

thats impressive, 73% !

i am totally with you on wishing i started this sooner, but at my  current job 7 years now and if i wouldve done what i'm doing now; i'd have putting in over 250k and i cant think of one thing i did in the past 7 years that would be better than having and additional 200k sitting around to be closer to fire.

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Re: Invest 50% of my take home pay in 2015.
« Reply #52 on: April 01, 2015, 09:49:26 AM »
I'm new to the forum, but I'd like to try this challenge. I have a question though. My partner's employer provides a defined benefit pension plan, and withholds 12% of partner's salary (pre-tax, tax-deductible) as a contribution. Does this count towards our 50%?

I'm of two minds. On the one hand, sure why not? It's money that's contributing directly towards our retirement income. I did some calculations based on their benefit formula vs. just investing and it looks like the income the pension provides would be approximately equivalent to us investing the money at 7% and then drawing it down at 4%, so that seems fine.

On the minus side, there's no way we can access any income from that money until partner turns 55, and I'd like to retire before then (he's 36 now). So our ER income would have to come from money we save not counting that 12%...

What do you think? Does the 12% count?

It counts. You'll have to use something like FireCalc to figure out how to structure withdrawals with regards to a workable timeline though.

The largest problem I see with Defined Benefit Pensions these days is that legislation was just passed that allows pension funds that are in trouble to cut benefits to keep plans solvent. The law only applies to the multi-employer (usually Union) funds right now, but it's only a matter of time before they come after public sector pensions as well.

TonyPlush

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Re: Invest 50% of my take home pay in 2015.
« Reply #53 on: April 01, 2015, 10:41:14 AM »
This happens to be my yearly goal for the past two years, so I am definitely in. I've gotten close (42% in 2014) but still have work to do. I don't count automatic 5% with 5% matching 401K contributions though, as this isn't part of my take home paycheck.

johnny847

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Re: Invest 50% of my take home pay in 2015.
« Reply #54 on: April 01, 2015, 11:38:51 AM »
I don't count automatic 5% with 5% matching 401K contributions though, as this isn't part of my take home paycheck.

Why don't you? I would count your contribution, though maybe not your employer's contribution unless you also add that as part of your gross income.

Cookie78

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Re: Invest 50% of my take home pay in 2015.
« Reply #55 on: April 01, 2015, 12:15:47 PM »
I'm joining this challenge!

If I can include my portion of my pension contribution it might be too easy. I'll see if I can get 50% without including it.

Right now I feel stalled. I committed to a trip to Peru next month before I made my FI goals and I feel like I'm pouring so much money in to it right now with flights and treks. Also I chose to make a $3500+ contribution to my pension last month because of my leave of absence last year, which means I haven't put any money directly into Questrade investments since I opened the accounts in very early February. I know this is no big deal, but I want to watch the numbers go up!

Soon!

ThreadPacifist

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Re: Invest 50% of my take home pay in 2015.
« Reply #56 on: April 01, 2015, 01:42:18 PM »
Nice challenge! Last year I managed to save 75% of my take home pay (including 401k) before discovering MMM this year. Although with a baby on the way, perhaps it would be best to challenge myself to maintain that 75% rate for this year. Both the DW and I got raises at work this year, so it should be doable.

At your 75% savings rate, you're already WAY up the scale.  Be careful you don't have a "frugality burnout."  Starting from zero savings, that 75% savings rate (I think) will get you to FIRE in about 10 years.  And you already obviously have a head start.  Just keep it up; you are doing very, very well.

Good luck.

I appreciate the encouragement. Although I don't feel like I can have frugality burnout, I feel like I'm already living luxuriously.

Anyway, update for March. I managed a 93% savings rate! This is slightly cheating as we both got bonus checks and the opportunity to work overtime this month, but it's still really exciting. It should help us stay on track for that 75% overall goal for the year.

Jakobpunkt

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Re: Invest 50% of my take home pay in 2015.
« Reply #57 on: April 01, 2015, 03:23:47 PM »
I'm new to the forum, but I'd like to try this challenge. I have a question though. My partner's employer provides a defined benefit pension plan, and withholds 12% of partner's salary (pre-tax, tax-deductible) as a contribution. Does this count towards our 50%?

I'm of two minds. On the one hand, sure why not? It's money that's contributing directly towards our retirement income. I did some calculations based on their benefit formula vs. just investing and it looks like the income the pension provides would be approximately equivalent to us investing the money at 7% and then drawing it down at 4%, so that seems fine.

On the minus side, there's no way we can access any income from that money until partner turns 55, and I'd like to retire before then (he's 36 now). So our ER income would have to come from money we save not counting that 12%...

What do you think? Does the 12% count?

It counts. You'll have to use something like FireCalc to figure out how to structure withdrawals with regards to a workable timeline though.

The largest problem I see with Defined Benefit Pensions these days is that legislation was just passed that allows pension funds that are in trouble to cut benefits to keep plans solvent. The law only applies to the multi-employer (usually Union) funds right now, but it's only a matter of time before they come after public sector pensions as well.

bzzzzt, do you know if that legislation is provincial or federal? What jurisdictions does it cover?

bzzzt

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Re: Invest 50% of my take home pay in 2015.
« Reply #58 on: April 01, 2015, 06:36:56 PM »
bzzzzt, do you know if that legislation is provincial or federal? What jurisdictions does it cover?

Federal. Covers the entire country (US): http://www.pbgc.gov/about/factsheets/page/multiemployer-pension-reform-act-of-2014-faqs.html?CID=COLA01AEFEB1820152

Jakobpunkt

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Re: Invest 50% of my take home pay in 2015.
« Reply #59 on: April 01, 2015, 06:48:01 PM »
Ah. Not super relevant to me then, but thanks for the warning.

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Re: Invest 50% of my take home pay in 2015.
« Reply #60 on: April 02, 2015, 07:03:09 AM »
Nice challenge! Last year I managed to save 75% of my take home pay (including 401k) before discovering MMM this year. Although with a baby on the way, perhaps it would be best to challenge myself to maintain that 75% rate for this year. Both the DW and I got raises at work this year, so it should be doable.

At your 75% savings rate, you're already WAY up the scale.  Be careful you don't have a "frugality burnout."  Starting from zero savings, that 75% savings rate (I think) will get you to FIRE in about 10 years.  And you already obviously have a head start.  Just keep it up; you are doing very, very well.

Good luck.

I appreciate the encouragement. Although I don't feel like I can have frugality burnout, I feel like I'm already living luxuriously.

Anyway, update for March. I managed a 93% savings rate! This is slightly cheating as we both got bonus checks and the opportunity to work overtime this month, but it's still really exciting. It should help us stay on track for that 75% overall goal for the year.

I don't think counting in the bonuses is cheating.  Heck, I'm going to do the same myself with my credit card cash rewards and other odds and ends of what I'm going to classify as "budget offset" income.


Raislin

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Re: Invest 50% of my take home pay in 2015.
« Reply #61 on: April 02, 2015, 03:26:05 PM »
I'm in on this one, as that's the goal I've been working on before I discovered this blog/forum a little less than a month ago.  If I'm allowed to count loan payments in the savings rate, then I'm currently up to 55% per month.  I'll be starting a new job in the next couple of months that should boost that to 66%.

redbirdfan

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Re: Invest 50% of my take home pay in 2015.
« Reply #62 on: April 02, 2015, 09:48:47 PM »
I'm in!  I'm aiming for 100% due to the realization that I should NOT buy property in Seattle.  If I live off of the down payment money for the next two years I can invest 100% over that stretch.  Hopefully this challenge will keep from straying.  For some reason I can't stop myself from looking at property listings.     

Jakobpunkt

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Re: Invest 50% of my take home pay in 2015.
« Reply #63 on: April 03, 2015, 05:27:31 PM »
Redbirdfan, I'm confused. If you're living off your downpayment, doesn't that mean you're taking that money out of your savings? So don't you then need to subtract it from your income to get your savings rate?

Unless I'm missing something, this is exactly the same as spending part of your income and leaving the downpayment money invested...

redbirdfan

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Re: Invest 50% of my take home pay in 2015.
« Reply #64 on: April 03, 2015, 08:23:09 PM »
The down payment money is in cash so it isn't invested.  I don't see it as spending current income since the down payment money was earned over the last few years (i.e. not from this year's income).  Now that I've decided that 'renting and investing the difference' is the better play, I have too much cash that is losing ground to inflation.  Instead of doing a lump sum of the down payment money into the market and living off of my income, I'm just going to spend down the down payment money for my living expenses and invest my entire paycheck.  Since this challenge is about investing take home pay in 2015 I will use it to prevent me from being tempted to buy property here. 

In Seattle I've found the rental market to be more sane than the housing market because it is not influenced by the influx of foreign and investor money.  I was looking at small in-city studio and one bedroom condos that I would live in until FI and then rent out after FIRE to supplement retirement income.  Those are/were the same properties that are being scooped up within days by investors in all cash deals after bidding wars.  No thanks.  This challenge is what I needed to stay rational.  I'm in!     

McStache

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Re: Invest 50% of my take home pay in 2015.
« Reply #65 on: April 03, 2015, 09:58:11 PM »
I'm in.  Last year I landed at 61% and this year I am aiming to be at >70% and stretch >75%.  Currently I'm sitting at 72%, so 75% looks possible especially as my income should be higher for the rest of the year.

Jakobpunkt

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Re: Invest 50% of my take home pay in 2015.
« Reply #66 on: April 04, 2015, 10:50:29 AM »
The down payment money is in cash so it isn't invested.  I don't see it as spending current income since the down payment money was earned over the last few years (i.e. not from this year's income).  Now that I've decided that 'renting and investing the  difference' is the better play, I have too much cash that is losing ground to inflation.  Instead of doing a lump sum of the down payment money into the market and living off of my income, I'm just going to spend down the down payment money for my living expenses and invest my entire paycheck.  Since this challenge is about investing take home pay in 2015 I will use it to prevent me from being tempted to buy property here. 

In Seattle I've found the rental market to be more sane than the housing market because it is not influenced by the influx of foreign and investor money.  I was looking at small in-city studio and one bedroom condos that I would live in until FI and then rent out after FIRE to supplement retirement income.  Those are/were the same properties that are being scooped up within days by investors in all cash deals after bidding wars.  No thanks.  This challenge is what I needed to stay rational.  I'm in!   

This makes no sense. Money is fungible. Whether you're spending money out of your chequing account or out of an investment account or out of an envelope under your mattress makes no difference. The calculation for savings rate is still (income - expenses)/income.  The fact that you didn't previously invest those savings, for whatever reason, makes no difference. I also have more than a year's worth of expenses currently sitting in a cash account from previous savings, and I plan to transfer that money to an investment account quite soon, but where I'm storing my existing savings doesn't change the (income - expenses)/income formula.

redbirdfan

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Re: Invest 50% of my take home pay in 2015.
« Reply #67 on: April 04, 2015, 11:51:57 AM »
Jakob,

Your point is well taken.  I would agree with you if the challenge had been couched in terms of overall savings rate.  However, it was phrased as saving a percentage of take home pay.  I will be saving 100% of my take home pay. The OP put out a challenge that several people have accepted.  I don't want to hijack the thread. Let's just agree to disagree and let the thread return to its original purpose.     

Jakobpunkt

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Re: Invest 50% of my take home pay in 2015.
« Reply #68 on: April 05, 2015, 04:06:56 PM »
Okay redbirdfan, you do you.

Anyway, to return to the challenge. I've totted up our savings rate so far this year, and it's only 39%. And that's going to go down because I'm going to be taking some money out of savings to buy a badly-needed new computer. But I'm optimistic that we can make it work for three reasons:

1) I've been between contracts for nine weeks, so I haven't had any money coming in. My new contract (which will be 12 months long) should start in a couple of weeks at which point our joint income should go way up with no increase in expenses

2) We're due a fairly substantial tax refund, all of which will go in to savings

3) The plan is to sell our silly, overly expensive car this year and not replace it. That will also all go into either (car) loan repayment or investments.

FIRE me

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Re: Invest 50% of my take home pay in 2015.
« Reply #69 on: April 06, 2015, 02:27:46 AM »

To get through this you have to invest 50% of your take home pay in 2015.


Challenge accepted.

$24,000   401k max out (with catch up)
$  6,500    IRA max out (with catch up)
----------
$30,500    Total.     <--- should be just about 50% of my gross, not take home.


WerKater

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Re: Invest 50% of my take home pay in 2015.
« Reply #70 on: April 06, 2015, 10:41:02 AM »

To get through this you have to invest 50% of your take home pay in 2015.


I am in, too. However, my goal will be 70%.
Here are the numbers so far (somewhat inflated by february where I got all my overtime from 2014 paid out). I have to do the investing manually so there can be some fluctuations from month to month if I am a few days late, but these should average out over time.

Month Income*Invested Ratio
Jan2906 1702 59%
Feb4798 3702 77%
Mar2862 2702 94%
Total105668107 77%


* Sum of all after tax incomes (almost all of that is from my full-time job)


Cecil

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Re: Invest 50% of my take home pay in 2015.
« Reply #71 on: April 07, 2015, 12:07:32 AM »
I'm also in with a 70% goal. So far this year:

Jan - $4393 / $7006 = 63%
Feb - $5509 / $7768 = 71%
Mar - $7573 / $10237 = 74%

Total - $17475 / $25011 = 69.8%

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Re: Invest 50% of my take home pay in 2015.
« Reply #72 on: April 08, 2015, 09:26:00 AM »
Wow everyone has some big savings plans it seems.  If you are saving 50% of your take home pay, depending on how much you make, you will be in pretty good shape with in 5-10years...

Starting from zero savings, a 50% savings rate will get you to FIRE in 15 years.

mandy_2002

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Re: Invest 50% of my take home pay in 2015.
« Reply #73 on: April 08, 2015, 03:58:19 PM »
I'm in!  I was at 49% last year, so I'll set my goal at 55% for this year.

Thanks for the challenge!

My monthly numbers:
January:  53.7%
February: 39.4%         (Skewed saving for ESPP purchase in March, will soon be out of corporate stock and in Roth IRA)
March:     97.2%         (Skewed because of bonus, ESPP, and extra corporate contribution)

YTD:  74.0%

I think I may need to revise my goal.  Since March really was a crazy month, I'll change it to 65%.

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Re: Invest 50% of my take home pay in 2015.
« Reply #74 on: April 17, 2015, 04:09:52 PM »
Wow everyone has some big savings plans it seems.  If you are saving 50% of your take home pay, depending on how much you make, you will be in pretty good shape with in 5-10years...

Starting from zero savings, a 50% savings rate will get you to FIRE in 15 years.

I just turned 30, so I hope to fire at age 45. My current saving rate is 41%. Goal is to achieve 50% this year, hopefully before the end of Summer.

linuxhero

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Re: Invest 50% of my take home pay in 2015.
« Reply #75 on: April 20, 2015, 11:28:01 AM »
Been a lurker for a long time, but finally decided to get in on this challenge.

My numbers so far this year (does not include mortgage principal) seem a bit ridiculous because most of the money is taken out pre-tax:

January: 67%
February: 82%
March: 179% (This makes no sense, I saved more than my take home because of a bonus and 44% 401K deferral rate.  Is there a better way to calculate this?)

The plan this year is to max out my 401K, my Roth IRA, wife's Traditional IRA, my HSA as well as contributing $16k to my after tax 401K (to be rolled over to my Roth IRA).

Looking forward to meeting this challenge.

mandy_2002

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Re: Invest 50% of my take home pay in 2015.
« Reply #76 on: April 20, 2015, 12:08:33 PM »

March: 179% (This makes no sense, I saved more than my take home because of a bonus and 44% 401K deferral rate.  Is there a better way to calculate this?)


Did you include the bonus in your take-home?  I got a pretty nice bonus last month and put it in savings right away.  So I included it in the numerator and denominator; I also include any pre-tax savings in the denominator.  Other's may not do this; that would definitely make the numbers look far better. 

Example math, $4000 net pay, $1500 to 401k, $5000 bonus that you put into savings -> (1500+5000)/(4000+1500+5000) = 62% saving rate
Without the bonus, this would be (1500)/(1500+4000) =27.3%

(Edited because original numbers were assuming the 401k max was $18500; not sure where I got that from.)
« Last Edit: April 20, 2015, 02:30:51 PM by mandy_2002 »

linuxhero

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Re: Invest 50% of my take home pay in 2015.
« Reply #77 on: April 20, 2015, 12:19:03 PM »

March: 179% (This makes no sense, I saved more than my take home because of a bonus and 44% 401K deferral rate.  Is there a better way to calculate this?)


Did you include the bonus in your take-home?  I got a pretty nice bonus last month and put it in savings right away.  So I included it in the numerator and denominator; I also include any pre-tax savings in the denominator.  Other's may not do this; that would definitely make the numbers look far better. 

Example math, $4000 net pay, $1542 to 401k, $5000 bonus that you put into savings -> (1542+5000)/(4000+1542+5000) = 62% saving rate
Without the bonus, this would be (1542)/(1542+4000) =27.8%


You are right, I for some reason did not calculate things correctly (I did not re-add in the 401K contributions to the take home pay).

Here are my corrected numbers for the year thus far (these numbers now _do_ include my mortgage principal):

January: 54%
February: 56%
March: 96%

Sorry for the confusion. :(

WerKater

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Re: Invest 50% of my take home pay in 2015.
« Reply #78 on: April 28, 2015, 11:29:52 AM »
To get through this you have to invest 50% of your take home pay in 2015.

April update. Remember, my goal is 70%.

Month IncomeInvested Ratio
Jan2906 1702 59%
Feb4798 3702 77%
Mar2862 2702 94%
Apr3968 3030 76%
Total1453411137 77%

« Last Edit: April 29, 2015, 11:26:43 PM by WerKater »

bzzzt

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Re: Invest 50% of my take home pay in 2015.
« Reply #79 on: April 29, 2015, 01:12:51 PM »
*phew* Just squeaked in there due to some overtime. Sitting @ 50.7% for the year. Should be easier to do well going forward since most of the large one-time costs are done for the year and only have one bi-annual property tax payment left.

WerKater

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Re: Invest 50% of my take home pay in 2015.
« Reply #80 on: April 30, 2015, 12:36:17 AM »
Sofar:
2015-01 - 94.04%   
2015-02 - 360.96%   
2015-03 - 21.31%   
2015-04 - 11.43%   
2015-05 - 65.32%

⌀ 55.78%

Had a few large expenses so far this year which has put a dent into things. Will work on improving on that.
How did you manage to invest 360% of your income in february? And have you noticed that it's not may yet? ;-)

mandy_2002

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Re: Invest 50% of my take home pay in 2015.
« Reply #81 on: April 30, 2015, 10:56:34 AM »
I understand cash savings in a checking/normal bank account (money you could have save earlier, but waited for whatever reason) pushing a number above 100%.  However, when I get a bonus, it's included in my income portion as well, since it was part of my monthly take home pay (it's also on your W-2 as income, correct?).  In May, I'll get three paycheck because of my bi-weekly pay, this will also be included in my take home pay.  Monthly income is not a constant number. 

Just trying to keep you honest for your goal. 

2Birds1Stone

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Re: Invest 50% of my take home pay in 2015.
« Reply #82 on: April 30, 2015, 11:28:27 AM »
4 months into the year I have invested 65.6% of my pay!


maco

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Re: Invest 50% of my take home pay in 2015.
« Reply #83 on: April 30, 2015, 02:00:35 PM »
I'm new here, but I saw this thread, so I figured I'd try finally doing the math. It looks like I am so far on track to save this year 35% of what I made last year, with the caveat that this year's income will be significantly less than last year's, so I think it'll be like 49% in actuality. (I got 4 years of monthly stock vests when I got hired. My 4 year workaversary was in January. Without $2000 in stocks each month, the income goes way down)

Though, since I'm new, I did have a loan that happened earlier this year (unplanned new car...old was totaled), and I'm not sure how that factors into this equation, so I didn't subtract the balance or include the payment. It's 0%, so principal versus interest doesn't really apply. So I'm just treating the payment on it as regular spending.

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Re: Invest 50% of my take home pay in 2015.
« Reply #84 on: April 30, 2015, 07:40:33 PM »
It's the end of the month, so time for another update. Last month continued the overtime, but that well has dried up for the rest of the year. Insurance for the car and needing to buy a new computer added to the expenses for this month, but I managed to reuse some old computer parts to build a nice one for $550. Saving/investment Percentage for the month of April was 76.26%. Total Saving/investing Percentage for the year is 80%. Still on track, but with a daughter due in late August, I might be in danger of going under the 75% goal. Guess we'll find out in December.

McStache

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Re: Invest 50% of my take home pay in 2015.
« Reply #85 on: April 30, 2015, 08:41:39 PM »
I'm in.  Last year I landed at 61% and this year I am aiming to be at >70% and stretch >75%.  Currently I'm sitting at 72%, so 75% looks possible especially as my income should be higher for the rest of the year.

January      66%
February     73%
March         78%
April           80%
-------------------------
Average      75%

Sitting right at my stretch goal right now.  Hopefully I can sustain it for the year.

linuxhero

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Re: Invest 50% of my take home pay in 2015.
« Reply #86 on: May 04, 2015, 08:28:11 AM »
Update for the year to date:

January: 54%
February: 56%
March: 96%
April: 64%

The investments are in:
After tax 401K contributions and company match: $19k
My Roth IRA: $3.3k
Wife's Traditional IRA: $3.3k
HSA: $2.2k


Hey It's Me

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Re: Invest 50% of my take home pay in 2015.
« Reply #87 on: May 04, 2015, 10:21:23 PM »
Okay, there seems to be some confusion here about bonuses and calculating savings rate:

General things to keep in mind:
  • Whether you're basing your savings rate off of your net or your gross pay, bonuses are added to both the denominator and the numerator... (Assuming you saved your bonus.)
  • If you're using your net income, your income is net of taxes, not net of taxes, 401K, deductions, etc. In other words, if you counted 401K savings in the numerator, that contribution also belongs in the denominator.
  • An easier way to calculate gross savings rate is: 1 - ((taxes + spending)/gross income)

Uncle Scrooge

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Re: Invest 50% of my take home pay in 2015.
« Reply #88 on: May 12, 2015, 11:32:23 AM »
This sounds like a lot of fun! I'm a bit late to the party but I went ahead and did all my calculations:

January:    47.56%
February:  30.95%
March:       69.22%
April:          44.07%

forummm

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Re: Invest 50% of my take home pay in 2015.
« Reply #89 on: May 12, 2015, 03:49:32 PM »
We've been doing this for years. And still eat great, have a nice house, and take vacations.

Hey It's Me

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Re: Invest 50% of my take home pay in 2015.
« Reply #90 on: May 12, 2015, 08:22:19 PM »
I'm currently at 123% of my gross income saved so far.

Obviously I'm "cheating" since I have a side job and 401K matching/ESPP that I didn't include in the denominator, but my goal was to save my entire gross salary (pre-tax) from my day job - roughly $42,000 - and live off of my side gigs in 2015. So far, so good.

peterpatch

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Re: Invest 50% of my take home pay in 2015.
« Reply #91 on: May 12, 2015, 08:27:37 PM »
I had a lot of weird expenses in April that I am expensing through work so I am just going to net those out. I also went on vacation which was expensive so April is basically a wash with a 15% savings rate. Totally weak I know, but I am hoping to close the gap in May/June so I'll be at 50% for the first half of the year.

Money Badger

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Re: Invest 50% of my take home pay in 2015.
« Reply #92 on: May 13, 2015, 09:21:41 PM »
At 25% annual savings rate already after maxing 401K, kids 529s, mortgage principal prepays...   Goal is to get to 50% rate to beat down the mortgage further...   My "job" cash flow margin is tiny but investments are the key...    Depends on passive income and a June annual bonus  in the $20knrange to find $37,500 this year.    Literally, I am throwing the spare change (rolled into usual $denominations) and the kitchen sink at this!

linuxhero

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Re: Invest 50% of my take home pay in 2015.
« Reply #93 on: May 22, 2015, 09:04:55 AM »
Update for the year to date:

January: 54%
February: 56%
March: 96%
April: 64%
May: 58%
----------------
Average: 65%

The investments contributed year to date are in:
Before tax 401K contributions and company match: $1.9k
My Roth IRA: $21.2k
Wife's Traditional IRA: $4.7k
HSA: $2.7k

WerKater

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Re: Invest 50% of my take home pay in 2015.
« Reply #94 on: May 24, 2015, 06:05:16 AM »
To get through this you have to invest 50% of your take home pay in 2015.

May update. Remember, my goal is 70%.
The May numbers are inflated because I screwed up back in January. I paid for the hotel we stayed in during a vacation in May. Then I immediately forgot about it and proceeded to keep some money around that I earmarked for this. I finally invested that money now.

Month IncomeInvested Ratio
Jan2906 1702 59%
Feb4798 3702 77%
Mar2862 2702 94%
Apr3968 3030 76%
May2842 2550 90%
Total1737613687 79%

muckety_muck

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Re: Invest 50% of my take home pay in 2015.
« Reply #95 on: May 29, 2015, 10:14:03 PM »
This will be a big challenge for us, but I plan to make it happen. Is it safe to assume the following count:

-TSP/401k/403b
-Roth IRA
-Vanguard taxable
-Coverdell ESA/529
-HSA

What about principal payoff on the mortgage? I guess that is more like "saving" than investing. hmmm. a challenge indeed. accepted!

WerKater

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Re: Invest 50% of my take home pay in 2015.
« Reply #96 on: May 30, 2015, 03:34:20 AM »
What about principal payoff on the mortgage? I guess that is more like "saving" than investing. hmmm. a challenge indeed. accepted!
I would count the principal payoff. Your house is a kind of investment because it will save you rent. Paying off a mortgage is basically the same thing as buliding up an investment whose capital returns you would then use to finance your rent.

mandy_2002

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Re: Invest 50% of my take home pay in 2015.
« Reply #97 on: May 31, 2015, 04:32:22 PM »
This will be a big challenge for us, but I plan to make it happen. Is it safe to assume the following count:

-TSP/401k/403b
-Roth IRA
-Vanguard taxable
-Coverdell ESA/529
-HSA

What about principal payoff on the mortgage? I guess that is more like "saving" than investing. hmmm. a challenge indeed. accepted!

I would include all of the above, and agree with WerKater.  Make sure that you add back the 401k/hsa/other automatic withdrawals to your after-tax income so that your savings number isn't padded with money you "never really earned."

mandy_2002

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Re: Invest 50% of my take home pay in 2015.
« Reply #98 on: May 31, 2015, 05:10:42 PM »
My monthly numbers:
January:  53.7%
February: 39.4%       
March:     97.2%         (Feb lack of savings went into March)
April:       58.3%
May:        93.7%         (3 paycheck month, with residual cash moved into savings)

YTD:  76.0%        (Not the same as the average of above because of variations in pay)

Year end goal:  65%

Hey It's Me

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Re: Invest 50% of my take home pay in 2015.
« Reply #99 on: June 01, 2015, 04:08:38 AM »
I've used a weird benchmark, which is 100% of my gross salary saved/invested (and living/paying taxes off of side gigs). So far this year:

January: 35%
February: 95.7%
March: 132%
April: 92.6%
March: 127.7%
 
YTD: 118% of gross salary saved.