Poll

What's your savings rate?

Under or equal to 10%
29 (2.9%)
11-20%
50 (5%)
21-30%
108 (10.9%)
31-40%
144 (14.5%)
41-50%
183 (18.4%)
51-60%
198 (19.9%)
61-70%
156 (15.7%)
71-80%
89 (8.9%)
81-90%
26 (2.6%)
91% or above
12 (1.2%)

Total Members Voted: 930

Author Topic: Mustache poll: how much do you save?  (Read 212872 times)

Melissa

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Re: Mustache poll: how much do you save?
« Reply #50 on: February 22, 2013, 01:53:09 PM »
I used our saving rate from last year.  This year however it will be higher because I am now licensed and every dollar I make gets put into savings.....immeadiately.  I can't wait to see what it is at the end of the year!!

mm31

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Re: Mustache poll: how much do you save?
« Reply #51 on: February 22, 2013, 03:24:39 PM »
Last year, I saved around 37% of my gross income. This year, I'll be saving around 43% of my gross income. This includes  401k, IRA and normal savings.

Self-employed-swami

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Re: Mustache poll: how much do you save?
« Reply #52 on: March 01, 2013, 12:23:40 PM »
My saving's rate last month:

91%

Whoop whoop!  (I bought $20,000 worth of TFSA's, in addition to our RRSPs, other savings, and DH's pension and student loan payments).

Cecil

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Re: Mustache poll: how much do you save?
« Reply #53 on: March 07, 2013, 12:31:37 PM »
I used savings including forced pension contributions + employer matches + mortgage principal paydown, and net income after taxes but including the aforementioned forced pension contributions (since those are really income we're saving).

Over the last two years, we average $7100 + $650 pension/RRSP contribs income = $7750 per month.

Expenses were $5000 avg, leading to

$2750 savings + $600 mortgage paydown + $700 employer matching = $4050 total savings

For a savings rate of 52.3%. And that includes a $14k trip to Europe that we won't be repeating. Hoping to drive this up to 70% in 2013! :)

kkbmustang

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Re: Mustache poll: how much do you save?
« Reply #54 on: March 08, 2013, 09:44:22 PM »
Start reading thread.

See requires math.

Scroll, scroll, scroll.

Respond: I got nothin'.

cv

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Re: Mustache poll: how much do you save?
« Reply #55 on: May 28, 2013, 01:47:56 PM »
In addition to the 15% put away for regular retirement, I put away 60% after tax dollars. I would be saving 70% if I don't tithe.

Joet

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Re: Mustache poll: how much do you save?
« Reply #56 on: May 28, 2013, 07:12:54 PM »
firmly in the 21-30% category. Though this is % savings of gross, ignore taxes and I move a bit further up the chart. My taxes are roughly 27% of gross [payroll, fed, state, property]. Towards 40% if you'll ignore taxes and maybe a little bump depending on how you define 401k-match funds. Is that income or savings? Income that you saved?
« Last Edit: May 28, 2013, 07:30:06 PM by Joet »

EK

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Re: Mustache poll: how much do you save?
« Reply #57 on: May 28, 2013, 07:21:21 PM »
I'm sitting RIGHT on the cusp of hitting 50% savings (net, not gross).  We've only been trying at it since February, and it's up dramatically from our former 0% savings rate.  Much less impressive than many here, but I am really proud of how far we've come.  I see more and more places to trim as we go, and while theres a ceiling right now due to high work travel costs (a necessary evil for now...), there's still room to improve.  We should be looking at a positive net worth easily by the end of the year (no consumer debt left, but have some student loans).  MMM has been an enormous factor in our success so far.  The most remarkable thing is that cutting back this drastically from where we were hasn't felt sacrificial whatsoever.  Just took a change of perspective.

simonsez

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Re: Mustache poll: how much do you save?
« Reply #58 on: May 29, 2013, 07:03:22 AM »

....assuming mmm spending levels, "pretax" income is essentially equivalent to "post tax" income so no problem lumping them together.

What does an MMM spending level have to do with an income level?  I'll admit they are likely correlated on average, but in this forum more than anywhere I'd say the connection is diminished.  Maybe there should be additional polls linked with this one for household income and/or type of primary occupation.  My guess is that there higher proportion of above average earners/households here on this site than on aggregate in the US/Canada/whichever country you represent.  Thus, my guess would be that pretax income is not essentially equivalent to post tax income for many even given mmm spending levels and/or savings rates.  If I'm wrong, hopefully it is because the majority are on a different phase of the FI life cycle than I am (student loan debt repayment/house down payment saving mode) and I will be there someday myself where I don't require an above average salary.

dragoncar

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Re: Mustache poll: how much do you save?
« Reply #59 on: May 29, 2013, 01:41:25 PM »

....assuming mmm spending levels, "pretax" income is essentially equivalent to "post tax" income so no problem lumping them together.

What does an MMM spending level have to do with an income level? 

Nothing that I can see. I must have had a lapse of reasoning.

Insanity

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Re: Mustache poll: how much do you save?
« Reply #60 on: May 29, 2013, 01:43:24 PM »
Start reading thread.

See requires math.

Scroll, scroll, scroll.

Respond: I got nothin'.

Yes, I laughed out loud at this... A lot.

some guy

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Re: Mustache poll: how much do you save?
« Reply #61 on: June 07, 2013, 11:30:44 AM »
Im nearly at the 20% (18.62 actually WHILE paying down debt) mark and make right about 30k annually with a family of 3. We are leaning towards an enjoy life in general and the outdoors....you know the stuff that was here before we were and not the unnecessary crap that the unknowing believe is essential at this point. My thinking is if we can do this and comfortably in Florida, there is almost no reason for anyone else to not be able to.

Once debt is paid, I will add nearly another 10-15% quite comfortably living on very very little. The less we alot ourselves, the easier it seems to be adjust and just realize what really matters.

No dumpster diving, or other oddities either.

Albert

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Re: Mustache poll: how much do you save?
« Reply #62 on: June 07, 2013, 02:55:17 PM »
I save a bit less than 30% of my after tax income. I'm a single guy living in Switzerland and currently making about 120-130k US dollars per year (depending on currency rates). Total tax rate including the mandatory pension fund contributions on income this high is 28%. It would be shameful to have any debts other than a mortgage while earning so much (I don't), but honestly I should be able to save more than I do... As many of you probably know life here is quite a bit more expensive than in most of US, but not THAT much more expensive!

There is a lot to learn still ;)

FlorenceMcGillicutty

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Re: Mustache poll: how much do you save?
« Reply #63 on: June 07, 2013, 05:36:17 PM »
I never really calculated it, but I'm saving about 45% of net income. That includes the employer match for 401ks, so my personal rate is probably around 40%. I could do a lot better and I'm working on it. I don't really want to set a goal--I just want to optimize--but I'm hoping to get to saving a minimum of 20%/month of take home pay, not including bonuses.

johnsonran

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Re: Mustache poll: how much do you save?
« Reply #64 on: June 09, 2013, 06:26:42 PM »
I am amazed to happen upon a community of people that think very much like I do :P

I save approximately 75% of my income

Zero debt

30% 401K and Company Match (Pre Tax) = Percentage of Gross

45% (Post Tax) = Percentage of Net

Taxes are irrelevant since they do not propel me forward. I care only about the physical amount saved.

These discussions have really helped refine my position on many things.

Thank-you!
« Last Edit: June 09, 2013, 06:33:14 PM by johnsonran »

zephyr911

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Re: Mustache poll: how much do you save?
« Reply #65 on: September 22, 2015, 07:52:16 AM »
I'm laughing at my 18-months-ago self for thinking 50% was a dubious goal when I first found MMM (at least I gave it the old college try).
I'm closer to 60 now and my goal for the next year is 75. If I hit that, chances are I may never have a full-time job again after 38. Mwahahahaha

2Birds1Stone

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Re: Mustache poll: how much do you save?
« Reply #66 on: September 22, 2015, 09:14:02 AM »
I originally voted 50% in this poll, months later I get to change my vote to 70%!

How about dem apples?!?!

rockstache

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Re: Mustache poll: how much do you save?
« Reply #67 on: September 22, 2015, 09:25:52 AM »
Thanks for resurrecting this Zephyr!! I had originally voted in the under 10% group and now our savings rate is 67%! WHAT?! I'm stunned. And we still seriously have such a long way to go to be living a mustachian life.

zephyr911

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Re: Mustache poll: how much do you save?
« Reply #68 on: September 22, 2015, 09:31:42 AM »
Thanks for resurrecting this Zephyr!! I had originally voted in the under 10% group and now our savings rate is 67%! WHAT?! I'm stunned. And we still seriously have such a long way to go to be living a mustachian life.
YUP.

What surprises me now is not that I've cranked down the spending so much, but that even now, I look at my life and it's still an exploding volcano.

IOW, the challenge at this point is not finding savings, but time to implement fixes. So much low-hanging fruit, so little time

morning owl

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Re: Mustache poll: how much do you save?
« Reply #69 on: September 22, 2015, 09:35:03 AM »
That's really impressive, you guys who have upped your savings rate by so much! Wow! It must be nice to look back and see how far you've come.

2Birds1Stone

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Re: Mustache poll: how much do you save?
« Reply #70 on: September 23, 2015, 05:53:53 AM »
That's really impressive, you guys who have upped your savings rate by so much! Wow! It must be nice to look back and see how far you've come.

Always room for improvement! The shockingly simple math article REALLY opened my eyes. Going from 45-50% savings rate up to 70-75% literally saves me a DECADE of working!

If that isn't motivation to improve income and cut expenses where they don't improve my life or bring me joy.......I don't know what it.

jprince7827

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Re: Mustache poll: how much do you save?
« Reply #71 on: September 23, 2015, 06:49:08 AM »
I like to think of it this way:

At any point in time, if I were to clone myself and my wife, and they were born without any will to work, I could buy them an apartment just like mine and give them an allowance equal to my budget and they could live safely and soundly off of it for as long as I worked, without degrading my lifestyle or theirs in the slightest.

zephyr911

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Re: Mustache poll: how much do you save?
« Reply #72 on: September 23, 2015, 06:56:23 AM »
I like to think of it this way:

At any point in time, if I were to clone myself and my wife, and they were born without any will to work, I could buy them an apartment just like mine and give them an allowance equal to my budget and they could live safely and soundly off of it for as long as I worked, without degrading my lifestyle or theirs in the slightest.
As if you'd throw away all that life energy on a couple of worthless freeloaders... xD

Civex

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Re: Mustache poll: how much do you save?
« Reply #73 on: September 23, 2015, 10:05:21 AM »
59% of net
Until this last paycheck, I actually had more deposited into 401k/profit sharing than I had deposited into my checking/savings account this year. Hope to continue this trent next year, but instead of after tax contributions, tackle student loans.

~$42k-savings YTD (401k/Roth/Savings)
~$70k net YTD

happy

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Re: Mustache poll: how much do you save?
« Reply #74 on: September 26, 2015, 05:20:07 PM »
Since the thread has been revived I'll update. I posted 50% in Feb2013 and  am now up to 60%.
Anyone else want to play?

marty998

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Re: Mustache poll: how much do you save?
« Reply #75 on: September 26, 2015, 05:31:35 PM »
Can't work it out anymore :) Was 71-80%, now still around 80% but too hard to figure exactly.

don't know how to classify negative geared property investments...

Rosy

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Re: Mustache poll: how much do you save?
« Reply #76 on: September 26, 2015, 08:41:31 PM »
I voted in the 51 to 60% category which is the most popular vote:)

This Oct I hope to increase my % from 51 to maybe 53-56ish - not certain that I can reach a solid 60% or ever increase past 60%. For now I am ecstatic at the thought of going over 55% possibly starting in Oct.

Although it seems that whenever I reach a milestone in savings my mind leaps ahead, thinking up little schemes that might result in just a little more - but for now I'll shoot for 55 and see what happens.


ozbeach

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Re: Mustache poll: how much do you save?
« Reply #77 on: September 26, 2015, 09:56:43 PM »
72% of net here, averaged over four years (76% last year so I'm on the right trajectory!)

Net makes sense to me, as this is the money I have in my hand to spend so how much of that I save seems the most meaningful.

Interestingly, I tried to calculate out the gross figures and got 84%. I think this is probably skewed as I included the returns from my Superannuation (equivalent I think to a 401K) which are taxed much lower both on monies going in and on returns within the scheme.

Zoot

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Re: Mustache poll: how much do you save?
« Reply #78 on: September 27, 2015, 06:51:36 AM »
Calculating on a net basis, we save anywhere from about 60% to 70% monthly. 

Next year, though, I'm going to start calculating on a gross basis, looking at what percentage of GROSS is taken up by spending, saving, and paying taxes.  I'm still developing the spreadsheet tracking mechanism and have only plugged in some estimated numbers, but it looks like it will shape up as something like 20% spending, 55% saving, and 25% taxes.

(edited to fix syntax)
« Last Edit: September 27, 2015, 06:58:08 AM by ZootsTwin »

pachnik

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Re: Mustache poll: how much do you save?
« Reply #79 on: September 27, 2015, 07:41:46 AM »
I save about 35%.


Zoot

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Re: Mustache poll: how much do you save?
« Reply #80 on: April 08, 2016, 11:28:15 AM »
Calculating on a net basis, we save anywhere from about 60% to 70% monthly. 

Next year, though, I'm going to start calculating on a gross basis, looking at what percentage of GROSS is taken up by spending, saving, and paying taxes.  I'm still developing the spreadsheet tracking mechanism and have only plugged in some estimated numbers, but it looks like it will shape up as something like 20% spending, 55% saving, and 25% taxes.

Just wanted to chime back in to say that I actually DID this, and to share the results.

First three months show roughly the following:

Savings:  50%
Taxes:  25%
Spending:  25%

The "taxes" category includes Federal, state, FICA, Medicare, and property taxes; it will fluctuate throughout the year for the monthly figures (e.g., it'll be higher in October when we pay our county property tax; irregular side-hustle income will show a higher savings rate in the month the income was generated and stashed), but should average out for the yearly figure.  It's fun to watch it play out as I continue to track it.

Monthly NET savings rate still usually ends up somewhere in the 60-70% category.

Isn't this fun?  :)


forummm

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Re: Mustache poll: how much do you save?
« Reply #81 on: April 08, 2016, 01:19:37 PM »
This was a good excuse to go look at my spreadsheet and see what our savings rate was back in 2013. We've increased ours somewhat. We've dropped our spending from $35,800 to $27,500 during that time. Plus we had some smaller salary increases.

Spud

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Re: Mustache poll: how much do you save?
« Reply #82 on: April 08, 2016, 01:54:03 PM »
I just do what's described in the Shockingly Simple Math Behind Early Retirement ---> What is your savings rate as a percentage of your take home pay? Why do anything more complicated?

Answer for me - 60%.

arebelspy

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Re: Mustache poll: how much do you save?
« Reply #83 on: April 08, 2016, 01:58:31 PM »
What is your savings rate as a percentage of your take home pay? Why do anything more complicated?

Because sometimes it's more nuanced than that.

What if I put 18k in my 401k so my take home ends up being low?  Taking a percentage of my take home would be quite off.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
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BTDretire

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Re: Mustache poll: how much do you save?
« Reply #84 on: April 08, 2016, 04:30:47 PM »
I don't have a clue, we have never had a budget. Never put on paper income and/or out go.
 I did start tracking net worth once I figured out we were going to have one :-)
We just lived frugally from the first day of marriage. Invested in index mutual funds for
most of those years. It's been 34 years, and using our SS statements as the source for yearly
income data, we now have every dollar we ever earned. (Note; we had a small portion of our income that was not SS taxed in some years)
  That's a very high hurdle for someone retiring after 20 or 25 years. Not quite as hard to do
with 30 years of stock market growth.
 Keep saving, at some point you will think, wow, did we really do this!
I do every day.
                Just a poor boy that married the right woman.

Zaga

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Re: Mustache poll: how much do you save?
« Reply #85 on: April 08, 2016, 05:19:29 PM »
What is your savings rate as a percentage of your take home pay? Why do anything more complicated?

Because sometimes it's more nuanced than that.

What if I put 18k in my 401k so my take home ends up being low?  Taking a percentage of my take home would be quite off.
I include the 401-K in with my take home pay as well.  That way I'm accounting for it both as part of earnings and savings.

Not the company match though, that's just part of savings as it's impossible for it to be in my take home pay.

Yes, I know that if I didn't have money come out in the 401-K that our taxes would be higher, but I ignore that aspect for my calculation.  It's (total contributed to retirement + total debt principle reduction) / (paychecks + tax refund + 401-K employee contributions)

FIRE_Buckeye

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Re: Mustache poll: how much do you save?
« Reply #86 on: April 09, 2016, 07:48:32 AM »
70% on a net basis according to my spreadsheet (averaged over the last 12 months).
~60k annual salary, maxing 401k, maxing roth, putting 4-5k in my taxable account annually and using the amount leftover to save for a house.

Makes it easier having no kids or pets, minimal student loan debt (with a low interest rate) and sharing expenses with my girlfriend.
Been trending well north of 70% (closer to 80) so far this year, so hopefully I'll be able to make the jump to the next bracket higher here soon.
« Last Edit: April 09, 2016, 07:50:57 AM by FIRE_Buckeye »

SyZ

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Re: Mustache poll: how much do you save?
« Reply #87 on: April 10, 2016, 12:53:28 AM »
I puy 15% into 401(k)s and another 25% towards debt each month and still seem to be going nowhere quickly

Zoot

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Re: Mustache poll: how much do you save?
« Reply #88 on: April 10, 2016, 08:34:50 AM »
I puy 15% into 401(k)s and another 25% towards debt each month and still seem to be going nowhere quickly

In this situation, it sounds like tracking your net worth might be more motivating--your savings rate goes toward upping the "positive" side of your net worth, while the debt repayment goes toward upping the "negative" side ("upping" in the sense that it's getting less negative and heading toward zero).  If you track net worth, you get to see the effect of BOTH of those moves-in-the-right-direction.  :)  Give it a try--with 40% of your income going toward increasing net worth, I think you'll be surprised at what you see if you look at the effect of that over time!

Regarding net versus gross:  I like tracking savings rate as a percentage of gross because in some ways, it's even more radically simple than tracking net (which requires some gymnastics to handle IRA contributions, employer matches, mortgage paydown, and so on).  The gross savings rate makes it much simpler:  it ends up being a simple calculation of ALL inflows and ALL outflows (with taxes being a special case of "outflow"), and savings is what's left over after all the outflows are accounted for. 

The way you track it (or don't track it) depends on what kind of of question you're trying to answer.  I think once we FIRE, I'll develop a different set of tracking--then, it'll be about not running out of money versus how much we're stashing away.  Not sure what that'll look like, but it'll be fun to develop it when the time comes (yes, I actually enjoy playing with spreadsheets, so it's a delight rather than a chore!).  :)

SyZ

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Re: Mustache poll: how much do you save?
« Reply #89 on: April 10, 2016, 06:04:30 PM »
My net worth is at $8k but it's a completely worthless number to track anything. If I lost my job tomorrow, I'd need to find one within a few months or be homeless. My 401(k) isn't accessible for 30 years. My car is not liquid and only valuable in the sense that I get money if I sell it, but then need to replace it because it serves a function. I just put a $1,000 payment on my highest interest loan in addition to minimums on the rest, and that's my entire 2 week paycheck. The only actual effect is I go from owing $20.5k to owing $19.6k. 

Very annoying
« Last Edit: April 10, 2016, 06:09:50 PM by SyZ »

albireo13

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Re: Mustache poll: how much do you save?
« Reply #90 on: April 10, 2016, 06:38:35 PM »
I don't see how you can include debt paydown as savings.   That's a fallacy.
You're not saving, you're just reducing your losses.

I guess if you consider any income greater than -infinity then, it makes sense.


forummm

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Re: Mustache poll: how much do you save?
« Reply #91 on: April 10, 2016, 06:48:41 PM »
I don't see how you can include debt paydown as savings.   That's a fallacy.
You're not saving, you're just reducing your losses.

Feel free not to do that if it makes you feel better.

However, I will do that since it is increasing my net worth regardless of whether my paycheck goes to paying off my mortgage or to buying stocks. Debt is just a negative balance in an account from past spending. Moving that balance closer to zero is just as helpful as moving another account further positive.

FrugalFan

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Re: Mustache poll: how much do you save?
« Reply #92 on: April 10, 2016, 07:11:38 PM »
My net worth is at $8k but it's a completely worthless number to track anything. If I lost my job tomorrow, I'd need to find one within a few months or be homeless. My 401(k) isn't accessible for 30 years. My car is not liquid and only valuable in the sense that I get money if I sell it, but then need to replace it because it serves a function. I just put a $1,000 payment on my highest interest loan in addition to minimums on the rest, and that's my entire 2 week paycheck. The only actual effect is I go from owing $20.5k to owing $19.6k. 

Very annoying

But that 1 k debt payment increased your net worth by more than 10%! (And reduced your debt by 5%!). Tracking that would be motivating to me in your situation. Of course, getting out of debt and having access to more liquid assets will make you feel more secure. Is some of the debt at low enough interest that once you pay off the high interest you can start building a small emergency fund and investing more? Keep at it! It will pay off eventually, and sooner than you think.

SyZ

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Re: Mustache poll: how much do you save?
« Reply #93 on: April 10, 2016, 08:12:11 PM »
I'm staying around $5,000 in my checking account but want all the debt gone, just so I can look around at other investment options and boost my retirement savings to 40% +

I'm not understanding how my net worth is going up by paying down debt

Random example:

$10,000 in cash, $20,000 in debt, -$10,000 net worth

The person pays $3,000 towards debt

$7,000 in cash, $17,000 in debt, -$10,000 net worth

Nothing's changed

Expatriate

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Re: Mustache poll: how much do you save?
« Reply #94 on: April 11, 2016, 01:58:28 AM »
Approx 50%, based on (pre-tax savings + after-tax savings) / (after-tax income + pre-tax savings). So I add deductions from gross income (retirement only here) to both net savings and income.

forummm

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Re: Mustache poll: how much do you save?
« Reply #95 on: April 11, 2016, 08:55:34 AM »
I'm staying around $5,000 in my checking account but want all the debt gone, just so I can look around at other investment options and boost my retirement savings to 40% +

I'm not understanding how my net worth is going up by paying down debt

Random example:

$10,000 in cash, $20,000 in debt, -$10,000 net worth

The person pays $3,000 towards debt

$7,000 in cash, $17,000 in debt, -$10,000 net worth

Nothing's changed

Moving money from one account to another doesn't change net worth. But when you get your paycheck and don't spend it and instead pay off a loan with it, that does change net worth. So when I tally up my monthly savings I take my total receipts and subtract my total expenses (loan interest is an expense but principal is not) and that's my savings. It doesn't matter if 100% of that savings went to paying off debt, it's still savings.

TheAnonOne

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Re: Mustache poll: how much do you save?
« Reply #96 on: April 12, 2016, 02:33:31 PM »
I'm staying around $5,000 in my checking account but want all the debt gone, just so I can look around at other investment options and boost my retirement savings to 40% +

I'm not understanding how my net worth is going up by paying down debt

Random example:

$10,000 in cash +, $20,000 in debt, -$8,000 net worth

The person pays $3,000 towards debt

$7,000 in cash, $17,000 in debt, -$10,000 net worth

Nothing's changed

I was going to type out a very long edit to your post including paychecks but the net of the deal is that if you get a $10,000 paycheck and put $10,000 into investments/savings OR put that $10,000 into debt repayment, your net-worth will go up by $10,000 either way.

Your actually showing this in your example, but now add a $10,000 paycheck to each example, in both examples your net worth would have had gone from $-10k to $0

dude

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Re: Mustache poll: how much do you save?
« Reply #97 on: April 13, 2016, 08:21:50 AM »
These things are always tricky for me, because I have a pension to which my employer deposits a princely sum each payday.  It is, after all, deferred compensation, or basically, forced savings.

Without it = 50% of net
With it = 75% of net

P.S. -- I include mortgage principal, student loan principal, FICA tax and my retirement deduction (the portion I pay toward my pension) in savings.

SassyG

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Re: Mustache poll: how much do you save?
« Reply #98 on: December 22, 2016, 11:28:37 PM »
Gotta share this one... Just calculated my savings rate for the last qtr of 2016 = 85%!!!! On track for 25% total for 2016, which is pretty darn good considering I was unemployed the first half of the year!!

BTDretire

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Re: Mustache poll: how much do you save?
« Reply #99 on: December 23, 2016, 09:29:56 AM »
We don't keep track of savings, we don't have a budget, we earn ~ $80K.
I track my net worth of financial assets only. Between 2010 and 2015,
We averaged an increase of $150k per year. In about a week I will tally up 2016
to see how we did. I'm excited to see.
As much as I disagreed with Obama, his stock market sure was good to us.
My $2,500 healthcare reduction turned out to be a $4,200 increase.
Can't win them all!
  Merry Christmas or Festivus.