How much do you save as a percentage of your income?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:House is paid off. We live on about $60k per year. We save about $100k. Half of that is pre-tax (retirement accounts), the other half is after-tax.

We are similar to you. We live on $60K (after tax) and try to save $5K/mo. in addition to the 401k withdrawals which are about $25K... so roughly $75-80K/yr saved on a HHI of about $195K. House is paid off.

Similar here as well. We just recently paid our house off. Live on around $55k a year for spending/vacations/property taxes/annual insurance. Currently save about 40k a year in retirement and 70k a year in cash, total of 110k although I never think about retirement and regular savings combined.

However, frankly, I think our savings is excessive. The only reason it is so high right now is we were chucking at the house and that dropped off a few months ago. We need to make some decisions and meet with an advisor on how to proceed. I would like to spend maybe $20k a year on lifestyle increases (better/more frequent vacations, outsourcing some things, desired but not necessary home improvements), and maybe invest the other $50k.

There is no such thing as "excessive savings." Saving now (while you are still meeting your needs) = freedom and peace later. You can never be too free or too secure/peaceful.

Being happy with a less than luxurious lifestyle is the easiest way to being financially secure. Just like getting rid of clutter (where you live) is the cheapest way to a "bigger" house.

[Anonymous]

Typically we save 25% of our pre-tax income.

[Anonymous]

20% of gross, HHI around $350k. I don't count the employer contributions on 401ks and pensions in that figure. We have some rental properties too that will be paid off before retirement, and we will probably do some rehab of those before retirement to ensure a decent rental stream. Kids colleges are also fully funded.

[Anonymous]

HHI is around $100k. Just added up our savings and it's almost $30k per year, so 30 percent.

That's about 3k in regular savings, 2k in college savings and $25k in retirement.

[Anonymous]

Currently, we are saving 50% of our net. DH is doing well in his consulting business but your own business is prone to fluctuations. My job is stable. By the end of the year we plan to buy an investment property worth 400k - 500k (all cash), hopefully that will create another income stream. We are in early 40's, we did not save much in 30's, so now is the time. People who are disciplined about savings from early age are the ones I envy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

However, frankly, I think our savings is excessive. The only reason it is so high right now is we were chucking at the house and that dropped off a few months ago. We need to make some decisions and meet with an advisor on how to proceed. I would like to spend maybe $20k a year on lifestyle increases (better/more frequent vacations, outsourcing some things, desired but not necessary home improvements), and maybe invest the other $50k.

There is no such thing as "excessive savings." Saving now (while you are still meeting your needs) = freedom and peace later. You can never be too free or too secure/peaceful.

Being happy with a less than luxurious lifestyle is the easiest way to being financially secure. Just like getting rid of clutter (where you live) is the cheapest way to a "bigger" house.

Disagree. When you are making a consistent, good income and you are denying yourself things you would enjoy, when you are already saving enough money to support you later, is excessive. There is such a thing as money hoarding, and it does ugly things to people. You need a balance of saving, spending, and giving.

[Anonymous]

6% in company 401k with full matching (highest offered) pre-tax (so 12% of my gross salary).
Then, from net pay after taxes and other deductions, 4.25% in a Roth IRA, 4.25% in a liquid savings account.

[Anonymous]

40 percent

[Anonymous]

15% toward retirement. I make $106,000.

I already have emergency funds.

I only save about $5,000 for fun stuff or car repairs.

[Anonymous]

Anonymous wrote:
Theoretically 20%, but we recently had significant expenses, so... I should do a budget check.

OK, checked - it is 20% of gross.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

However, frankly, I think our savings is excessive. The only reason it is so high right now is we were chucking at the house and that dropped off a few months ago. We need to make some decisions and meet with an advisor on how to proceed. I would like to spend maybe $20k a year on lifestyle increases (better/more frequent vacations, outsourcing some things, desired but not necessary home improvements), and maybe invest the other $50k.

There is no such thing as "excessive savings." Saving now (while you are still meeting your needs) = freedom and peace later. You can never be too free or too secure/peaceful.

Being happy with a less than luxurious lifestyle is the easiest way to being financially secure. Just like getting rid of clutter (where you live) is the cheapest way to a "bigger" house.

Disagree. When you are making a consistent, good income and you are denying yourself things you would enjoy, when you are already saving enough money to support you later, is excessive. There is such a thing as money hoarding, and it does ugly things to people. You need a balance of saving, spending, and giving.

I don't have a problem with spending money on things you think you need or want and therefore saving less as a result.... but the assessment of what you want/need drives how much you spend... and therefore what you save.

The way it was phrased -- with an assessment that the savings was too much and therefore more spending should be done == that's what I have an issue with. Maybe PP didn't mean it that way. "Excessive savings" is like "excessive good luck" -- it just can't be too much. It IS possible, IMO, to have insufficient spending (be it for things one needs or simply for life enjoyment). Some people are too frugal -- but it's not that the saving is excessive, it's that the expenditures are too few!

[Anonymous]

0

[Anonymous]

0%

How the heck is everyone saving so much? ?

[Anonymous]

We save a third of gross. Hhi 125.

[Anonymous]

We save around 35% of gross income