Anonymous wrote:Why is this post named spenders all about saving?

+1

Why is this post named spenders all about saving?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Nope. We have a nice lifestyle, but who knows when the money train will stop. Because of that, we save a decent amount. No $100k cars for us. Make hay while the sun still shines.

What percentage of your HHI do you save (that you consider a decent amount as "savers")?

Usually about 30%. Sometimes more if a bonus is big.

Gross or net?

I save between 30 and 40% off of the net. We could save a lot more but from my perspective I am OK with it because

1. I have a detailed sheet with all of my accounts - contributions to date and earnings expectations that are conservative.

2. We have one kid (3.5) and next year I will have his 529 fully funded (at least as fully funded as I think it needs to be)

3. My wife and kid have insurance policies that will cover things if I am not around.

4. I always try to keep the plan and goal in mind. Currently 43, would love the option of being done at 55, no way I am working past 59 and I know what my 'number' will be every step of the way.

5. I justify in my mind that we both work very hard and it can't always be about 15 years from now. I don't want to wake up at 59 with a bunch of money but a lot of lost years when we could have had some fun.

6. I always run the numbers as to what I 'could' be saving and update that in my sheet just to see the impact. Normally I come to the conclusion that the extra dollars I save aren't moving the needle later.


Long story short, from my perspective - enjoy the new car, OP and do it without guilt. Just understand what it is costing you in the short and long run and make an educated decision.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Nope. We have a nice lifestyle, but who knows when the money train will stop. Because of that, we save a decent amount. No $100k cars for us. Make hay while the sun still shines.

What percentage of your HHI do you save (that you consider a decent amount as "savers")?

Usually about 30%. Sometimes more if a bonus is big.

Gross or net?

I spend freely.I just don't care for driving a new car, parties, super vacations and clothes( kidding right?).If I see something I want/need/care for I'll buy it, but nothing calls my name.
I do like traveling, but more stuff does nothing for me.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:HHI: $300k
Save about $40k a year give or take. Given our assets though our networth ones up by about $100k a year. We also are at peak spend right now: two young kids, nanny, private. Once some of that goes away in the coming years well free up a lot of cash flow.

Savings made up of about $17k 401k, $15k 401k match, and between 10k and 15k in "other" savings. Assets throw off another $30 to $50k a year or so, which is reinvested.

We spend on vacations. Cars I don't give a shit about and we just own em. Leasing is for car enthusiasts or idiots. At 34, we have about $1.4M net worth. We may be "over saving" a bit, but I figure that'll let us let off the gas more at 40, which seems like an OK trade off.

So family money and/or real estate got you to 1.4.

$50k a year "thrown off" by investments? That's $1mm at a 5% yield ... Must be nice to get a $1mm handout to start off. Too bad you couldn't use that golden ticket to get yourself into a job that pays enough to support yourself.

Such vitriol. I made nearly $200k a year as a 22 yo in ibanking. I've downshifted to something less awful but hardly think $300k is "not enough to support myself". It's a choice - I work 35 hours a week and get to take as much vacation as I like. Sure, I could be making $1m a year by now if I'd have stayed in the banking world but I'd also be working 80 hour weeks. Life is about choices - I chose my family over a yacht and I'm okay with that.

Not vitriol, just stating the obvious that you had family help to get to 1.4 at your age even if you started at 22 with 200k unless you had a really lucky real estate or securities play. It is much harder to save just on income, even a high one, an still have balance in your life.

I am defiantly a saver. I try and save 50% but I drive a nice car, take nice vacations and buy nice clothes. However I don't go overboard on the stuff. I don't have a huge wardrobe or 50 pairs of shoes. I like to have quality and not quantity, I hate clutter.