Savings %

[46Tbird]

I have 6% into 401k and 10% into a savings account before I even get a chance to spend it.

After that, it depends. Sometimes I want to F around with my r/c boat or my old cars. Sometimes I need new clothes. Sometimes I have an unplanned expense. I usually spend about 80% of my remaining check, the rest just sits in the checking account. Here lately I've been spending more since the bills are a little higher and I have two vacations right in a row.

[Leah]

This sounds strangely, like, having a family. This is how it goes for us all the time. There is always a bill that wipes out some part of the savings if any some months.

We should have a "how much are you NOT saving" thread for us.....lol

Sad, but true.

[Denny]

Amount saved is a decent yardstick but you should go beyond that and ask yourself how much your net worth increases every month. Net worth being the value of everything you own minus what you owe in debt.

Some are still staring at this post. LOL!!!

Let's not get into it on here. Not like it'll have many honest posts anyway.

[Kenny_Stang]

About 30%, 15% goes into retirement and the other 15% goes into a regular savings account.

It will take a huge hit though when the divorce is finalized next week.

[thesource]

I try to put back a $100 a week in my IRA and a little here and there when I have it. Lately business has been slow so the flow of cash isn't what it usually is.

[Ruffdaddy]

I'm surprised at how many people don't know what the percent sign is

[mustangguy289]

I save 150%. True Story

[sc281]

Regardless of how big your "percentage" is, Just find a minimum amount of money needed to live in relative comfort. As you progress in your career,put the excess money in retirement and savings.

Done.


No need for the dick measuring contest....






But since we are measuring... 26% in 401k until I max it out. Get up to 3k in Ira, and 10% in savings.

Schweeeeeen!!

[Cooter]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

[white trash wagon]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

Excellent decision, I reached the same conclusion years ago. My next best decision was was finding a frugal, Jewish nurse for my next wife!

[slow99]

Regardless of how big your "percentage" is, Just find a minimum amount of money needed to live in relative comfort. As you progress in your career,put the excess money in retirement and savings.

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

[FreightTrain]

also... being intelligent poor white trash, I realized long ago that having children was a guarantee that I would never retire.

so I got a dog

Trying to sell the wife on the same idea. Got the dog and even offered to get another dog. Still isn't working.

[Denny]

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

I'm fucked... I started WAY too late, but I'm trying to catch up. I guess it also depends on your age at the time of retirement too since someone might be burning through it longer (not to mention those that live longer). It's thoughts like that, that make me think there will never be enough to put me in a comfort zone. I will never feel caught up, let alone ahead.

That's an awesome breakdown, though. Thanks Jody!

[FreightTrain]

Sound advice. Couple other good posts in here as well. I've edited my post...wasn't my objective to come across like a douche - but an unintended consequence.

Going forward, it's very true that most people don't have any clue how much they should be saving to reach their goals. What disturbs me is that many people don't have an idea how to even think about it. I posted this on the old board, maybe it's appropriate for this thread as well:

Here's something to get you thinking about retirement goals and how to get there (and why it's appropriate to think in $/cash flow terms instead of %).

These calculations can be done pretty easily on any financial calculator that performs time value of money calculations.

A. Calculate your retirement needs in first year of retirement (present dollars).

Use an annual inflation adjustment of 2.5% (or 3.5 or 5, just using 2.5% to show the math). Let's say you are currently 30 years old and plan to retire at age 60. You estimate that you will earn 10% a year on your investments until retirement. During retirement, you expect to earn 6% annually on your investments. You anticipate a 25% tax rate during retirement.

1. Say your annual need post-retirement is $60,000 in today's dollars.
2. $60,000 with a 2.5% inflation rate for 30 years will be $125,854.
3. Considering taxes, $125,854/(1-.25) = $167,805.

B. Calculate how much you need at retirement.

1. $167,805/(.06 - .025) = $4,794,429

C. Annual contribution to get you there.

1. $4,794,429(.10)/ (1.10)^30 -1 = $29,147 annual contribution for the next 30 years.

Most people don't even make that much a year. Thank god for RailRoad Retirement.

[The King]

Most people don't even make that much a year. Thank god for RailRoad Retirement.

Don't forget to mention the centerpiece of most retirement non-plans.....Social Security.