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How much $$ do you save a year

C

chorb

Golden Member
I just finished my first year out of college working in the real world. I make a decent amount for the area I live in (Orange County, CA).

I've managed to save roughly 30% of my pre-tax pay (~44% of my take home), thats on top of contributing 10% to my 401k.

I still live pretty frugally (roommates, dont eat out that often, no new cars, etc...).

How bout the rest of you ATOTers, do you like looking at your money in the bank? or go spend it like its going out of style.
 
Usually around 50% of net depending on my income for that month. Sometimes it's 0%, because you can't always tell when invoices are going to be paid.
 
I have an automatic monthly transfer of $500 from checking to savings, in addition to contributing to my IRA. Assuming nothing happens that requires me to transfer anything back to checking, all told, maybe around 10% yearly that I actively save (though we certainly don't just spend the rest either).
 
on top of 401k, about 20% pre-tax.

but we are in an expensive area and are paying for our wedding.
 
Last year I saved about 30-35% of my income. This year so far, I haven't saved much because I purchased a car and put down a large down payment. That will change in a few weeks when I start my new job.
 
Of pre-tax income, this is what I have planned for the next year (they only vary slightly from the previous year):
[*]18.9% goes towards extra payments on my house mortgage.
[*]7.1% goes towards an IRA.
[*]3.4% goes towards forced payments on loan principal (house mortgage + student loans).
[*]Total: 29.5% "saved".

In that calculation, I consider reducing debt to be exactly the same as increasing savings. Note: I also assume no raise or salary cut in the next year. That will of course affect the values. All raises/decreases will affect the extra payment towards the house mortgage. Note 2: I will also likely get some stock from work (value as of yet is unknown) which would add to income and savings equally, but will affect the percentages. Note 3: next summer I will get married to someone with lower expenses but nearly equal salary, thus double the savings rate for all the numbers above. Note 4: Do we count retirement plan increases as savings? If so, I need to increase the amount of savings that I list above.

Post tax, multiply all those percentages by 1.16.
 
After rent and bills, I have about 40% left from each paycheck. I don't know how much I save, it varies month to month.
 
Originally posted by: adairusmc
If I died tomorrow, the money that would be in savings would be worthless to me. 😛
Click to expand...
If you died in 50 years, having no savings will mean 50 years of a worse life.

 
Originally posted by: dullard
Originally posted by: adairusmc
If I died tomorrow, the money that would be in savings would be worthless to me. 😛
Click to expand...
If you died in 50 years, having no savings will mean 50 years of a worse life.
Click to expand...

I suppose, if you plan on living that long. 😉
 
Originally posted by: dullard
Originally posted by: adairusmc
If I died tomorrow, the money that would be in savings would be worthless to me. 😛
Click to expand...
If you died in 50 years, having no savings will mean 50 years of a worse life.
Click to expand...

I'm already married, how much worse can it get? 😛
 
Originally posted by: newb111
65% of net.
Click to expand...
Do you live with your parents or someething?

The NYC area cost of living is so high that it would be almost impossible or at the very least, incredibly unreasonable for anyone under a quarter mil salary to bank that high of a % and be totally independant and self sufficient.

For most of us 65% net is what is left over after we pay rent. Most middle class around here have maybe 50% net income after rent and bills (no debt), then you have food and other stuff. Hell I pay 40% net to rent alone ($2000-3000 apartments around here). I guess I could lower it by having roomates or living in a less desireable area but I'd rather like where I live then save some extra money, as long as I can afford it. Since I have very few other monthly expenses I don't mind.

That being said I bank maybe 10% of my net. It would probably be 5-8% higher if I didn't give money to family, but that's part of my point of saving.
 
Well least see, right now, about 75-80% is going to into my bank account, specifically a decently yielding money market account. This is only because I'm saving for a house and living as frugally as possible to save as best I can. These price increases across the board are hurting though. All told though, I've managed to put just under 20K into that money market account since January. Not too bad.
 
I count paying off debt as savings as well.

Last year:
A little over 10% of gross went into retirement.
Somewhere around 20% of gross went into early debt payoff (wife's student loans, mostly - only have mortgage debt now) + nonretirement savings/investments.

So about 30% of gross was saved. I think we've reached a good balance between living for today and saving for the future. We don't live ultra-frugally, nor do we live a life of diamonds and new cars.
 
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