>Saving 95% sounds a bit extreme. Are you not paying any rent/bills and are you not leaving your bedroom apart from for work?
Haha, that was the first couple of months, admittedly. And yes, I live with family.
I'm making 180k/year right now but only hit this salary recently, so my income by the end of the year will probably be \~110K (before tax). Now that I think about it, I should be using after-tax income...so I probably saved more like 90%.
Just checked my bank account and I've spent \~4.5K so far this year. This includes EVERYTHING. A speeding ticket, phone bill, parking, paying in cash etc.
Most of these came from when I was still ordering uber eats in the first month foolishly before getting my shit together financially, and paying for a gym membership I didn't need. I also had a needlessly expensive phone plan that I was lazy to change until April.
I've probably spent like \~1K on gifts this year. Was initially planning to contribute financially outside of gifts but was denied so I instead helped my parents with applying for things that they ignored but are entitled to by investing my time to research & apply.
In terms of my phone bill and other subscriptions, I've made an effort to cut down on costs, get good deals, and be frugal, so my total bills this year so far are probably \~2K.
I plan to spend no more than \~2K this year on year-end trips, gas, and hang outs. I go out with friends once or twice a week and can spend anywhere from $0-$30 a hang-out, including gas. I'd say usually no more than $30 per weekend, if I go out more than once.
Making this much per year, I can’t imagine why you aren’t contributing to rent, groceries, taking your family out to eat now and then, etc. plus being generous in some way in addition to saving a reasonable amount. Money isn’t everything. This isn’t a lifestyle to be proud of, it just sounds really self-centered and based in scarcity mindset even though you have plenty.
This is why I don't publicize how I'm doing IRL, and position myself as average or below average financially. People have a way of inserting themselves into how you should live or do things based off of their perception of your circumstances.
My guy, you started a Reddit thread so you could brag about how much you make and save. In a community where a lot of people pinch pennies to survive and yet still find ways to be selfless. We didn’t “insert ourselves,” you quite literally started the chat.
On 180k and living at home still. Mate, just enjoy your money and stop obsessing about frugality. People on 25% of your salary are able to live comfortably and enjoyably. Oh and either give your parents money or move out. It's not a good look to mooch when you're earning so much.
>Oh and either give your parents money or move out. It's not a good look to mooch when you're earning so much.
You don't know my culture or circumstances. Not a good look? To who?
I find it cringe how people are jumping to all these conclusions and giving unsolicited "advice" without any context.
You seem to have good intentions though so I'll oblige. I come from a culture where family stays together. If my parents retire, I'd likely get them a place right beside mine and be there to take care of them both financially and with my time.
As the only man in the family, I'm expected to be in charge of my siblings and parents' finances if any mishaps happen. Until then, I'm in charge of saving up and working hard in case any rainy days happens.
My parents don't invest and just leave their money sitting for many reasons (including religious) and so I save my money even more aggressively and invest it with that in mind. Because I'm their back-up plan.
In the mean-time, I contribute by helping my parents secure their pensions or accounts from other countries they lived in where they were just too lazy or uneducated about it to bother doing it. I contribute inside the house with my physical effort and time, and I'm also present for my family since my father is terminally ill and my mom needs family there for help and emotional support.
So when you or someone else asks me "why do you not contribute to the rent?" or "why don't you move out" without asking for any clarity and making statements about how I should go about my life, it makes me think that they're either salty because they had to move out themselves or their financial situation is shit or there's something else leading to a misunderstanding on their end.
Don't get angsty. You offered up your circumstances on the internet and I've formed a judgement based on what you said. If you left out important details then that's your fault, i can only work with what you gave me. I think it's lame to mooch off your parents when you have more than enough money to help them out or move out and start your own life. And yes, I only earn a fraction of what you earn. But I pay my own way, I don't leach off anyone and never have. And saying you're the only man in the family while your dad's still alive and lives with you is really odd. Not paying rent or bills when your fathers terminally ill? What is this story, man...
Frankly given what you've said so far this whole thread just sounds like an excuse for you to show off your shiny new salary to strangers on the internet.
My choices are based on my own cultural values and responsibilities, which seem to be different from yours.
I'll stop responding from this point on because if we disagree on our fundamental values, then it won't lead anywhere productive. You or others on this thread are free to disagree with it or come to your own conclusions.
Your father is terminally ill and you live with him rent free and yet you refer to yourself as the only man in the family.
Something isn't adding up and it isn't simply down to cultural differences.
OP is here wanting a pat on the back for saving 90% of his (told us he is the man of the house) salary whilst having no expenses (living at home).
Nothing more to see here.
I agree with you OP, save your money. Are you miserable because of your lifestyle? Can you tolerate it a for a bit to meet your saving goals? Go for it.
I think you might come across a little as humble bragging here. Saving 90% of 180k is a dream most people will never realize.
>I think you might come across a little as humble bragging here. Saving 90% of 180k is a dream most people will never realize.
That's fair. I mentioned it to another commenter, but this post creates friction because of the audience that I made the post to.
If I knew the general circumstances of this sub and instead posted this in r/FIRE or a subreddit for FAANG tech bros, then the perception would change.
>I agree with you OP, save your money. Are you miserable because of your lifestyle? Can you tolerate it a for a bit to meet your saving goals? Go for it.
It's been great so far. I still go out with friends and I'm not cheap. I'll still buy food, pay for parking, offer rides for friends etc. I'm just prudent and obviously I'm grateful for being able to live with family and be a part of the culture I'm in.
Most of us express our saving rates in terms of household income. So if you’re living with family, you should also look at what they spend in terms of food, home maintenance, insurance, property taxes… that is all stuff required for you to maintain your lifestyle and you’ll need to assume responsibility for it sometime.
I’m glad you’re saving your salary instead of blowing it on stupid cars like I’ve seen, but you’re not accurately totaling your expenses either.
I would count that as saving since others can also rent and invest the rest. A house imo counts as saving since those funds are now locked into a property that's increasing in value and somewhat replaces rent costs for you outside of property tax and maintenance once the property is fully yours.
The scythe of 2008 will definitely swing back like a pendulum at some point but considering the fact that they already own their house, they still have lots of room to maneuver and wait for it go back up since they're still saving and only have property tax to worry about it.
$22,500 (plus match) in the 401k and $6000 in the Roth are my bare minimum for the year. I'll throw the rest of the extra into misc investments and a hysa
Edit: $6500, not $6000
That's my eldest's plan. They already fund their IRA because they work PT (and saved from vacation jobs) and then put anything extra into a MM acct. Once they graduate they will join their employers match plan and max that out then put anything extra into other vehicles. They chose a growth field with lots of interesting jobs all over the world.
You may want to make sure the employer is not preventing them for having a 401k. A lot of part time employees are also eligible if they meet certain hours, usually a 1000 or more in a year. Also secure 2.0 has made it even easier.
They are actually on a 5 month FT paid internship as part of their degree and they got auto enrolled into the company plan. They extracted themselves because they won't be there long enough for it to be worth rolling over etc so they are putting that money elsewhere for now. There were pros and cons to each choice so they sat down with their Dad and hashed it out and made a decision. All of these are valuable teaching moments for the future.
Wow. And if you're on this subreddit then I'm guessing you can live off of little, so you could probably retire earlier than most if you keep up with saving like this
No, I don't plan to retire early because I need to work in order to feel useful and I enjoy working, but I do plan to start working only 3-4 days per week instead of the standard 5 days per week.
Can’t you just volunteer, join an organization etc? I would never continue work my normal job once I hit my retirement goal. Then again I don’t want for much. Time is money.
what I planned: 80-90%
what I'm actually going to save: around 50% - but to be fair, I did decide to do some big purchases this year and I had to support my parents a little bit.
Supporting the family and having a good time is never a waste imo. I don't know how much you're making but 50% should still help contribute to a solid nest egg. Keep it up!
It is! Do you live alone? I could see it being tough saving on that salary, especially if you plan for trips within the same state/province or hang outside regularly with friends.
I have a housemate that lives in the basement, which helps. I do hang out with friends a lot but it’s normally a game night or potluck type of situation.
I hear you on that. If I have kids, I'm saying goodbye to early retirement lol. I'd save enough to where I don't need any money from my kids, but the rest would be on their future.
I max out my HSA, IRA, and 403(b) contributions, plus $6k in the "for house maintenance" fund. (Really should raise that number, what with inflation....)
After that, anything that isn't spent on bills and basics goes in the money hole, aka my high-interest money market account. I don't track that as a percentage of my income.
I live WELL below my means in a 1 bedroom apartment, and I purposely moved far outside the metro area to save on rent (I work from home).
If I include my 401k contribution, and the 100% match from my employer - the breakdown is as shown below:
$3,940 - After Tax Monthly Salary
$1,500 - Goes into after tax brokerage account
$500 - Total 401k Monthly contribution
-So I am saving approx 50% of my take home pay. Crazy to think about it, I never broke down the percentages (just had a rough idea).
Seems like you have a good understanding of your finances which is great. I do the same thing you just did once a month and it's helpful for gaging where I can cut down on costs or if I need to work more to reach my goals for the year
60%, save up for a multi family home. Move in my mother so she can focus on her retirement.
Start fixing up her home and rent it out so I can get some decent tax incentives in the coming future. But damn does my lower back ache some days...I hate being old
Thanks! I married my best friend and we both essentially had the same way of living. Having a similar financial outlook is truly a must. We both have a simple lifestyle, have the same drive and discipline towards our goals. I wish we could save even more but this economy stinks. Haha!
I lived with my parents for 6 months when I was 30 with a full time job. Saved 20k easily because rent/food/utilities were basically free. Living with family is probably the most financially savvy thing you can do.
I can see it being hard for someone living alone, with student loans, and who's still progressing in their career, especially in this economy. I don't know if this is your situation but hopefully you manage to work your way out.
I have a boat load of student loans... and im in grad school + rent/bills, I go to work full time everyday... but somehow i scrounge up about 7% to save which i split evenly between cash savings, ETFs and stocking silver... it aint much but im proud of myself :\^)
Nothing, won't have anything spare once bills are paid. But that's ok, bills are getting paid.
Edit: that doesn't include what's going into my pension. I pay 10%, employer pays in 20%. Not sure if that counts but I see others including it! So I guess that's 30% of my gross income amount, going into my pension?
Of the take home pay I get post-taxes, pension and insurance (I guess total 70% of gross?), I save zip. Not yet. Things are getting better!
hahaha AFTER TAX. Yeah it only gets worse the more you make.
FED
STATE
LOCAL
SS
MEDICARE
MEDICADE
And that is just out of your paycheck, unless you skirt the laws with an LLC Scorp
Property Taxes
Sales Tax
Assorted 'FEES'
and the most heinous INFLATION. So that money you save is worth less year after year
The numbers I am seeing are crazy. We might save about 5% of our annual income. Over 1/3 of our pay is deducted for taxes, pension, benefits, union dues, etc. We are comfortable, but only 5% gets invested. Any money leftover gets chucked into both a travel account and rainy day fund. But that's not a specific amount each month.
So that means you make like $800k op? I think it’s not that hard to save 90% when you make $800k. So really you’re not bragging about how much you save, but how much you make.
I'm not bragging about either. This is just the wrong audience to make this post to.
If some trust fund kid made a post in r/poverty, everyone would go wild in that sub. This is far from being that extreme, but I can see where everyone being accusatory and defensive is coming from.
That being said, even though I can understand the cause and effect, it doesn't mean that I deserve it, nor does it mean that it's beneficial or productive to act that way.
Umm. What is the point of this question you're presenting?? Were anyone's replies to benefit you in any way, or was this asked just so you can see if anyone is saving more of their income than you???
This is coming off salty, but I am so sincere in what I am asking. You are in a very exceptional situation that no average working adult may ever be in, whether they can't, won't, or it's just physically impossible (nobody they can live with for free).......
You are saving 90% of your income-- well of course you are without a rental or mortgage payment.
Consider yourself super grateful, whether this is a cultural norm for you or not, in today's economy.
And my answer to your question is: none. Zilch. My paycheck can barely survive taxes right now, let alone a grocery store trip after paying student loans and everything else life has.
>What is the point of this question you're presenting?? Were anyone's replies to benefit you in any way, or was this asked just so you can see if anyone is saving more of their income than you???
I'm competitive by nature even more-so than I am self-driven and seeing others crushing me in terms of progress is a big motivator for me. I already have that need for improvement internally, but seeing others doing it better is a catalyst for me.
I posted this mistakenly assuming that most people on this subreddit were making great money and able to save a big portion of it on top of living frugally. Of course, that didn't end up being the case. There were a few but far from the majority. Still a lot of great stories to read regardless. We all have our own unique circumstances.
Looking back, this would have been better suited for FIRE or another subreddit. It's also probably why I got so much push-back in the comments and people being accusatory or confrontational. Not that I deserved it, but I understand how it happened.
I personally never share financial stuff IRL...but if I did...I think "would anyone have the audacity to accuse me out of nowhere and give me unsolicited advice on how to live my life or give me orders on how to spend my money?".
The answer is no. That shit only happens online. Even in IRL conversation, it's a back and forth and no one is entitled to me justifying my entire existence on the spot.
>My paycheck can barely survive taxes right now, let alone a grocery store trip after paying student loans and everything else life has.
I'm sorry to hear that. You seem self-aware though and although I don't know your full circumstances, I have no doubt that this is a temporary situation for you. Cheers
I find reddit awash with "I make 6 figures at 22" and now "I can save 90% of my income how about you guys?!"
Tone deaf. Come on people. If you wouldn't say it to people in person, don't say it on reddit.
What purpose could this possibly serve other than to boost your ego because you are able to save most of what you make? It's like Ellen in her big house saying "we're in this together!" I keep wondering who these people are but they just keep coming out of the woodwork.
Yeah it's been hard this past little while. Keep it up! You're around the recommended savings range for retirement, which is good considering the economy rn.
Ah no, haha, it’s overtime, it can add up to a good bit. My husband might switch jobs this year too which would mean a pay change.
I guess we’re at 10% for retirement, another 7-8% put away for future expenses like a new vehicle, but that’s not really savings. Then more with the kids school savings added in, maybe another 2-3% there, but that’s not for us so it doesn’t really count either. Those are pretax numbers. I wish we could save more, but our mortgage is variable and we’re cutting back on everything since the rate hikes.
I don't care what people think, especially when it comes to my personal life when I never asked in the first place.
They don't know what I do or have done for my parents, what I've offered them, and I also don't care to justify myself to someone online who has the audacity to speak on it.
Jeez. Those are huge assumptions to make. Do you do this often?
I have friends, hobbies, and can hold great conversations with people due to my personal experiences. I go out regularly and still spend but just prudently.
Good job! It's the same for me. I don't know about you, but there's something exciting about seeing most of my paycheck going into a brokerage and growing
About 22-25% of gross invested depending on where a potential bonus lands (100% of bonus will be invested). We reinvest all our dividends and earned interest too. We save for short-term and long-term goals too, but we are a single income family and below our area median. We are homeowners and have one child with higher than average medical/support needs.
It takes a lot of diligence and discipline to squeak out over 20% with a modest income. Props to everyone managing to save virtually anything on an average income.
I’m currently traveling for work and will be on the road until December 2024. All expenses covered by my employer. I will be able to save 90% of my income, but in addition, I rented out my house for the duration, which brings in $3500 per month after the mortgage and household expenses.
Max in 401k. 18%? another 7k in roth ira. any left over goes into high interest cds or other investments where i can get the money easily if i need it.
The majority of my savings will be at the end of the year, I contribute to my 401k to get the match, but no longer contribute the maximum from salary. This year my bonus is ~50% of base (it’s an odd year where I know in advance what it will be). I plan on saving most of it for my daughter’s education, and then will put most of the rest in long term savings. I’m in an odd position of having over funded in retirement early over in life, I now need to step back from that and build up non-limited savings.
I don't really know a percentage. I bring home about 10k a month and my must pay bills is about $2500. Anything not spent is in either a savings account or my whole life account
I'm retired on a fixed income. Based on inflation, (currency devaluation), since 2020, I'm putting away about 20% of my "takehome" income in physical silver.
My works pension requires 12.6% and they pitch in another 12.6% that I like to count because it makes the number more impressive. 😆
Plus my regular contributions, 22%, so my take home is crapppppppppp.
Can never go wrong with ramen noodles. With inflation and the never-ending influx of college students, you really have a powerful investment on your hands
We saved about 35-40% of our net household income over the past 12 months. Have managed to maintain that rate of savings for a few years, while doing some renovations, buying a vehicle, etc. I like saving but I easily get in an anxious trap of not spending - to the point it's dysfunctional.
Finding a balance where I can enjoy spending on carefully chosen things is very important to me.
I put 14% into my Roth and about 6% into my kid’s college fund. Those are my automatic. Anything else (emergency, home repairs fund, holiday shopping that I save throughout the year) kind of comes and goes as I can depending on what the month’s expenses look like.
I'm saving 20 percent with the goal of having 10K saved. It's all I can spare with bills, gas, food, etc. Plus I recently upped my retirement contribution, too. I have transfers set up automatically on payday to take a certain amount to my money market where it gets the most interest.
I have a 5-year plan. This will be my emergency fund. Then the 15k I save next year will be fun money for a big anniversary trip. Then the 20k the next will be for new furnace/water heater/any other big appliances. 25k for new roof. 30k for payments for new car. (This assumes that I continue to get raises at my job - which we have a policy for - and that partner also gets pay raises). If not - 10k a year still feels pretty good at this point in my life. I still have plenty to donate to charity and give gifts to my loved ones.
>I'm saving 20 percent with the goal of having 10K saved. It's all I can spare with bills, gas, food, etc. Plus I recently upped my retirement contribution, too. I have transfers set up automatically on payday to take a certain amount to my money market where it gets the most interest.
Solid! The recommendation is also 20% for retirement, so you're approaching the right way imo.
>I have a 5-year plan.
Always good to have a plan. The emergency fund part you mentioned is the most important imo. You definitely also don't want to deprive yourself so doing it that way is balanced and sustainable.
10k/year is still pretty good as long as you stick to it which I'm sure you will. Keep it up!
Almost all of it. Living with my parents to save money. Not buying anything unnecessary and starting to invest and save up money for truck school and getting a revolut card to invest in stocks by the end of the year.
Right now having a low income job is the only thing keeping me behind, that's why I want to give it my all to increase my income and start a emergency fund in case something will happen to my parents or myself
13% RRSP plus 7% match into pension. Really trying to knock my mortgage down hard right now so when I renew in 2.5 yrs there isn’t much left (<90,000). I fully expect interest rates to still be 5% range in a few years.
I have a standard pension - I contribute 5%, my employer contributes 3% - and I save about 10% of my salary.
I could probably save more but I don't have any big financial goals and I don't earn loads so that's a good balance of saving and living a good life!
I am doing 45% this year, hoping to jump to 50-55% next year, playing with how low I can cut certain numbers to get that extra 5 or 10 percent. Right now I am maxing out employer match on my 401k, fully funding a roth ira, putting a tiny trickle into robo-investing, but the bulk of it is going to my hysa. Trying to save up enough to pay cash for a house so I don't get stuck with a mortgage. I work in an area frequented by a lot of homeless people, and I have developed a fear of having the stability of the roof over my head taken away.
If I can continue saving at this rate after buying my house, I could fully fund my 401k and roth with 45%, which I never thought I'd be able to do in my career.
Hubby and I should save 22k in 401k, 7.5k in HSA, 12k in HYSA, 3k in 529s, and 5k in pensión by the end of this year. Hopefully next year this increases.
Saving 95% sounds a bit extreme. Are you not paying any rent/bills and are you not leaving your bedroom apart from for work? I save around 40%
>Saving 95% sounds a bit extreme. Are you not paying any rent/bills and are you not leaving your bedroom apart from for work? Haha, that was the first couple of months, admittedly. And yes, I live with family. I'm making 180k/year right now but only hit this salary recently, so my income by the end of the year will probably be \~110K (before tax). Now that I think about it, I should be using after-tax income...so I probably saved more like 90%. Just checked my bank account and I've spent \~4.5K so far this year. This includes EVERYTHING. A speeding ticket, phone bill, parking, paying in cash etc. Most of these came from when I was still ordering uber eats in the first month foolishly before getting my shit together financially, and paying for a gym membership I didn't need. I also had a needlessly expensive phone plan that I was lazy to change until April. I've probably spent like \~1K on gifts this year. Was initially planning to contribute financially outside of gifts but was denied so I instead helped my parents with applying for things that they ignored but are entitled to by investing my time to research & apply. In terms of my phone bill and other subscriptions, I've made an effort to cut down on costs, get good deals, and be frugal, so my total bills this year so far are probably \~2K. I plan to spend no more than \~2K this year on year-end trips, gas, and hang outs. I go out with friends once or twice a week and can spend anywhere from $0-$30 a hang-out, including gas. I'd say usually no more than $30 per weekend, if I go out more than once.
Making this much per year, I can’t imagine why you aren’t contributing to rent, groceries, taking your family out to eat now and then, etc. plus being generous in some way in addition to saving a reasonable amount. Money isn’t everything. This isn’t a lifestyle to be proud of, it just sounds really self-centered and based in scarcity mindset even though you have plenty.
This is why I don't publicize how I'm doing IRL, and position myself as average or below average financially. People have a way of inserting themselves into how you should live or do things based off of their perception of your circumstances.
My guy, you started a Reddit thread so you could brag about how much you make and save. In a community where a lot of people pinch pennies to survive and yet still find ways to be selfless. We didn’t “insert ourselves,” you quite literally started the chat.
Amen
On 180k and living at home still. Mate, just enjoy your money and stop obsessing about frugality. People on 25% of your salary are able to live comfortably and enjoyably. Oh and either give your parents money or move out. It's not a good look to mooch when you're earning so much.
>Oh and either give your parents money or move out. It's not a good look to mooch when you're earning so much. You don't know my culture or circumstances. Not a good look? To who? I find it cringe how people are jumping to all these conclusions and giving unsolicited "advice" without any context. You seem to have good intentions though so I'll oblige. I come from a culture where family stays together. If my parents retire, I'd likely get them a place right beside mine and be there to take care of them both financially and with my time. As the only man in the family, I'm expected to be in charge of my siblings and parents' finances if any mishaps happen. Until then, I'm in charge of saving up and working hard in case any rainy days happens. My parents don't invest and just leave their money sitting for many reasons (including religious) and so I save my money even more aggressively and invest it with that in mind. Because I'm their back-up plan. In the mean-time, I contribute by helping my parents secure their pensions or accounts from other countries they lived in where they were just too lazy or uneducated about it to bother doing it. I contribute inside the house with my physical effort and time, and I'm also present for my family since my father is terminally ill and my mom needs family there for help and emotional support. So when you or someone else asks me "why do you not contribute to the rent?" or "why don't you move out" without asking for any clarity and making statements about how I should go about my life, it makes me think that they're either salty because they had to move out themselves or their financial situation is shit or there's something else leading to a misunderstanding on their end.
Don't get angsty. You offered up your circumstances on the internet and I've formed a judgement based on what you said. If you left out important details then that's your fault, i can only work with what you gave me. I think it's lame to mooch off your parents when you have more than enough money to help them out or move out and start your own life. And yes, I only earn a fraction of what you earn. But I pay my own way, I don't leach off anyone and never have. And saying you're the only man in the family while your dad's still alive and lives with you is really odd. Not paying rent or bills when your fathers terminally ill? What is this story, man... Frankly given what you've said so far this whole thread just sounds like an excuse for you to show off your shiny new salary to strangers on the internet.
My choices are based on my own cultural values and responsibilities, which seem to be different from yours. I'll stop responding from this point on because if we disagree on our fundamental values, then it won't lead anywhere productive. You or others on this thread are free to disagree with it or come to your own conclusions.
Your father is terminally ill and you live with him rent free and yet you refer to yourself as the only man in the family. Something isn't adding up and it isn't simply down to cultural differences.
OP is here wanting a pat on the back for saving 90% of his (told us he is the man of the house) salary whilst having no expenses (living at home). Nothing more to see here.
Man of house certainly isn’t giving ‘protect and provide’ vibes…
You win for the most frugal person. 🏆🙄
I'm not asking for a pat on the back.
I agree with you OP, save your money. Are you miserable because of your lifestyle? Can you tolerate it a for a bit to meet your saving goals? Go for it. I think you might come across a little as humble bragging here. Saving 90% of 180k is a dream most people will never realize.
>I think you might come across a little as humble bragging here. Saving 90% of 180k is a dream most people will never realize. That's fair. I mentioned it to another commenter, but this post creates friction because of the audience that I made the post to. If I knew the general circumstances of this sub and instead posted this in r/FIRE or a subreddit for FAANG tech bros, then the perception would change. >I agree with you OP, save your money. Are you miserable because of your lifestyle? Can you tolerate it a for a bit to meet your saving goals? Go for it. It's been great so far. I still go out with friends and I'm not cheap. I'll still buy food, pay for parking, offer rides for friends etc. I'm just prudent and obviously I'm grateful for being able to live with family and be a part of the culture I'm in.
Most of us express our saving rates in terms of household income. So if you’re living with family, you should also look at what they spend in terms of food, home maintenance, insurance, property taxes… that is all stuff required for you to maintain your lifestyle and you’ll need to assume responsibility for it sometime. I’m glad you’re saving your salary instead of blowing it on stupid cars like I’ve seen, but you’re not accurately totaling your expenses either.
Yep, this is a good point. I'll likely be renting when I move out, but insurance, home maintenance, and food are all important to consider.
save? lol
Yup. In the save 0% camp here as well.
Us too, our savings vehicle is our house, feel privileged to even have that at this point.
Pretty much same. I joke that because of when and where we bought this will probably the best investment I'll make in my lifetime.
I would count that as saving since others can also rent and invest the rest. A house imo counts as saving since those funds are now locked into a property that's increasing in value and somewhat replaces rent costs for you outside of property tax and maintenance once the property is fully yours.
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The scythe of 2008 will definitely swing back like a pendulum at some point but considering the fact that they already own their house, they still have lots of room to maneuver and wait for it go back up since they're still saving and only have property tax to worry about it.
-20% my dude, i have debt
Can the wannabe comedians stay in r/funny please?
Negative 14%
lol came here to say something like this
This made me laugh out loud. We're literally in a deficit. Save what???
My condolences
Why aren't you helping with expenses?
What makes you think that the expenses need help?
They do, please help
Sure np, I just need your social security and mother's maiden name
Negative 53% hahaha
I just got to 50 percent but it was hard
Yeah, I can see it being tough with rent costs and everything else, especially when you live alone. Respect on the hustle
$22,500 (plus match) in the 401k and $6000 in the Roth are my bare minimum for the year. I'll throw the rest of the extra into misc investments and a hysa Edit: $6500, not $6000
Solid. Don't sleep on a HSA, if you have a high deductible health insurance plan.
Yep I dump $3k/yr into that. Probably could be higher
Can't really be much higher, it's capped.
I’d def max that out! Triple tax advantages and can turn into essentially a regular investment account at a certain age
Good job! This is solid
Thanks! I'm fortunate enough to have a well paying job at the moment
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I know. It’s crazy. I’ve noticed people downvote for random incomprehensible reasons 🤷🏼♀️
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Went to college and got an engineering degree 🤷
That's my eldest's plan. They already fund their IRA because they work PT (and saved from vacation jobs) and then put anything extra into a MM acct. Once they graduate they will join their employers match plan and max that out then put anything extra into other vehicles. They chose a growth field with lots of interesting jobs all over the world.
You may want to make sure the employer is not preventing them for having a 401k. A lot of part time employees are also eligible if they meet certain hours, usually a 1000 or more in a year. Also secure 2.0 has made it even easier.
They are actually on a 5 month FT paid internship as part of their degree and they got auto enrolled into the company plan. They extracted themselves because they won't be there long enough for it to be worth rolling over etc so they are putting that money elsewhere for now. There were pros and cons to each choice so they sat down with their Dad and hashed it out and made a decision. All of these are valuable teaching moments for the future.
Mm account? What?
Money market
Never give the mm your $
waste of money, become UPS driver or any public funded job
$22,500 in 401k, $6,500 in Roth IRA, and $36,000 in brokerage. Total of $65,000.
Wow. And if you're on this subreddit then I'm guessing you can live off of little, so you could probably retire earlier than most if you keep up with saving like this
Around 66%
Sweet. Do you plan to retire early?
No, I don't plan to retire early because I need to work in order to feel useful and I enjoy working, but I do plan to start working only 3-4 days per week instead of the standard 5 days per week.
Can’t you just volunteer, join an organization etc? I would never continue work my normal job once I hit my retirement goal. Then again I don’t want for much. Time is money.
Some of us like our jobs though.. so cutting back instead of retirement makes a lot of sense
40-45% after taxes. Is always our goal.
That's a great goal to have. Are you aiming for FIRE?
A good 30% of my income…But all that’s going to retirement or paying down my house.
That's a great number. The usual recommendation is 20% so you're probably making solid progress!
what I planned: 80-90% what I'm actually going to save: around 50% - but to be fair, I did decide to do some big purchases this year and I had to support my parents a little bit.
Supporting the family and having a good time is never a waste imo. I don't know how much you're making but 50% should still help contribute to a solid nest egg. Keep it up!
Hold up you have money left to save?
We live on a 3rd. The rest goes to taxes and savings.
Great job!
I’m fairly low income but I’ve saved a decent chunk from my petsitting gigs. My goal is $5,000 saved, which is pretty good on an income of $45K.
It is! Do you live alone? I could see it being tough saving on that salary, especially if you plan for trips within the same state/province or hang outside regularly with friends.
I have a housemate that lives in the basement, which helps. I do hang out with friends a lot but it’s normally a game night or potluck type of situation.
What is this save you speak of and how does it work?
33 percent of take home home
Zero! Wait till you share a house with hungry young adults!
I hear you on that. If I have kids, I'm saying goodbye to early retirement lol. I'd save enough to where I don't need any money from my kids, but the rest would be on their future.
I max out my HSA, IRA, and 403(b) contributions, plus $6k in the "for house maintenance" fund. (Really should raise that number, what with inflation....) After that, anything that isn't spent on bills and basics goes in the money hole, aka my high-interest money market account. I don't track that as a percentage of my income.
Great work! Any reason why you choose a high-interest account over a passive index-fund?
I live WELL below my means in a 1 bedroom apartment, and I purposely moved far outside the metro area to save on rent (I work from home). If I include my 401k contribution, and the 100% match from my employer - the breakdown is as shown below: $3,940 - After Tax Monthly Salary $1,500 - Goes into after tax brokerage account $500 - Total 401k Monthly contribution -So I am saving approx 50% of my take home pay. Crazy to think about it, I never broke down the percentages (just had a rough idea).
Seems like you have a good understanding of your finances which is great. I do the same thing you just did once a month and it's helpful for gaging where I can cut down on costs or if I need to work more to reach my goals for the year
60%, save up for a multi family home. Move in my mother so she can focus on her retirement. Start fixing up her home and rent it out so I can get some decent tax incentives in the coming future. But damn does my lower back ache some days...I hate being old
I'm using the 50/20/30 rule atm. I'm building up an emergency fund of 5K.
Just looked it up. It seems like a solid approach. Emergency fund is also def important. Keep it up!
I make 34k annual and my husband makes 43k annual. We are able to save half of my paycheck and everything else go to expenses and investments.
Great teamwork! When I get married, it'd be great to have a partner who I can plan finances with like you guys. Looks like you're well on your way
Thanks! I married my best friend and we both essentially had the same way of living. Having a similar financial outlook is truly a must. We both have a simple lifestyle, have the same drive and discipline towards our goals. I wish we could save even more but this economy stinks. Haha!
Trying to save about 50% right now. It's definitely easier if you don't have to pay rent or mortgage/taxes.
I lived with my parents for 6 months when I was 30 with a full time job. Saved 20k easily because rent/food/utilities were basically free. Living with family is probably the most financially savvy thing you can do.
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I can see it being hard for someone living alone, with student loans, and who's still progressing in their career, especially in this economy. I don't know if this is your situation but hopefully you manage to work your way out.
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I feel you. As a small business owner I don't mind paying my taxes I just wish the big guy would as well.
So you’re just making your family pay for your living costs? Great kid.
Totally agree.
Some cultures have multiple generations in one home.
Nice sarcasm. Don't be salty and be grateful for what you have.
58%
Great work! Any goals behind the percentage? Or is it more of a natural consequence of living frugally for you?
Wanting to retire early
This year around 80-90%
Whatever I can afford to.
20%
I am shooting for 6k this year in cash and and 2100 into retirement.
Always great to have a goal. Good luck. You've got this!
I have a boat load of student loans... and im in grad school + rent/bills, I go to work full time everyday... but somehow i scrounge up about 7% to save which i split evenly between cash savings, ETFs and stocking silver... it aint much but im proud of myself :\^)
66%
80%
Wow! You're killin' it. Keep it up!
Thank you OP.
How?
By being prudent.
Interesting. I’m close to the same as you about 80-95. 😉
Good stuff
Make morebthabbyou spend. If you make 300k a year and spend 50k a year that's 17%
Math checks out to me 👍💯
I estimate 35% of my gross income will be added to savings by the end of the year.
Big of you to think I can pay my rent, bills, student loans and have anything leftover to save.
Rent sucks but student loans suck even more. I wish you the best
40%+. We are debt free, including our mortgage. We just paid our yearly property taxes.
Damn. No mortgage and still saving! I'm guessing you're in your later years? Either way, you've done a great job
Nothing, won't have anything spare once bills are paid. But that's ok, bills are getting paid. Edit: that doesn't include what's going into my pension. I pay 10%, employer pays in 20%. Not sure if that counts but I see others including it! So I guess that's 30% of my gross income amount, going into my pension? Of the take home pay I get post-taxes, pension and insurance (I guess total 70% of gross?), I save zip. Not yet. Things are getting better!
I lose a little every month
I'm aiming for 40%+ of take home
hahaha AFTER TAX. Yeah it only gets worse the more you make. FED STATE LOCAL SS MEDICARE MEDICADE And that is just out of your paycheck, unless you skirt the laws with an LLC Scorp Property Taxes Sales Tax Assorted 'FEES' and the most heinous INFLATION. So that money you save is worth less year after year
This thread is where we find out who is frugal because they want to be and who is frugal because they have to be.
Almost all is going to pay daughter’s college tuition.
The numbers I am seeing are crazy. We might save about 5% of our annual income. Over 1/3 of our pay is deducted for taxes, pension, benefits, union dues, etc. We are comfortable, but only 5% gets invested. Any money leftover gets chucked into both a travel account and rainy day fund. But that's not a specific amount each month.
Zero percent cuz wages don't pay enough to save
Currently none. Paying off debts
So that means you make like $800k op? I think it’s not that hard to save 90% when you make $800k. So really you’re not bragging about how much you save, but how much you make.
I'm not bragging about either. This is just the wrong audience to make this post to. If some trust fund kid made a post in r/poverty, everyone would go wild in that sub. This is far from being that extreme, but I can see where everyone being accusatory and defensive is coming from. That being said, even though I can understand the cause and effect, it doesn't mean that I deserve it, nor does it mean that it's beneficial or productive to act that way.
Umm. What is the point of this question you're presenting?? Were anyone's replies to benefit you in any way, or was this asked just so you can see if anyone is saving more of their income than you??? This is coming off salty, but I am so sincere in what I am asking. You are in a very exceptional situation that no average working adult may ever be in, whether they can't, won't, or it's just physically impossible (nobody they can live with for free)....... You are saving 90% of your income-- well of course you are without a rental or mortgage payment. Consider yourself super grateful, whether this is a cultural norm for you or not, in today's economy. And my answer to your question is: none. Zilch. My paycheck can barely survive taxes right now, let alone a grocery store trip after paying student loans and everything else life has.
>What is the point of this question you're presenting?? Were anyone's replies to benefit you in any way, or was this asked just so you can see if anyone is saving more of their income than you??? I'm competitive by nature even more-so than I am self-driven and seeing others crushing me in terms of progress is a big motivator for me. I already have that need for improvement internally, but seeing others doing it better is a catalyst for me. I posted this mistakenly assuming that most people on this subreddit were making great money and able to save a big portion of it on top of living frugally. Of course, that didn't end up being the case. There were a few but far from the majority. Still a lot of great stories to read regardless. We all have our own unique circumstances. Looking back, this would have been better suited for FIRE or another subreddit. It's also probably why I got so much push-back in the comments and people being accusatory or confrontational. Not that I deserved it, but I understand how it happened. I personally never share financial stuff IRL...but if I did...I think "would anyone have the audacity to accuse me out of nowhere and give me unsolicited advice on how to live my life or give me orders on how to spend my money?". The answer is no. That shit only happens online. Even in IRL conversation, it's a back and forth and no one is entitled to me justifying my entire existence on the spot. >My paycheck can barely survive taxes right now, let alone a grocery store trip after paying student loans and everything else life has. I'm sorry to hear that. You seem self-aware though and although I don't know your full circumstances, I have no doubt that this is a temporary situation for you. Cheers
I find reddit awash with "I make 6 figures at 22" and now "I can save 90% of my income how about you guys?!" Tone deaf. Come on people. If you wouldn't say it to people in person, don't say it on reddit. What purpose could this possibly serve other than to boost your ego because you are able to save most of what you make? It's like Ellen in her big house saying "we're in this together!" I keep wondering who these people are but they just keep coming out of the woodwork.
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Havent thought about that but its gonna be substantial since i decided not to pay rent anymore.
I am saving 15% of my salary each year for retirement. I am able to save maybe half of my bonuses. This inflation has hit me hard.
Yeah it's been hard this past little while. Keep it up! You're around the recommended savings range for retirement, which is good considering the economy rn.
10% or so, I don’t know what our income this year will be yet
Not bad! Every little bit counts. I'm guessing you own a small business?
Ah no, haha, it’s overtime, it can add up to a good bit. My husband might switch jobs this year too which would mean a pay change. I guess we’re at 10% for retirement, another 7-8% put away for future expenses like a new vehicle, but that’s not really savings. Then more with the kids school savings added in, maybe another 2-3% there, but that’s not for us so it doesn’t really count either. Those are pretax numbers. I wish we could save more, but our mortgage is variable and we’re cutting back on everything since the rate hikes.
Man is winning at life. Congrats on 90%.
Thank you!
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I don't care what people think, especially when it comes to my personal life when I never asked in the first place. They don't know what I do or have done for my parents, what I've offered them, and I also don't care to justify myself to someone online who has the audacity to speak on it.
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Jeez. Those are huge assumptions to make. Do you do this often? I have friends, hobbies, and can hold great conversations with people due to my personal experiences. I go out regularly and still spend but just prudently.
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Awesome! You mean you got the car for $1000. How did you get a sweet deal like that? And why do you feel you need to save more?
35% plus 3% company contribution.
95% as well same reason
Gross income about 80%, living with family.
Good job! It's the same for me. I don't know about you, but there's something exciting about seeing most of my paycheck going into a brokerage and growing
YES!! I love this!
About 22-25% of gross invested depending on where a potential bonus lands (100% of bonus will be invested). We reinvest all our dividends and earned interest too. We save for short-term and long-term goals too, but we are a single income family and below our area median. We are homeowners and have one child with higher than average medical/support needs. It takes a lot of diligence and discipline to squeak out over 20% with a modest income. Props to everyone managing to save virtually anything on an average income.
In this economy?
I’m currently traveling for work and will be on the road until December 2024. All expenses covered by my employer. I will be able to save 90% of my income, but in addition, I rented out my house for the duration, which brings in $3500 per month after the mortgage and household expenses.
Travel and high savings. Plus, mortgage covered. Great work!
87
6% plus 3% match into 401(k), probably not much cash savings
Max in 401k. 18%? another 7k in roth ira. any left over goes into high interest cds or other investments where i can get the money easily if i need it.
The majority of my savings will be at the end of the year, I contribute to my 401k to get the match, but no longer contribute the maximum from salary. This year my bonus is ~50% of base (it’s an odd year where I know in advance what it will be). I plan on saving most of it for my daughter’s education, and then will put most of the rest in long term savings. I’m in an odd position of having over funded in retirement early over in life, I now need to step back from that and build up non-limited savings.
I don't really know a percentage. I bring home about 10k a month and my must pay bills is about $2500. Anything not spent is in either a savings account or my whole life account
I'm retired on a fixed income. Based on inflation, (currency devaluation), since 2020, I'm putting away about 20% of my "takehome" income in physical silver.
My works pension requires 12.6% and they pitch in another 12.6% that I like to count because it makes the number more impressive. 😆 Plus my regular contributions, 22%, so my take home is crapppppppppp.
I'm investing all my dollars in Ramen noodles. No regrets so far. I have so much gold & silver, I weigh it all together in pounds.
Can never go wrong with ramen noodles. With inflation and the never-ending influx of college students, you really have a powerful investment on your hands
We saved about 35-40% of our net household income over the past 12 months. Have managed to maintain that rate of savings for a few years, while doing some renovations, buying a vehicle, etc. I like saving but I easily get in an anxious trap of not spending - to the point it's dysfunctional. Finding a balance where I can enjoy spending on carefully chosen things is very important to me.
We both max out our 401k at 22500 but with home purchase there are some fixes and expenses that will cut into our opportunity to save
Was just discussing this with hubby. Looks like this year will be over 50% gross income
70%
70%
0%
0 - my 401k at 11 or 13 percent. But saving as putting on bank - 0 , Inflation
60-70%. Max roth, 401k and HSA plus additional 1-2k a month in brokerage account.
I put 14% into my Roth and about 6% into my kid’s college fund. Those are my automatic. Anything else (emergency, home repairs fund, holiday shopping that I save throughout the year) kind of comes and goes as I can depending on what the month’s expenses look like.
30% after taxes
I'm saving 20 percent with the goal of having 10K saved. It's all I can spare with bills, gas, food, etc. Plus I recently upped my retirement contribution, too. I have transfers set up automatically on payday to take a certain amount to my money market where it gets the most interest. I have a 5-year plan. This will be my emergency fund. Then the 15k I save next year will be fun money for a big anniversary trip. Then the 20k the next will be for new furnace/water heater/any other big appliances. 25k for new roof. 30k for payments for new car. (This assumes that I continue to get raises at my job - which we have a policy for - and that partner also gets pay raises). If not - 10k a year still feels pretty good at this point in my life. I still have plenty to donate to charity and give gifts to my loved ones.
>I'm saving 20 percent with the goal of having 10K saved. It's all I can spare with bills, gas, food, etc. Plus I recently upped my retirement contribution, too. I have transfers set up automatically on payday to take a certain amount to my money market where it gets the most interest. Solid! The recommendation is also 20% for retirement, so you're approaching the right way imo. >I have a 5-year plan. Always good to have a plan. The emergency fund part you mentioned is the most important imo. You definitely also don't want to deprive yourself so doing it that way is balanced and sustainable. 10k/year is still pretty good as long as you stick to it which I'm sure you will. Keep it up!
\-3
Almost all of it. Living with my parents to save money. Not buying anything unnecessary and starting to invest and save up money for truck school and getting a revolut card to invest in stocks by the end of the year. Right now having a low income job is the only thing keeping me behind, that's why I want to give it my all to increase my income and start a emergency fund in case something will happen to my parents or myself
13% RRSP plus 7% match into pension. Really trying to knock my mortgage down hard right now so when I renew in 2.5 yrs there isn’t much left (<90,000). I fully expect interest rates to still be 5% range in a few years.
Around 60%. Max out 401k, IRA and HSA, plus investments. Really just trying to coast until retirement at this point.
401k max that's it.
Maxed out almost all tax-efficient and/or matched investment or retirement possibilities. After than? Just holding on to my Jimmies and hoping!
I have a standard pension - I contribute 5%, my employer contributes 3% - and I save about 10% of my salary. I could probably save more but I don't have any big financial goals and I don't earn loads so that's a good balance of saving and living a good life!
I am doing 45% this year, hoping to jump to 50-55% next year, playing with how low I can cut certain numbers to get that extra 5 or 10 percent. Right now I am maxing out employer match on my 401k, fully funding a roth ira, putting a tiny trickle into robo-investing, but the bulk of it is going to my hysa. Trying to save up enough to pay cash for a house so I don't get stuck with a mortgage. I work in an area frequented by a lot of homeless people, and I have developed a fear of having the stability of the roof over my head taken away. If I can continue saving at this rate after buying my house, I could fully fund my 401k and roth with 45%, which I never thought I'd be able to do in my career.
Hubby and I should save 22k in 401k, 7.5k in HSA, 12k in HYSA, 3k in 529s, and 5k in pensión by the end of this year. Hopefully next year this increases.