Average Saving Per Year???

[tuixiu]

Thanks for enlightenment on the nature of ind 401k... that will save me the time of today's task of wading thru all your back posts to try to figure out who your employer is and start sending my resume.

 

[tuixiu]

We figure wife's pension like a 401k for now, who knows what the future holds. It's just a tax-def contribution with a 100% match that can be rolled into a IRA as a lump sum upon separation.

 

[Enuff2Eat]

too much saving

there are a lots of folks here save a high percentage of their gross income. Congrats....

do you enjoy more in spending or savings heck, that could a new post question all together. For me, it;s a little of both but I do admit I favor spending than saving... hehehe.. I rather have a cup of wine over a glass of water when i go out.


enuff

 

[semtex]

I like spending too. Spending is a kind of national entertaining.

Thing is a nice cash buffer giving me a safe feeling, which is priceless in this time. I got layoffed three months ago. I worked hard to land down a new job in one month. But same time, I was pretty relaxed. No one in the family was nervous.

 

[ziggy29]

do you enjoy more in spending or savings heck, that could a new post question all together. For me, it;s a little of both but I do admit I favor spending than saving... hehehe.. I rather have a cup of wine over a glass of water when i go out.

I enjoy saving a lot -- it makes me feel like I'm buying more of my future years back from employers. But at the same time, I don't enjoy living an austere lifestyle, and so I do enjoy spending money on things that will really enhance our current quality of life. I'm a little tighter about that definition than I used to be -- meaning it's harder to get me to pry my wallet open for "stuff" -- but when I judge it to be worth doing, I'm not afraid to spend (especially since my paycheck's not a single point of financial failure any more)...

As for your example, if having the glass of wine enhances your enjoyment of life enough to justify the expense and you're still saving enough for emergency funds, retirement savings and debt paydown, go for it! I have little use for the hyper-LBYM attitude that says even one dollar spent on non-discretionary stuff is wasteful, conspicuous consumption.

 

[tuixiu]

Regarding saving vs. spending, there was a great rant letter in the local newspaper the other day after they published an article about the most frugal family:

Much more to life than frugality

Thank you so much for allowing me a glimpse of the life of the winners of the most frugal family contest ("Winners of 'Republic' contest offer 20 ways to save," Arizona Living, Thursday).

I want to be like them when I grow up! That way, after my monthly $40 entertainment money has been spent, I can sit in my home in the dark with the AC off while waiting for a new month and new allowance to kick in.

And when my gas money is gone, I can make my way across town on a bus lugging my children around because I refuse to use a credit card.

There is a word for people like these. They're called martyrs. I would rather be homeless than live in the self-imposed prison they call fiscal discipline. They remind me of anorexics who count every apple slice they eat, thinking they'll get fat if they allow themselves another bite.

Sorry, I would rather enjoy my life than spend every day counting pennies. There is a way to live a life within your means while still allowing space for spontaneity, which they've clearly robbed themselves of.

I find their lives both depressing and bizarre.

- Diane Bancroft, Scottsdale

 

[Culture]

Keep in mind this was a "solo" 401K, where it's often easier to get a large "company match" (which just comes off the top of your pay as a 1099-based contractor). You can put in the usual $16,500 like an employee, but take even more out as an "employer match" if you're self-employed.

This is how my wife and I manage to tax defer $70K last year. I limited out the solo 401k ($46k) and she put in $24k. You can really go crazy if you set up your own personal defined benefit plan. You tax deferred savings can essentially become unlimited. However, this involves lots of overhead with specialty consultants ($$$) and I have elected to not pursue this option.

 

[brewer12345]

do you enjoy more in spending or savings heck, that could a new post question all together. For me, it;s a little of both but I do admit I favor spending than saving... hehehe.. I rather have a cup of wine over a glass of water when i go out.


enuff

Naturally, I enjoy spending. However, I do not feel comfortable doing so unless I am saving a healthy proportion of my income.

 

[FIREd]

do you enjoy more in spending or savings heck, that could a new post question all together. For me, it;s a little of both but I do admit I favor spending than saving... hehehe.. I rather have a cup of wine over a glass of water when i go out.

I enjoy both. Right now I am looking forward to 2 things: sending a bunch of money to Vanguard on Monday (next paycheck), and buying a brand new digital camera... I am equally excited about both prospects.

 

[W2R]

do you enjoy more in spending or savings

Spending. One of the things I get the biggest kick out of is buying a few more shares of Wellesley VWIAX.

Then I watch over it every day just like a potted plant, to see if it is thriving and doing OK. If I am lucky, it grows. Unlike a potted plant, every three months my Wellesley pays me back.

 

[Red Rover]

Great thread. I never figured it up like this before.

Cash = 1%
Retirement = 14%
Other = paid 5% towards my mortgage
Other = bought 6 rental houses = 29%

Total = 49%

My income varies so I never know how much I will earn but I'm hoping to put away/invest at least 40% this year.

 

[NW-Bound]

In the last quarter, the average American saved 5.7%, the highest in 14 years. See the enclosed chart from US Bureau of Economic Analysis, which shows only up to the 1st quarter.

The posters here save far more. But then they also make much more than the average household income. It is easier to save if your income far exceeds the typical needs, yes?

It is not to deny these posters the credit for their determination. I know people who make this kind of money, yet have little assets to show for it.

 

[dessert]

Yes, I do think that the folks on this site are not the norm for sure.
This year I am saving ~63% of my salary.

Yes we are fortunate......but I do feel like this was not luck either. 32 years on the job to build up to this. A little "LBYM" helps too.

 

[hankster]

Retirement $21,000 22%
Investment $17,000 17%


Still working, household income $97,000

 

[tmm99]

1) Cash/taxable investment - 27K
2) 401K with catch-up - 22K

38% of gross income.

 

[tuixiu]

No debt + paid off townhome so expenses pretty low for us.

401k + 457 = 33k
Pension contribution + w/vested match = 15k ish
Taxable = approx 4k/month with dips for large expenses and April 15

So probably somewhere between 90k-96k savings per year

 

[Mill]

Everyone said an average American do NOT save enough. I beg the difference in this forum. There ain't nothing average about the members in this forum.

So with that said, what is your Average Saving per Year??

1) Cash
2) Retirement (401k, IRA..)
3) Investment (meaning incomes goes into taxable account)
4) Kids education (429 plans...)

% Total saving vs. % Income Earned

Income: about 42k (depending on overtime)

2009 numbers prorated:
1 cash 5k for 2010 Roth IRA contribution =5k
2 5k in Roth IRA, 15k in 401(k)=20k
3 Taxable account =5k
4 n/a =0k

 

[FANOFJESUS]

That's great Mill so you live on about 12k a year, good work. That it about 75% of your income that you save.

 

[Meadbh]

Based on combined gross income of $161K:1) Cash/TFSA: $26K2) RRSP's: $25K (incl. company matches of almost $14K)3) Taxable Acct: $10K4) RESP: $2500 (for 1 child but this amount will double since kid #2 is due in Dec. )Not incl. employer matches on the RRSP's, we save almost 40% of our gross income. We're putting a lot in cash right now since I'll be going on maternity leave in Nov. for one year (and not sure yet if I'll be going back to work at the end of it).

Congratulations.....look forward to hearing about Calgary Baby!

 

[Khan]

Last 3 years of w*rking ($75K) was saving ~50% in TSP, Roth, CDs.

Now: On 1st of month $2160 into checking (after med insurance & taxes)
I rarely spend all of it.
Occasionally have a $1000 month.

I don't feel deprived, I just don't want stuff.

I could probably spend even less if I wasn't lazy (I pay people to do yard work & house work).

 

[se012101]

152k gross income last year. We saved 56k - 50k of that went towards paying off the mortgage (and we made the final payment Jan this year ). The other 6k we used to blast some credit card debt that had built up.

 

[Lawrence of Suburbia]

I only make about $30k in my job. I save $6k in my 403b plan, and out of my take-home, I save about $200 per paycheck to take care of shorter-term needs (car/condo repairs/assessments, teeth needing crowns, etc.) Since the latter comes and goes but doesn't really grow, I guess that my effective savings rate is 20%. I increase my 403b contribution to match whatever raises I get. I'm hoping to have >$500k in savings when I'm 70 or so, income from which to supplement whatever Social Security stipend the future cash-strapped U.S. government will allow me to have.

I'm hoping that we get some sort of comprehensive national health-insurance plan going here in the U.S., so that I can get some relief on the hundreds I spend every month on diabetes meds and supplies.

 

[Mill]

That's great Mill so you live on about 12k a year, good work. That it about 75% of your income that you save.

yea. My employer pays all expenses, so my savings could even be better, but Im trying to walk the line between save for tomorrow, but live a little today.

 

[thefed]

wow! i feel like a piss poor douche bag after reading some of these responses!

I think I saved 3k in cash last year, 13k in retirement accts, and that's it....so 16k and netted only 50k or so

 

[Amethyst]

wow! i feel like a piss poor douche bag after reading some of these responses!

I think I saved 3k in cash last year, 13k in retirement accts, and that's it....so 16k and netted only 50k or so

Thefed, does that mean you saved 16K out of 50K income? That means you saved 1/3. That's excellent LBYM results, in my opinion.

For everyone, I hate to ask the old question, but we are talking savings %age after-tax, correct?

If:
a. mortgage principal payments "count" as "savings,"
b. I get to count my automatic 7% pension contribution (I don't pay into SS),
then, we are saving half our after-tax income (which, as I previously noted, is only a little more than half our gross income).