I just finished compling my end-of-year financial number. I found that in 2005, I saved 42% of my pre-tax income and 52% of my post-tax earned income. Add in unearned income (dividends, interest and capital gains), and I find that the numbers are 70% and 61%. The post-tax numbers are an estimate as I have not finalized my taxes for 2005.
I have the advantage of having a tight-wad working wife in a professional position and only one child, and live in one of the cheapest major metropolitian areas in the country.
Interestingly, this makes me want to spend a little more money, as I think that perhaps I am not spending enought of my income, given that we most likely will not retire until my childs enter college in 6.5 years.
So, for those of you in the accumulation phase, what do you save? Do you find your savings rate to be constant, declining or increasing with time? Mine has definitely increased with time, though I must admit solely as a result of an increasing income, not a decrease in spending.
I have the advantage of having a tight-wad working wife in a professional position and only one child, and live in one of the cheapest major metropolitian areas in the country.
Interestingly, this makes me want to spend a little more money, as I think that perhaps I am not spending enought of my income, given that we most likely will not retire until my childs enter college in 6.5 years.
So, for those of you in the accumulation phase, what do you save? Do you find your savings rate to be constant, declining or increasing with time? Mine has definitely increased with time, though I must admit solely as a result of an increasing income, not a decrease in spending.