2008 Analysis - Spending, Taxes and Savings

[Culture]

I finally completed my 2008 taxes today, and calculated my percentage of gross income [including dividends and interest] that I 1) spend on myself 2) spent on taxes [local property, federal, self employment and SS only] and 3) saved.

Taxes: 24.3%
Spending: 22.9%
Savings: 52.8%

Anyone else done this analysis? I went to work for myself this year and my income increased substantially. This is my best year ever for savings. Typically in the past I have saved about 33% of gross income. I am feeling pretty good about where we are with our plan. If we can hold down any increases in expenses/spending, retirement looks like a lock in 4-5 years.

OTOH, my wife took me to the car show today to look at cars .

 

[OAG]

I think this analysis is done by many here every year.

FWIW and according to MS Money our 2008 percentages are:

Taxes: 7.5% (Only RE Taxes; $0 Income taxes this year, IRC 1341 Recovery)
Spending: 30.4% (Living expenses)
Savings: 62.1% (More spent this year, lower savings)

We intend to increase the spending in 2009 but, by how much, it is hard to tell.

 

[target2019]

I'm not retired. It was an unusual year, with a death benefit, car payoff, and college tution.

Taxes: 23.3%
Spending: 65.5%
Savings: 11.2%

Above does not include 401(k) or 403(b) contributions.

 

[FIREd]

For 2008:

Taxes (income, payroll): 22%
Spending (including all other taxes): 32.5%
Savings: 45.5%

 

[shotgunner]

Savings? I am in the withdrawal phase..... and the market performance has been "withdrawing" a LOT more from my portfolio than I am

2008 - Taxes, Savings and Spending (20%)

 

[audreyh1]

I won't really know until we file our taxes around April 1. I haven't even gotten my 1099s yet, so I don't know for sure qualified dividends, etc.

Savings? Hah! Living off investments.

Spending? I guess I can do it as a percentage of net worth. Gee - do I calculate that from the beginning of 2008 or the end?

Audrey

 

[ziggy29]

If I were to make assumptions about my 2008 tax refund and transfer it to the "savings" category, it's roughly:

Taxes: 17.8%
Spending: 44.3%
Savings: 37.9%

Not bad for a couple of SINKs. Just thinking where it would be if we could finally become DINKs makes me want to vomit at all the lost opportunity. My plan is for the last two numbers to flip-flop in '09 assuming no change to the status quo.

 

[Culture]

Taxes: 24.3%
Spending: 22.9%
Savings: 52.8%

Oops, left health insurance premium out of the spending column. It was a business expense, but certainly should be considered an expense, as I will still be paying it in retirement. So make it:

So make this:
Taxes 24%
Spending 26%
Savings 50%