What percentage of your gross income do you save?

[SLC Tortfeasor]

How much of your gross yearly income do you save?

 

[yAyA]

I'm currently only saving 10% but I plan to up it to 22% by the end of the year

 

[HFWR]

Around 23%, plus 6% match...

 

[Outtahere]

I save 15% or more to my 401k plus there is a 1% match, 15% to my savings and then any bonuses or windfalls go right to the bank too.

 

[SLC Tortfeasor]

I see some people actually save more than 60% of their gross incomes. I find that amazing. How do you do it? Do you have extremely high incomes? Live like paupers? Already have the house paid off?

 

[Robert the Red]

About 1/3 to taxes, 1/3 for living (including mortgage), and 1/3 for savings (all for retirement goal). If you count the employer match of 5%, pushes up the savings percentage a little.

 

[brewer12345]

Dunno, ask me after bonuses are handed out.

SLC, what is up with the icon? I think its hysterical, but appears to be meaningless.

 

[wildcat]

I am still @ 0% (didn't want to skew the poll) but I imagine the more ya make the higher the gross % saved among us at least. Hope to swim in that pool at some point but I doubt it.

 

[laurence]

I felt reticent voting, because while we will have saved ~29% this year, things seem to be saying we will not be able to maintain that rate. Kudos to those of you able to save more, our mortgage just chews up the income.

I thought about mentioning the fact that I'm in a 20 year fixed instead of a traditional 30 year, and that I think my payments to principle should at least partially count towards savings, and stir up the house as asset vs. liability debate again, but I refrained.

 

[Honkie]

I see some people actually save more than 60% of their gross incomes.  I find that amazing.  How do you do it?  Do you have extremely high incomes?  Live like paupers?  Already have the house paid off?

Just polled in the 60% plus category. The precise figure is 64%. Yes we have high income, but importantly, we mostly live well within it.

Cheers

Honkie

 

[HKMike]

I'm in a similar situation to Honkie (and also living in Hong Kong). We save almost 60% (57% to be exact).

 

[Honkie]

Well spotted HKMike!! (my handle isn't quite as obvious as yours).

Should we let the others know that local taxation means that our net is a minimum of 83% of our gross??

Cheers
Honkie

 

[TargaDave]

Just polled in the 60% plus category. The precise figure is 64%. Yes we have high income, but importantly, we mostly live well within it.

Cheers

Honkie

Honkie, So what percentage for taxes and living? That only leaves 36% for both taxes and living expense. Wouldn't "high income" put you in the 33% tax bracket plus all local taxes?

 

[Honkie]

Honkie,  So what percentage for taxes and living?  That only leaves 36% for both taxes and living expense.  Wouldn't "high income" put you in the 33% tax bracket plus all local taxes? 

Last year I paid less than 8% of gross income in taxes, leaving a little over 28% for living expenses.

 

[azanon]

Wow, those are some really excessive savings rates some of you have. You guys know you cant take it with you when you die, right? Just making sure!

 

[Martha]

I have this very unscientific feeling that most families can get along in the US with about $50,000 a year in income. I know plenty have less and plenty have more, but $50,000 feels like a nice number to me. You won't be able to live in NY or SF or buy a house in San Diego, but you could get along. I think below that number it is very difficult to save and above that number it gets easier.

Am I full of it?

 

[Dawg52]

Last 5 years I have been able to save 50+ % a year. Of course being single, no debt, small house with low expenses helps a lot. Fortunate to have been in good health so not much going to health care. Also, the company I work for has been very profitable so bonuses have been good. Hopefully 2006 will be the same and I can close out my career on a high note.  

Martha, I think that is pretty much true. I can't imagine a family of 4, with mortgage, being able to save very much. I'm sure there are exceptions.

 

[REWahoo]

Am I full of it?

Thankfully we have the Fifth Amendment for situations like this.......

 

[dm]

I spend around 45%, the rest goes into savings and pays taxes.

 

[TargaDave]

I have this very unscientific feeling that most families can get along in the US with about $50,000 a year in income. I know plenty have less and plenty have more, but $50,000 feels like a nice number to me. You won't be able to live in NY or SF or buy a house in San Diego, but you could get along. I think below that number it is very difficult to save and above that number it gets easier.

Am I full of it?

In addition to high cost areas I would think kids and no health care would also put some pressure on the $50k figure. Both taken together would put a lot of pressure on that figure. My guess is that the level of health care coverage for those in the $50k bracket is lower on average than those in the $80k or $100k bracket. Otherwise I agree it's a decent balance point.

 

[SteveR]

Hmmmmmmmmmm.

Taxes=40%
Savings=20% DW and 22% me.
The rest is mortgages (2) and living expenses.

After RE, the overall budget will drop by over 50%.

 

[retire@40]

I have this very unscientific feeling that most families can get along in the US with about $50,000 a year in income.  I know plenty have less and plenty have more, but $50,000 feels like a nice number to me.  You won't be able to live in NY or SF or buy a house in San Diego, but you could get along.  I think below that number it is very difficult to save and above that number it gets easier. 

Am I full of it?

$50K is about right. You won't be able to save much on $50K, but it would make for an average living.

 

[Texas Proud]

Just polled in the 60% plus category. The precise figure is 64%. Yes we have high income, but importantly, we mostly live well within it.

Cheers

Honkie

But with high income comes high taxes.... I would think that you would have at LEAST 25% of gross taken up by taxes, which means you live on about 10% of your income? I think it could be done if you make a whole lot and live like middle class....

 

[Texas Proud]

Well spotted HKMike!! (my handle isn't quite as obvious as yours).

Should we let the others know that local taxation means that our net is a minimum of 83% of our gross??   

Cheers
Honkie

OPPssss missed this one.... now I see

 

[Andre1969]

I answered over 60% because that's about what it's going to be for this year. My income wages will probably come in at around $52,000 this year. 401k will hit the $14,000 max for this year, plus I've been socking away around $1300 per month into mutual funds and I did $4000 into a Roth this year. So that'll be $33,600 invested this year, divided by $52,000, comes out to around 64.5%. Just taking the 401k into account, it comes out to around 27% (and I get a 3% match on top of that)

However, a few disclaimers...
1) my house is free and clear. Or, well it would be, if not for the $100,000 HELOC I took out!
2) I have two roommates, and they buy most of the food, so that helps a lot with living expenses and spending money

I'm probably going to cut back on saving next year, because I've had some fairly large expenses come up, such as building a garage, and car repairs that have drained my checking account. I might try to tap into my Emigrant Direct account to keep up the investing for awhile, but then I might not. Haven't decided yet. I like having that money sitting there in case I really need it...and I might be needing a new roof soon.

If I do cut back on saving though, it'll be the mutual funds where I start first. The Roth and the 401K will be the last things I mess with.