I hear people say you should ave 10% or 15% or whatever.
Do you consider your company match as a % of how much you save?
Say you put away 5% and you company matches 5%. Do you consider that "saving" 10%?
Do you consider your company match as a % of how much you save?
Say you put away 5% and you company matches 5%. Do you consider that "saving" 10%?
Because my match vested two years ago (the first match I’ve had out of four different jobs), I now count it as part of my portfolio, but I usually don’t include it when I calculate my savings efforts. To me what matters is my fiscal discipline, and I want my current numbers to be as comparable to my past efforts and opportunities as I can make them.
My average annual savings rate of pre-tax income is 27.6%, with 2012 reaching 43.8%. My average annual savings rate of post-tax income is 38.4%, with 2012 reaching 60.5%. As of last year, my DW has recently been saving a similar amount. Having recently replaced the 12 year old car we had however, I don’t expect 2013 to be quite as good a year.
You have kids? That is quite a savings rate.
What matters isn't so much a percentage, it is saving enough to fund your spending from the day you stop working. If you are setting aside 5% of your salary, that means you are spending the other 95% (including taxes), so you're going to need to save more or spend less later in life.I hear people say you should ave 10% or 15% or whatever.
Do you consider your company match as a % of how much you save?
Say you put away 5% and you company matches 5%. Do you consider that "saving" 10%?
What matters isn't so much a percentage, it is saving enough to fund your spending from the day you stop working. If you are setting aside 5% of your salary, that means you are spending the other 95% (including taxes), so you're going to need to save more or spend less later in life.
I hear people say you should ave 10% or 15% or whatever.
Do you consider your company match as a % of how much you save?
Say you put away 5% and you company matches 5%. Do you consider that "saving" 10%?