Post # 32
I don’t have a consistent cash flow at the moment because I’m building a freelance writing business and also occasionally do some substitute teaching on the side. I’m living with my parents rent-free while I get off the ground and prepare to move closer to SO, so I’m saving every cent that doesn’t pay off my cell phone and credit card each month. Hopefully I’ll start landing some good paying clients once the season picks up a little. The beginning of the year is always dreadfully slow.
Post # 33
@Blue Eyes by the Sea: Story of my life… I don’t understand. Something isn’t adding up…
Post # 34
@Mrs.LemonDrop: We save around 40% of our combined income. A big chunk of that goes toward retirement (maxing our 401k, IRA, mutual funds, etc). We are currently putting money toward the wedding that will be going to savings after the wedding. We plan to put this into a mix of CDs and mutual funds, so its accessible if there was an emergency. We also have a savings account where we put money to save up for “fun” things like new furniture or vacations. That we just keep in a regular low-yield account, but its separate from our other savings.
We are lucky because we can live off my salary alone, which allows us to use FI’s salary for savings, paying off student loans, and fun stuff! But we are choosing to have only one car and to live in a one bedroom condo in order to have that financial flexibility.
Post # 35
- Wedding: August 2013 - Rocky Mountains USA
We each put 15% into our 401ks and max out our IRAs every year (well I have in the past – this will be the first year he does). Beyond that, we haven’t been able to save much money, what with saving for and then spending a downpayment, paying off some credit card debt, and working on student loans…
Post # 36
We save pretty agressively at this point. First I max out my 403(b), which is 38% of my post tax/insurance salary. I also put $100 per month into my Health Savings Account, because we have a high deductible plan (that my husband and I are on). Since my HSA has over $3k in it, some of it is actually in easily accessible investments.
From my take home pay, 20% goes into general savings and 10% goes into savings to be used for vacations. 20% goes into my “fun” checking account that is used for going out, shopping, theater/concerts/movies/presents, etc. The remaining 40% goes into our “essentials” account from which we pay rent, utlities, gas, groceries, car payment, husband’s student loan payment, etc. My husband’s finaces are set up similarly and go into the same accounts except that he doesn’t pay for insurance since he’s on my plan.
So, overall, at least 61% of my post tax/insurance salary goes into some form of savings. We also generally each put $5k per year into a Roth.
We recently decided that if any of our bank accounts get to be over a certain limit we’re going to move the money into stort term investments, so it’s still easily accessible, if we need it, but it’s earning some money. We would like our short term investments to have enough for our anticipated house downlpayment/renovations and 12 months living expenses, when it gets over that any additional money will be put into long-term investments.
Post # 37
We put 6% into FI’s 401k every month and instead of saving, we have been paying off debt. We are starting our savings together next month and after gas, groceries, bills, and extra, we will (hopefully) save around 1,200 a month. I don’t calculate our savings based on percentages, I just calculate the dollar amount we should be saving.
Post # 38
I guess we are kind of lucky. OH earns enough to cover all bills, food as well as having some extra to pay off our debts.
Whatever I earn (I’m only part time so not much!) is ‘spending’ money, so for family meals outs, takeouts (though we shouldn’t), clothes or emergency buys (say the fridge dies). Then, at the end of the month, whatever we didn’t spend from my wages goes to pay some more of our debts.
We figured there is no point saving when that money could go into paying off any debts we have. If we ever need emergency cash (past my wage) we resort into using our credit cards. Not ideal but we haven’t needed to use plastic money in a long time.
Post # 39
We save a minimum of $1,000 a week – usually $1,500 – so that works out to be around $4,500 to $6,500 a month which is about 45% of our annual income.
All of our savings currently sit in a high interest savings account with our bank. My SO is looking into investments for around half and we’ll leave the rest in the high interest savings account – 75% of which is long term savings and 25% which is allocated for ‘splurging’.
Post # 40
I will use gross income percentages.
How much/what per cent of your income do you save each month?
We save 40% of our income.
What do you do with your savings – invest, savings, or both?
Both! 28% goes to pre-tax retirement accounts (some are taxable like 401a, 403b; some are tax free like HSA); 7% goes to post-tax retirement accounts (like Roths). All in all we are maxing six different retirement accounts. They are all set pretty aggressive. 4% is leftover after the bills and it sits in checking for the most part, and that value actually varies month to month, but 4% was my 18 month average.
If you do both, how do you divvy it up?
The first priority is to put away for retirement. We’d like to retire at 50 or earlier. Once we felt we’ve contributed to the point where we don’t have to drastically change our lifestyles (aka we’re not eating Ramen nightly in order to save for retirement, we also don’t drive fancy new cars and I’m pretty adamant about not taking on car payments either), the rest we just save after regular expenses. That pile builds and acts as our emergency fund, big ticket savings, etc.
We don’t have student loans, we have paid off cars, we don’t have plans for kids, and our mortgage is only 11% of our gross income, so that’s how we’re able to do this.
Post # 41
We put 500 cash away each month in a personal savings. Then we each max out our company 401k matches every month which is about 10% combined (company plus personal) for each of us. I imagine that savings amt will seriously diminish once we start paying for daycare in the fall.
Post # 42
Totally didn’t think of this when I first posted, but as a public school teacher I get a state pension, so my biweekly contribution is deducted from my paycheck pre-tax… So I guess I do save for retirement each month, a little less than $500. I just don’t think about it since I never see it. But as for personal savings…. Nope, don’t have much left over for that! Anyways, not trying to whine; I know that I’m lucky to have a state pension. And this system is perfect for someone like me, aka someone who could never save on her own! :p
Post # 43
used to save around 1k or less, but now unemployed, whatever we can save $200, keep in mind that we get paid minimum wage, but we live below our means
Post # 44
@MrsWBS: Is your savings rate higher than your student loan interest rate? Just curious.
We are currently saving about 40% of our monthly income, while simultaneously paying our student loans down aggressively. Our goal is to pay off our loans within the next 4 years. We also put 10% of our incomes into 401ks.
Our only investments are our retirement acconts. We plan on saving up for our house downpayment, then save up 6 months of expenses, then pay even more on our loans till they are gone.
Post # 45
Lots of good savers here. We save a minimum of $500 a month – this is when I’m on clinical placement. When I’m not on placement, I work casual in a hospital (on my off days when I’m not on course) and so we are able to save an additional $1500 a month (depending on how many shifts I pick up, shift/weekend penalties, etc).
Post # 46
I am impressed by all these saving bees!!
I have $25,000 in student loans/credit card debt. I have been paying it down aggressively the last few months, but still feel like I need to save for emergencies and retirement.
each month, $300 goes into a general savings account. I also contribute 6% of my pay ($300 monthly) to my 401k. Once I am mostly debt free I will really ramp up my savings!