How much are you saving?

[S]

Hey guys, I'm wondering what percentage of your income you are managing to save. I believe Jacob recommends at least 50%. Do you calculate that before or after taxes? I try to use this as a rough guide of how well I'm doing. Once I pay off the second mortgage on my house in September I'll be at 45% after tax.

[NYC ERE]

I'm only two weeks into my five-year plan* and have--at least on paper (Excel)--cut my expenses by almost 50%, with a plan to scale that down by another 33% from the reduced amount in the next year.
I get all my income from my incorporated business, from which I collect a salary and disbursements--therefore my income varies from month to month and year to year. However, assuming I meet my income goals, which I've set at 80% of last year's income to give a margin of [error?], I will save 65% of my post-tax income--this is how Jacob calculates it--until I cut that last 33% out of my expenses, at which point I will save 80% post-tax. That last 33% will come from splitting rent on my apartment (roommate≤SO).
Mind you, post-tax in NYC is a significantly diminished number, especially for business owners/self-employed.
*as mentioned in another thread, I proofread Jacob's book and, towards the end, was convinced of ERE's value as a goal rather than just a thought exercise.

[murpheyw]

59% after tax (family of 4)

[Steve Austin]

Presently 74% post-tax (just happened to have calculated it several days ago), but am aiming to boost it above 80% within a couple of weeks as I move to a much cheaper living arrangement. Will report here when I have the new figure.

[Kevin M]

We were at about 33% before my wife quit her job to stay home with our 2 kids in June. We're probably stuck at 10-15% for a few years, barring outside income or a new job.

[JohnnyH]

80-100%... When I'm disciplined, my investment income covers my expenses.
Unfortunately, recently I've been dealing with dissatisfaction over my FT excessive buying electronics, drinking, gifts, eating out, and taking vacations:(
I've mostly recognized this and adapted, however... I should make a thread on dealing with burnout.

[RobC]

54% - 65% after tax, depending on if you count moneies payed to the canadian pensionplan and my works pension plan.

[George the original one]

I went from 20% after-tax to 40% after-tax at the start of 2010.
Counting pre-tax is no basis for comparison as you never actually have that taxed money and tax brackets vary.
[Now having said that, there's another 6% pre-tax that is a mandatory pension deposit... I've never calculated what that would be post-tax]

[Q]

Post tax excluding 401k is around 70% maybe, with the other 30% going to expenses and "fun". I would have to sit down and do the math and my numbers would probably change a lot maybe...

[akratic]

77% average in 2010

81% last month

89% was/is my "plan"
after-tax

[Matthew]

I spend <%13 before taxes

I spend >%32 after taxes

so I am only saving %68 when view as after tax money

[Ralphy]

Been saving about 50% of after-tax income. Wish it was a lot higher - I'll blame low income and the fact that I still have a car.

[JustChristine]

I'm right at 50% after tax. I'm looking at ways to increase that but it won't be anything too dramatic given my current living situation.

[Q]

Well, according to my CC that I use for nearly everything, and factoring in rent, I have saved about 20% of my net after.
Shameful. I do max out my 401(k) and whatever amount gives me a tax break for my IRA. But, after reading all the other info in the forums lately, I should just put in 5k and be done with it.

[OurLifeInc.]

My wife and I are right around 47%, give and take a few percentage points each month. Soon my car payment will be gone (will never buy a new car again...) and we would like to trim from other areas as well. Our goal would be to get up to around 60% and then evaluate from there.

[Concojones]

@all: Jacob's saving rates are after-tax & including 401k.
I got a well-paying job after college and saved 50% after-tax, with little effort. My next job payed a lot less, but I've still managed to save 50%, mostly by seeking out very cheap housing. When I go back to earning more, I may either save the extra money, which would bring me to an 80% ballpark, or loosen up and 'only' save 50%. Chances are I'll end up somewhere in between. First I need to actually GET that better paying job, though!

[ScottfromMenominee]

I managed to get to 60% of my net pay after abandoning some frivolous services, such as cable TV and restaurant meals. I've been following the recipes on the site, too, and only spent $7.00 for groceries last week. (Maybe a little more this week.) I will get closer to 75% after my cell phone plan ends this month and my band gets more gigs towards the end of the year. Next year, I may abandon my employers' health plan for a HDHP with a HSA. I'm able to put 10% into my 401k as well, pre-tax, of course. I'm still stuck on my broad band internet, because of video streaming speed and quality, and my car, due to the band and my workplace. I'm looking at about 5 years for ER, with an inexpensive house purchase in a year or so.

[NYC ERE]

I should note that I "cheat" a bit by having my business pay for my cell phone, catastrophic health insurance, and transportation (subway/bike) costs.

[Concojones]

@NYC ERE: I would call that being smart
P.S. Maybe I shouldn't have proclaimed that 401k contributions were included in Jacob's saving rate. I'm not sure. It's probably clearer to define savings as net income minus spending.

[Bytta]

My income fluctuates every month depending on the size of my commission and AUD/USD exchange rate. On annual basis, my husband and I save around 55% after tax. We don't contribute to pension account (or superannuation) because the employers are required to contribute 9% on top of salary. So, if we count that in, the savings amount is 64%.
After the big move overseas, there will be a massive drop in expenses (down by 66%) and income (my husband freelancing). The savings percentage will reach 75% but the amount will pretty much stay the same.