How much are you saving?

[Matt]

50% after taxes. We're working on paying off the house. With the mortgage out of the way, it'll be more like 70%. Of course, after we own the house, my wife wants to quit her job. But...maybe if we move under the bridge down the street our expenses will drop to zero and we can both quit.

[JohnnyH]

Wow, I stand much worse if considering taxes... Generally I only like to think about taxes 1 day a year. Where I get drunk and cry on the floor.

[WillyBLaw]

Only 25% right now. $600 a month student loan bill is kicking my ass.

[Maus]

40% post-tax, but I also max out 401(k).

[Q]

Figured I'd rank at the bottom. heh

[George the original one]

Results so far: 55 mean, 54.5 median, 80 max, 15 min
(If you gave a range, I took the lower end)
OK, so now I have to figure out how to save another 10% if I want to be above average

[HSpencer]

I am sort of lost on this one,
We live on about one fifth of our monthly cash flow. This means that four fifths of cash flow are non-obligated each month. Do I put the four fifths into savings accounts? Yes and no. Right now I have too much cash in the bank at <3% working for me. I want to remain mainly liquid in cash for the future. I actually have a $50,000 emergency fund that is getting me <3%. 50K is too large for an emergency fund and I need to change that, buy CD or whatever. Being 65 and newly fully retired, I want cash to fund my "it's finally time for it" stuff. No homes or cars to buy, no obligations, nothing material or consumer type items needed.

So I have retired on one fifth of my post retirement cash flow. This is for normal expenses, food, electric, water, phone, clothing, taxes, insurance, and so on. The other 4/5ths is non-ob'd, yet spendable when the time comes. That is why I don't want it tied up in something where it would take a penalty to get to it.

So I will say I save without trying at least 60-70% post tax, but will not always do that.

[ktn]

I seem to be doing 58% over the past 5 yrs, net. Lowest was 46%, best was 70%.
Keeping records have really helped - for example, I see a direct correlation between days spent on work travel and savings rate (thanks to the wonderful per-diems they pay here in Europe). I find that I need only about 20% of that daily per-diem to live and eat nicely when I am traveling on business. I disliked the expenses-only system prevalent in USA -people like me only helped the company save money. On the other hand, I notice that money spent on personal travel takes a nice chunk out of potential savings. I love to travel and will probably continue, but it does make it easier to decide if a trip is worth it.

[firefighter]

50% before taxes.

[dan23]

>85% post tax + max out 401k. I am not counting health care from employer or transportation allowance from employer. If I had to pay these myself I would have a big drop.

[aquadump]

Historically, I was at 50% post-tax for the last four years, until I made this graph (and had an ERE wake up call).


To note, this is a 4% withdraw rate.
I think I will be at 72% post-tax savings this month.

[jacob]

I wonder whether this aha-inducing graph works strictly for engineers or whether it's generally applicable.

[NYC ERE]

@Dan: that is really impressive. care to share some details? (city, income bracket, living situation) I am a high earner and my business pays for some of my stuff, but I'm not sure I'll ever get to 85%--that is, unless you share your secrets!
@Jacob: I think anyone who can read a graph would be very motivated by that one. That, coupled with feasible instructions on how to save that much.

[jacob]

@NYC - Well, I'd say, both that graph (very similar) and instructions are in book#1. I'm brainstorming what to put in book#2 [to hit the demographics that #1 didn't cover], but I'm probably getting ahead of myself. I'll wait until #1 comes out to really figure out what to put in #2.

[dan23]

@NYC ERE - I live in a big city and don't have a car. I own a tiny studio apartment (no mortgage). I'd be a little below 70% if I didn't own my apartment (and rented the same apartment). I lived in a cheaper place while saving for my apartment. I cook all my food. My income is above average, but not banking level salary. Food is my highest expense after maintenance. I expect my food bill to go up as I increase greens in my diet. I travel once or twice a year staying by family or hostels so travel is not very expensive. I don't go out to bars very often which it a big expense for many in cities.

[Night Runner]

I need to crunch the numbers on this one, but I guesstimate that I save about 60% of my after-tax income. And when I say "save," I mean "invest" - and rather aggressively.

[Carlos]

I only started tracking my savings closely after following Jacob. Last year I saved 65% and this year my target is 69% of my after-tax income.
My goal now is to make more conscious spending decisions - such as reducing cell phone or cable expenses and redeploy the funds to things like travel or hobbies. I want to try to maintain my relative lifestyle while my income increases over the next couple of years.

[aquadump]

@jacob, I don't think that plot would offer much inspiration to those stereotypical engineers who "deserve" to spend. However, the plot may work better for the interested person who is ready to receive it.
I think plots, in general, can be the most dense way to transfer abstract information. I really like Edward Tufte's work in visualizations.

[Mike R]

Is there any way to re-post the graph that was/is in rePete's post of a few days ago? I cannot view it from my PC, not sure if it's just me or not.
Thanks in advance.

[George the original one]

@Mike R - I couldn't see the chart yesterday from home, but today it's visible from my work computer. Don't know why.