Early Retirement Extreme Forums

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.

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.

59% after tax (family of 4)

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.

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.

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.

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

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]

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...

77% average in 2010

81% last month

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

I spend <%13 before taxes

I spend >%32 after taxes

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

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.

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.

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.

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.

@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!

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.

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.

@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.

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.