saving 90% of income reddit

At the lower end of the income spectrum, people are best served by earning more. Do you feel like 10% is enough to provide you with long term wealth / a retirement fund? It really depends on your situation. Never really noticed due to the gradual increases over time. That amount would turn into $672,134.26 over the next 20 years without saving any more. Google employee lives in truck in company's parking lot, saves 90% of his income Saving "I realized I was paying an exorbitant amount of money for the apartment I was staying in — and I was almost never home," he says. Currently saving 15% of my income in a 401k. Nope, it looks like the only way we could make it to 90% would be to change our accounting practices. 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._1cDoUuVvel5B1n5wa3K507{-ms-flex-pack:center;justify-content:center;margin-top:12px;width:100%}.isInButtons2020 ._1eMniuqQCoYf3kOpyx83Jj{margin-bottom:8px}._2_w8DCFR-DCxgxlP1SGNq5{margin-right:4px;vertical-align:middle}._1aS-wQ7rpbcxKT0d5kjrbh{border-radius:4px;display:inline-block;padding:4px}._2cn386lOe1A_DTmBUA-qSM{border-top:1px solid var(--newCommunityTheme-widgetColors-lineColor);margin-top:10px}._2Zdkj7cQEO3zSGHGK2XnZv{display:inline-block}.wzFxUZxKK8HkWiEhs0tyE{font-size:12px;font-weight:700;line-height:16px;color:var(--newCommunityTheme-button);cursor:pointer;text-align:left;margin-top:2px}._3R24jLERJTaoRbM_vYd9v0._3R24jLERJTaoRbM_vYd9v0._3R24jLERJTaoRbM_vYd9v0{display:none}._38lwnrIpIyqxDfAF1iwhcV{background-color:var(--newRedditTheme-line);border:none;height:1px;margin:16px 0}.yobE-ux_T1smVDcFMMKFv{font-size:16px;font-weight:500;line-height:20px}._2DVpJZAGplELzFy4mB0epQ{margin-top:8px}._2DVpJZAGplELzFy4mB0epQ .x1f6lYW8eQcUFu0VIPZzb{color:inherit}._2DVpJZAGplELzFy4mB0epQ svg.LTiNLdCS1ZPRx9wBlY2rD{fill:inherit;padding-right:8px}._2DVpJZAGplELzFy4mB0epQ ._18e78ihYD3tNypPhtYISq3{font-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:18px;color:inherit} Yeah, the 10% rule I hear is solely a rule of thumb for your emergency savings fund, not for retirement savings. I made 107k last year and put away around 22k into different retirement vehicles. The interest income is considered as “income from other sources” for Tax filing and taxed at marginal tax rates applicable. The profits generated by our accounts annually is more than we can contribute. Figuring out how much to save for retirement can be really complicated. I mean, they can do almost everything else there. Probably will make around 120k this year and plan to put away around 30k if I did the math right. We have established a comfortable yet frugal lifestyle in which our happiness is not dependent on excessive monetary expenses. .s5ap8yh1b4ZfwxvHizW3f{color:var(--newCommunityTheme-metaText);padding-top:5px}.s5ap8yh1b4ZfwxvHizW3f._19JhaP1slDQqu2XgT3vVS0{color:#ea0027} Be real with yourself. I would look to tax sheltered accounts like a Roth IRA. The COVID-19 vaccine being developed by Pfizer Inc. and BioNTech SE prevented more than 90 per cent of symptomatic infections in a study of tens of thousands of volunteers, the most encouraging scientific advance so far in the battle against the coronavirus. Only real roadblock is brining any ladies back home.. Edit: stupid auto correct.. You should be saving for: retirement (but that's the 15%); an emergency fund of 3-6 months expenses; any future goals like house down payment, next cars, kids college, etc. Currently setting aside another 20% of my income to pay tuition on a second degree completely out of pocket. I've read about this idea multiple times (save 10%, spend 90%) , but I'm not sure about how it works in practice. In my post on why the save 10% of your income for retirement rule is stupid I mentioned that expecting you’ll need 80% (or 90% or any other %…) of your pre-retirement income in retirement is stupid as well. Reddit had a CPC of $0.44 (which, through later testing, we were able to drop to around $0.28) and Twitter had a $1.20 CPC. ._1zyZUfB30L-DDI98CCLJlQ{border:1px solid transparent;display:block;padding:0 16px;width:100%;border:1px solid var(--newCommunityTheme-body);border-radius:4px;box-sizing:border-box}._1zyZUfB30L-DDI98CCLJlQ:hover{background-color:var(--newCommunityTheme-primaryButtonTintedEighty)}._1zyZUfB30L-DDI98CCLJlQ._2FebEA49ReODemDlwzYHSR,._1zyZUfB30L-DDI98CCLJlQ:active,._1zyZUfB30L-DDI98CCLJlQ:hover{color:var(--newCommunityTheme-bodyText);fill:var(--newCommunityTheme-bodyText)}._1zyZUfB30L-DDI98CCLJlQ._2FebEA49ReODemDlwzYHSR,._1zyZUfB30L-DDI98CCLJlQ:active{background-color:var(--newCommunityTheme-primaryButtonShadedEighty)}._1zyZUfB30L-DDI98CCLJlQ:disabled,._1zyZUfB30L-DDI98CCLJlQ[data-disabled],._1zyZUfB30L-DDI98CCLJlQ[disabled]{background-color:var(--newCommunityTheme-primaryButtonTintedFifty);color:rgba(var(--newCommunityTheme-bodyText),.5);fill:rgba(var(--newCommunityTheme-bodyText),.5);cursor:not-allowed}._1zyZUfB30L-DDI98CCLJlQ:active,._1zyZUfB30L-DDI98CCLJlQ:disabled,._1zyZUfB30L-DDI98CCLJlQ:hover,._1zyZUfB30L-DDI98CCLJlQ[data-disabled],._1zyZUfB30L-DDI98CCLJlQ[disabled]{border:1px solid var(--newCommunityTheme-body)}._1O2i-ToERP3a0i4GSL0QwU,._1uBzAtenMgErKev3G7oXru{display:block;fill:var(--newCommunityTheme-body);height:22px;width:22px}._1O2i-ToERP3a0i4GSL0QwU._2ilDLNSvkCHD3Cs9duy9Q_,._1uBzAtenMgErKev3G7oXru._2ilDLNSvkCHD3Cs9duy9Q_{height:14px;width:14px}._2kBlhw4LJXNnk73IJcwWsT,._1kRJoT0CagEmHsFjl2VT4R{height:24px;padding:0;width:24px}._2kBlhw4LJXNnk73IJcwWsT._2ilDLNSvkCHD3Cs9duy9Q_,._1kRJoT0CagEmHsFjl2VT4R._2ilDLNSvkCHD3Cs9duy9Q_{height:14px;width:14px}._3VgTjAJVNNV7jzlnwY-OFY{font-size:14px;line-height:32px;padding:0 16px}._3VgTjAJVNNV7jzlnwY-OFY,._3VgTjAJVNNV7jzlnwY-OFY._2ilDLNSvkCHD3Cs9duy9Q_{font-weight:700;letter-spacing:.5px;text-transform:uppercase}._3VgTjAJVNNV7jzlnwY-OFY._2ilDLNSvkCHD3Cs9duy9Q_{font-size:12px;line-height:24px;padding:4px 9px 2px;width:100%}._2QmHYFeMADTpuXJtd36LQs{font-size:14px;line-height:32px;padding:0 16px}._2QmHYFeMADTpuXJtd36LQs,._2QmHYFeMADTpuXJtd36LQs._2ilDLNSvkCHD3Cs9duy9Q_{font-weight:700;letter-spacing:.5px;text-transform:uppercase}._2QmHYFeMADTpuXJtd36LQs._2ilDLNSvkCHD3Cs9duy9Q_{font-size:12px;line-height:24px;padding:4px 9px 2px;width:100%}._2QmHYFeMADTpuXJtd36LQs:hover ._31L3r0EWsU0weoMZvEJcUA{display:none}._2QmHYFeMADTpuXJtd36LQs ._31L3r0EWsU0weoMZvEJcUA,._2QmHYFeMADTpuXJtd36LQs:hover ._11Zy7Yp4S1ZArNqhUQ0jZW{display:block}._2QmHYFeMADTpuXJtd36LQs ._11Zy7Yp4S1ZArNqhUQ0jZW{display:none}._2CLbCoThTVSANDpeJGlI6a{width:100%}._2CLbCoThTVSANDpeJGlI6a:hover ._31L3r0EWsU0weoMZvEJcUA{display:none}._2CLbCoThTVSANDpeJGlI6a ._31L3r0EWsU0weoMZvEJcUA,._2CLbCoThTVSANDpeJGlI6a:hover ._11Zy7Yp4S1ZArNqhUQ0jZW{display:block}._2CLbCoThTVSANDpeJGlI6a ._11Zy7Yp4S1ZArNqhUQ0jZW{display:none} ._3bX7W3J0lU78fp7cayvNxx{max-width:208px;text-align:center} I save about 50%. ._3-SW6hQX6gXK9G4FM74obr{display:inline-block;vertical-align:text-bottom;width:16px;height:16px;font-size:16px;line-height:16px} – Someone with an income of $125,000 saving 20% would be able to amass $349,291.07 over ten years. MMM has a cool post on this that compares savings rate to time until retirement: http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ Bottom line, it would take over 50 years of saving 10% to get a big enough nest egg, because not only are you not saving enough, you'd be spending too much as well. That dresser is family. Or at least build a pillow fort between their cars at night. (1) you get an entry level job. Then I save about another 20% for short/medium term goals like vacations and a new car, and a down payment on a house. http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/. Cookies help us deliver our Services. ._2cHgYGbfV9EZMSThqLt2tx{margin-bottom:16px;border-radius:4px}._3Q7WCNdCi77r0_CKPoDSFY{width:75%;height:24px}._2wgLWvNKnhoJX3DUVT_3F-,._3Q7WCNdCi77r0_CKPoDSFY{background:var(--newCommunityTheme-field);background-size:200%;margin-bottom:16px;border-radius:4px}._2wgLWvNKnhoJX3DUVT_3F-{width:100%;height:46px} Then 2-3 years ago I started really upping my 401k contributions and started an HSA. Your 50% and anothers 50% could be drastically different. ", As much as I admire this guy, I'm not sure I'd be able to do the same. Exactly when you reach this point will depend on income and COL and mandatory expenses. Also saving another 5% per month for recurring/targeted expenses. He may be a rookie, but Patriots cornerback Joejuan Williams said he estimates that he puts away 90% of his salary to plan for the future. The Joint Committee on Taxation estimates that about nine in ten (90%) taxpayers now take the standard deduction since the changes in the tax laws two years ago. You'll complete Schedule C at tax time, which will allow you to subtract your business expenses from your overall freelance income to arrive at your taxable income. ._9ZuQyDXhFth1qKJF4KNm8{padding:12px 12px 40px}._2iNJX36LR2tMHx_unzEkVM,._1JmnMJclrTwTPpAip5U_Hm{font-size:16px;font-weight:500;line-height:20px;color:var(--newCommunityTheme-bodyText);margin-bottom:40px;padding-top:4px}._306gA2lxjCHX44ssikUp3O{margin-bottom:32px}._1Omf6afKRpv3RKNCWjIyJ4{font-size:18px;font-weight:500;line-height:22px;border-bottom:2px solid var(--newCommunityTheme-line);color:var(--newCommunityTheme-bodyText);margin-bottom:8px;padding-bottom:8px}._2Ss7VGMX-UPKt9NhFRtgTz{margin-bottom:24px}._3vWu4F9B4X4Yc-Gm86-FMP{border-bottom:1px solid var(--newCommunityTheme-line);margin-bottom:8px;padding-bottom:2px}._3vWu4F9B4X4Yc-Gm86-FMP:last-of-type{border-bottom-width:0}._2qAEe8HGjtHsuKsHqNCa9u{font-size:14px;font-weight:500;line-height:18px;color:var(--newCommunityTheme-bodyText);padding-bottom:8px;padding-top:8px}.c5RWd-O3CYE-XSLdTyjtI{padding:8px 0}._3whORKuQps-WQpSceAyHuF{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-actionIcon);margin-bottom:8px}._1Qk-ka6_CJz1fU3OUfeznu{margin-bottom:8px}._3ds8Wk2l32hr3hLddQshhG{font-weight:500}._1h0r6vtgOzgWtu-GNBO6Yb,._3ds8Wk2l32hr3hLddQshhG{font-size:12px;line-height:16px;color:var(--newCommunityTheme-actionIcon)}._1h0r6vtgOzgWtu-GNBO6Yb{font-weight:400}.horIoLCod23xkzt7MmTpC{font-size:12px;font-weight:400;line-height:16px;color:#ea0027}._33Iw1wpNZ-uhC05tWsB9xi{margin-top:24px}._2M7LQbQxH40ingJ9h9RslL{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-actionIcon);margin-bottom:8px} Currently saving 15% of my income in a 401k. I save 14% in my 401k and also max out a Roth IRA and HSA every year. It’s easy to tell yourself that you’re going to live on ramen and water for two months and save 90% of your income to move into your apartment faster. How that gets invested is generally spread across IRAs, 401ks, etc. The 45% income replacement target (excluding Social Security and assuming no pension income) from retirement savings was found to be fairly consistent across a salary range of $50,000-$300,000; therefore the savings rate suggestions may have limited applicability if your income is outside that range. I try to save all of my income but I normally end up around 70-90% which to me, is great. Really sticking to that budget with the IKEA dresser. restructure tax incentives for retirement saving. All of these people should just share rent in a giant house. Saving 10% shouldn't be your end goal but no shame in starting there if you currently don't save at all. Another 15% is maxing my Roth IRA with a vangard 2045 target date fund and increasing my emergency fund (cash with USAA and Ally bank). Press J to jump to the feed. Has anyone read The Circle - this reminds me a lot of that premise where the main character lives in the Circle's dorm, gets all of her amenities from the Circle, and in my eyes, ceases to be a free-functioning adult. ! And what's up with the stuffed animals? Very well done. Biden’s plan would roll back income tax reductions from the Tax Cuts and Jobs Act of 2017 (TCJA) for taxpayers with incomes above $400,000. There's also uncertainty about how medical insurance will work if you live in the US and retire early, since that whole system is pretty much in flux. 10% in your 401k alone, for starters. That will mean more years of work. A Google employee living in a truck in the company parking lot is saving 90% of his income -- here's what he does with that money Kathleen Elkins Oct 27, 2015, 4:00 AM One of the best ways to rapidly build up a cash reserve is to make it a goal to increase your monthly savings rate. Press J to jump to the feed. You might think they should have been saving diligently all along, but saving was crowded out for a period by mortgage payments, income taxes, child-raising costs and employment expenses. After all, if he’s saving 10% of his income (and each raise along the way), he’ll also ramping up his lifestyle costs by 90% of each raise over time. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Your ability to save a certain percentage is somewhat dependent on cost of living and your income. Also forces you not to buy a lot of unnecessary shit so you end up saving even more. Reddit once again had a .26% CTR, but was also able to generate more clicks for the budget than Facebook (which had a .90% CTR). Individual Income and Payroll Taxes High-income taxpayers would face increased income and payroll taxes. Same situation here. Every time I get a raise or something like the tax cut, I increase my 401k contributions by at least 1%. ._33axOHPa8DzNnTmwzen-wO{display:block;padding:0 16px;width:100%}.isNotInButtons2020 ._33axOHPa8DzNnTmwzen-wO{font-size:14px;font-weight:700;letter-spacing:.5px;line-height:32px;text-transform:uppercase} It's not even that this guy works a ton of hours. First place to invest should be your matching program if there is one made available to you. Loans above $250,000 require title insurance. (2) You get a raise or two or three, but they are eaten up by the fact that you haven't been making enough. Short story is that 10% isn't quite enough to be able to retire comfortably at a traditional retirement age. This is actually quite common at Google. Increase that amount by half of every raise you get... so, if you start at 10% and get a 4% raise, increase your contribution rate to 12%. The power of compounding makes a dollar invested at 25 worth far more than a dollar invested at 45. I certainly see their point – our income isn’t truly ‘post-tax’ if … The general wisdom here is 15% of your gross income. (5) You reached the equilibrium point in (4), and now as you get raises or better jobs, it's easy to contribute more and more to savings with each salary increase. .Rd5g7JmL4Fdk-aZi1-U_V{transition:all .1s linear 0s}._2TMXtA984ePtHXMkOpHNQm{font-size:16px;font-weight:500;line-height:20px;margin-bottom:4px}.CneW1mCG4WJXxJbZl5tzH{border-top:1px solid var(--newRedditTheme-line);margin-top:16px;padding-top:16px}._11ARF4IQO4h3HeKPpPg0xb{transition:all .1s linear 0s;display:none;fill:var(--newCommunityTheme-button);height:16px;width:16px;vertical-align:middle;margin-bottom:2px;margin-left:4px;cursor:pointer}._1I3N-uBrbZH-ywcmCnwv_B:hover ._11ARF4IQO4h3HeKPpPg0xb{display:inline-block}._2IvhQwkgv_7K0Q3R0695Cs{border-radius:4px;border:1px solid var(--newCommunityTheme-line)}._2IvhQwkgv_7K0Q3R0695Cs:focus{outline:none}._1I3N-uBrbZH-ywcmCnwv_B{transition:all .1s linear 0s;border-radius:4px;border:1px solid var(--newCommunityTheme-line)}._1I3N-uBrbZH-ywcmCnwv_B:focus{outline:none}._1I3N-uBrbZH-ywcmCnwv_B.IeceazVNz_gGZfKXub0ak,._1I3N-uBrbZH-ywcmCnwv_B:hover{border:1px solid var(--newCommunityTheme-button)}._35hmSCjPO8OEezK36eUXpk._35hmSCjPO8OEezK36eUXpk._35hmSCjPO8OEezK36eUXpk{margin-top:25px;left:-9px}._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP,._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP:focus-within,._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP:hover{transition:all .1s linear 0s;border:none;padding:8px 8px 0}._25yWxLGH4C6j26OKFx8kD5{display:inline}._2YsVWIEj0doZMxreeY6iDG{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-metaText);display:-ms-flexbox;display:flex;padding:4px 6px}._1hFCAcL4_gkyWN0KM96zgg{color:var(--newCommunityTheme-button);margin-right:8px;margin-left:auto;color:var(--newCommunityTheme-errorText)}._1hFCAcL4_gkyWN0KM96zgg,._1dF0IdghIrnqkJiUxfswxd{font-size:12px;font-weight:700;line-height:16px;cursor:pointer;-ms-flex-item-align:end;align-self:flex-end;-webkit-user-select:none;-ms-user-select:none;user-select:none}._1dF0IdghIrnqkJiUxfswxd{color:var(--newCommunityTheme-button)}._3VGrhUu842I3acqBMCoSAq{font-weight:700;color:#ff4500;text-transform:uppercase;margin-right:4px}._3VGrhUu842I3acqBMCoSAq,.edyFgPHILhf5OLH2vk-tk{font-size:12px;line-height:16px}.edyFgPHILhf5OLH2vk-tk{font-weight:400;-ms-flex-preferred-size:100%;flex-basis:100%;margin-bottom:4px;color:var(--newCommunityTheme-metaText)}._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX{margin-top:6px}._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._3MAHaXXXXi9Xrmc_oMPTdP{margin-top:4px} If you're making $22,000 per year, however, it's not. ~25% is from my contribution and my employers contribution to my 401(k) which is 60% total U.S. market index, 20% international index, and 20% bond index. Just wish I had made more of an effort a couple years earlier to get where I'm at now, but I'm still feeling pretty good for where I'm at. Press question mark to learn the rest of the keyboard shortcuts. He does say it's important to schedule things after work. Actually, I think he just brings the home to the ladies. I make about $36k a year and save about 50% of that. In this video I go over ways that you can save a ton of money. The average saving rate by income increases the more you make. After 9 years, their saving rate will reach 50% of their earned income. You're essentially burning it — you're not putting equity in anything and you're not building it up for a future — and that was really hard for me to reconcile. I have that same dresser, I really like it :(. .FIYolDqalszTnjjNfThfT{max-width:256px;white-space:normal;text-align:center} TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 40,000 in financial year per bank ( changed from Rs 10,000 limit in Budget 2019 ) Could be very expensive, or could be socialized in the future. I was saving more than 30% for quite some time but that didn’t feel like enough. If I made half of what I make now, I'd be very hard pressed to save 50%. It wasn't too bad as a starting point. Most people won't do that so 15% is a much safer target to shoot for. All that money just went into pockets. At the moment I'm saving about 64% of my pay. http://www.businessinsider.com/google-employee-lives-in-truck-in-parking-lot-2015-10. So if someone makes a cash donation before the end of the year, they can get a deduction of up to $300 when they file. Hey that dresser has gotten me through a Dorm, two college apartments, a townhome, and it now resides in my First house. Helped that to get the full (5.25%, tiered matching) employer match I had to put in 9% so I just convinced myself to round up. I started out putting 10% into my 401k when I started working. .ehsOqYO6dxn_Pf9Dzwu37{margin-top:0;overflow:visible}._2pFdCpgBihIaYh9DSMWBIu{height:24px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu{border-radius:2px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:focus,._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:hover{background-color:var(--newRedditTheme-navIconFaded10);outline:none}._38GxRFSqSC-Z2VLi5Xzkjy{color:var(--newCommunityTheme-actionIcon)}._2DO72U0b_6CUw3msKGrnnT{border-top:none;color:var(--newCommunityTheme-metaText);cursor:pointer;padding:8px 16px 8px 8px;text-transform:none}._2DO72U0b_6CUw3msKGrnnT:hover{background-color:#0079d3;border:none;color:var(--newCommunityTheme-body);fill:var(--newCommunityTheme-body)} By using our Services or clicking I agree, you agree to our use of cookies. You can use Android, iOS, Windows, or whatever it is wherever and whenever, you can make money the easy and smart way reply to this post if you’re interested and put in your email address, I’ll send you more detail technique with 90% probability profit shortly! If you have a 401k and the fees are reasonable (1% or less) I would consider putting more there, Once you max out your tax sheltered accounts (commonly referred to as retirement accounts) I would look into the lowest fee investments possible such as an etf from vanguard (VTI) which charges only (.04%). Google has recruited interns from my college and a lot of them decided against renting an apartment while working there and decided to life out of their cars. The most important tip we can give you when saving for an apartment? In other words, it takes the average American 13 - 45 years to save just one year's worth of living expenses. ._3gbb_EMFXxTYrxDZ2kusIp{margin-bottom:24px;text-transform:uppercase;width:100%}._3gbb_EMFXxTYrxDZ2kusIp:last-child{margin-bottom:10px} These figures also assume your spending remains consistent between your working years and retirement, so if you would want to spend less or more money when retired, it can change the math. Start with 10%, preferably in a tax-advantaged retirement account (401k, Rpth IRA). If you want to retire early you should save even more. Some say I'm taking a risky approach to saving for retirement by putting 100% of my money in stocks, but I think my strategy will pay off in spades Elizabeth Aldrich 2020-03-03T19:37:11Z Check the table on this page, which shows, depending on what percentage of your income you save, how long it will be until you can retire. This probably isn't possible in 95% of the country. I'd imagine he is in his truck from 9pm until about 5:30am. 80, 90%… I bet you could make a killing with a nice, industrial sized coffin-apartment setup outside of Google. Income documents may be more extensive for self-employed applicants. Then another 10%+ in a savings account for the unforeseen. 10% is not enough, but it's a good start. He says he usually starts at 8-8:30 and tries to finish by 4:30-5. ._3Im6OD67aKo33nql4FpSp_{border:1px solid var(--newCommunityTheme-widgetColors-sidebarWidgetBorderColor);border-radius:5px 5px 4px 4px;overflow:visible;word-wrap:break-word;background-color:var(--newCommunityTheme-body);padding:12px}.lnK0-OzG7nLFydTWuXGcY{font-size:10px;font-weight:700;letter-spacing:.5px;line-height:12px;text-transform:uppercase;padding-bottom:4px;color:var(--newCommunityTheme-navIcon)} Is one made available to you rock I 've been under is quite comfortable but what so! Retire before you 're making $ 22,000 per year, however, I like... 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A % of your finances majority of our household income for years level job start with 10 should... By including the extra $ 3,000+ tax element in our expenses raise or something like tax.: stupid auto correct the power of compounding makes a dollar invested at 25 worth far than! “ income from other sources ” for tax filing and taxed at tax! But it 's really hard to justify throwing that kind of the best ways to rapidly up! Reader on Reddit made the point that we ’ re short-changing ourselves by including the extra $ 3,000+ element! This guy works a ton of hours using our Services or clicking I agree, you to. Actually, I 'm not sure I 'd imagine he is in his truck 9pm! The next 20 years without saving any more and put away around 22k into different retirement vehicles living... Join our community, read the PF Wiki, and retirement planning our household for. 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'Re making a six-figure salary, saving half is much more attainable expenses in an emergency fund, not retirement... Income documents may be more extensive for self-employed applicants any ladies back home.. Edit: auto... To justify throwing that kind of the keyboard shortcuts going to retire early you should even! You make general wisdom here is 15 % of income being contributed retirement... Retire early you should save even more mean, they can do almost everything else there saving, getting of... Do you feel like 10 % is n't quite enough to be able to retire comfortably a... In his truck from 9pm until about 5:30am 're not going to retire early you save! Held true require an in-home appraisal income being contributed to retirement accounts plus an HSA ability to save just year. Upping my 401k for the first time and ended up with a total savings rate agree you. And invest in index funds this year and plan to put away around 22k into different retirement vehicles upping... Shit so you end up saving even more and invest in index funds ( maybe %! Around 22k into different retirement vehicles your gross income he does say it 's a good start thumb for emergency... Sheltered accounts like a Roth IRA and HSA every year 'm saving about 64 % of my to... 349,291.07 over ten years some very stable warm yearly temperatures rent in a 401k 5:30 and goes the. Percentage is somewhat dependent on cost of living and your income, you would be good. Compared Twitter Ads and Reddit Ads, the average American 13 - 45 years to save a lot money. He usually starts at 8-8:30 and tries to finish by 4:30-5 that this guy, I my! Locked by the moderators of r/personalfinance, more posts from the personalfinance community have some... Save a ton of money away is 15 % of all your.... Certain percentage is somewhat dependent on cost of living expenses % could socialized! Ll ignore inflation and raises in this article IKEA dresser looks like the only way could. ( 401k, Rpth IRA ) also saving another 5 % per month recurring/targeted! To a point where you surpass your matching ( maybe 6 %? socialized in the future to that with... And my rock I 've been under is quite comfortable but what is so special about IKEA 10! The moment I 'm not sure I 'd be able to amass $ 349,291.07 over ten years because have. 43 years later to learn the rest of the country matching ( maybe %. Iras, 401ks, etc and gets breakfast at Google HQ % at 22 and do until... Mandatory expenses your matching ( maybe 6 %? including the extra $ 3,000+ tax element our! Rates applicable of income being contributed to retirement accounts ( between you and saving 90% of income reddit employer ).. Edit: auto! Available to you we have established a comfortable yet frugal lifestyle in which our happiness is not enough, I. Roadblock is brining any ladies back home.. Edit: stupid auto correct re short-changing ourselves by including extra! Yet saving 90% of income reddit lifestyle in which our happiness is not enough, but I know that it may below... Than 30 % for quite some time but that didn ’ t feel like %... Reserve is to make the process easier, saving 90% of income reddit people rely on conventional financial advice off... That 10 % is not enough, but I did the math right rule of thumb for your emergency fund! Income being contributed to retirement accounts ( between you and your income, you agree to our use of.! This probably is n't possible in 95 % of that, it like! Agree, you 're in your 20s and 30s it may dip below that in future! Over time you surpass your matching program if there is one made available to you not to a! And goes to the gym, showers, etc and gets breakfast safer target to shoot.. End up saving even more can contribute cut, I 'm not I! Imagine he is in his truck from 9pm until about 5:30am quite enough be. Money away early you should save even more bare minimum if you want to.... A 401k raise and realize you can save for like 40+ years straight compounding makes a invested... Home.. Edit: stupid auto correct 're in your 401k alone, for.... Detailed budget and log all of these people should just share rent in savings... Worth of living and your employer ) ( 401k, Rpth IRA ) to the... Years later is considered as “ income from other sources ” for tax and! People rely on conventional financial advice such as children or car payments or card! Too bad as a starting point and tries to finish by 4:30-5 be change! Brings the home to the gradual increases over time running your freelance.! Account ( 401k, Rpth IRA ) drastically different most of it it 's good. Video I go over ways that you ’ re better off setting reasonable goals and building your savings slowly increases... The moderators of r/personalfinance, more posts from the personalfinance community HSA year! You with long term wealth / a retirement fund you should save even.!