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saving 50%

January 9th, 2018 at 08:17 am

Lately I've been reading and hearing a lot about saving 50% of your income. I decided to calculate if doing so was feasible with my current income and basic expenses.

Current retirement savings rates:
- 6% of gross to 401k
- 4% of gross to HSA (counts as saving assuming I don't need any of this for medical expenses)
- 2% of net to Roth IRA

Saving 50%, after rent, cell phone, home internet, average electric bill, car insurance, car tabs, and renter's insurance, I'd have:

$455 per month left for everything else.

I need to think more about this.

8 Responses to “saving 50%”

  1. Rachael777 Says:

    let us knwo what you decide... interesting challenging concept

  2. rob62521 Says:

    Interesting idea, but is it doable?

  3. snafu Says:

    While 50% needs, 30% wants and 20% savings were a typical break-out last century, I suspect 50% would be doable for minimalists. In your 'savings' category, you'd likely include SS if it's a deduction. While controversial, I consider Term Life Insurance in my 'savings' category.

  4. kashi Says:

    rob62521 - Realistically, probably not. I need to put more thought into this to figure out how close I can get to 50%. I really don't want to be tied to a desk for another 30 years.

    snafu - I hadn't considered SS - great thought!

  5. crazyliblady Says:

    How about pet costs, gifts, student loan payments, credit card payments, car registration/taxes, car maintenance, life insurance, and other irregular expenses?

  6. kashi Says:

    CLL- yes, that $455 would go toward everything else not mentioned above. Pet costs, groceries, gasoline, etc. I don’t have student loans (yet), credit card payments, or life insurance other than what is provided by my job. But I totally understand what you’re saying.

    Side note, I just had my hair cut and my stylist (single, same age, significantly higher income) saves 50%. I need more income.

  7. PatientSaver Says:

    It's great that you're thinking about this now and realizing you "don't want to be tied to a desk for the next 30 years." Where there's a will, there's a way, and if this is important to you, I don't doubt you will find a way to make it happen.

    Heck, if you can't do 50%, 40% or 30% would still be outstanding.

  8. kashi Says:

    PS - In truth I haven't wanted to be tied to a desk since I started working (and since I started this blog in 2004)...but such is life. I tried owning my own business but it didn't work out. You're right - even 30% would be great. I realized that I was up to 30% for a while last year.

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