What percentage of your income do you save?

[huruta]

Currently 60% net and 40% gross per POF calculator. Despite these rates, required nestegg still seems terrifyingly large. We started late though not having kids has made our financial lives easier.

[WealthyDoc]

I haven't run my savings rate recently but it is pretty high - even for this group.  I have a 457, 401K, Roth, Sep-IRA and Roth 401k.  I don't want to turn down the match and the tax free growth.  My investment income more than covered my expenses last year so I end up reinvesting most of the dividends, interest, etc.  I suppose I could actually increase my savings rate to 100% and I would be fine.  Reaching FI is awesome and gives one great flexibility.  Keep up the great work guys and you will be there sooner than you realize.

[The White Coat Investor]

PEMDoc wrote:

Are people counting employer match in the % of income saved in this poll, or only “earned” income?

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Absolutely, that's part of your salary. Count it in both the numerator and denominator. Of course, I've never had an employer match, so a non-issue for me.

[EH]

Thanks for the calculator - I've always wondered but been too lazy to calculate! I'm at 31% gross although realistically is higher as I have too much money in cash now (over saving for a major needed home repair), and I'm not quite sure how much cash I will save throughout the year. Will certainly go down if we have kids though.... :/ I live in a very HCOL area. I definitely included employer match - I expect to see all of that money eventually and I'm always surprised at how much of it has vested already.

 

[YYjames]

Using PoF's calculator it's showing me 61% gross savings and 70% net

I am including wife's income as well.

[wideopenspaces]

I count the 14 percent my employer puts in a retirement account for me because I also include it in my total salary. It's a benefit that I earn so I count it :-) We're right at about 30 percent gross income saved. Split between retirement and extra mortgage payments (although heavily favoring retirement). Student loans are paid off and 6 month emergency fund is completed already!

[conniebird]

PhysicianOnFIRE wrote:

PEMDoc wrote:

Are people counting employer match in the % of income saved in this poll, or only “earned” income?

Click to expand…

In my online savings calculator, employer match and profit sharing go into the numerator and denominator. You are earning and saving 100% of that money.

 

Click to expand...

Would be careful to only count it if the amount if vested though, otherwise it's gone when you leave the employer.

[PhysicianOnFIRE]

PEMDoc wrote:

Are people counting employer match in the % of income saved in this poll, or only “earned” income?

Click to expand...

In my online savings calculator, employer match and profit sharing go into the numerator and denominator. You are earning and saving 100% of that money.

 

[DarrVao777]

What match? ?

[conniebird]

PEMDoc wrote:

Are people counting employer match in the % of income saved in this poll, or only “earned” income?

Click to expand...

I'm not...that is not me saving money and most employers have a vesting schedule so I don't even count it as part of my portfolio until fully vested.

[RogueDadMD]

Are people counting employer match in the % of income saved in this poll, or only "earned" income?

[conniebird]

Jealous of the above 20%-ers, but when I think about where I was less than 2 years ago.... things would've gone so much differently ... for the worse! I'm at about 20% gross 1 year out of residency (emergency fund, retirement accounts, extra student loan payments).

[Hatton]

My savings rate is now close to zero.  Why?  I am done.  Good Luck.

If you follow the basic WCI rules one day you too will figure out that you have enough and you can quit saving!!

[tex]

Difficult to make a useful comparison given the large SD of gross salaries here. 20% of an employed FP/pedi salary in a large city is a different story than a private practice sub-specialist in a less competitive market.

[Benjamin]

I really like this post.  It does highlight how the regular users of the forum are a select few who tend to over-represent super-savers. I literally laughed out loud when I saw 40-60% as the highest bar on the graph.  That definitely does not represent the average physician/professional. If I can get up to 30-40% of my gross, I will be super stoked.

 

Unfortunately for me, I am currently at the lowest point in my net worth and savings rate.  I will start my practice next week....finally!