How much did you save in 2021?
I review my financials at the end of the year and track what percentage I'm saving and what I'm spending money on, etc. I'd like to think I'm pretty disciplined about saving and figured I'd share high level statistics to see how I compare to WSO.
Background: I live in a pretty average COL area (think Dallas/Miami but with state income taxes), 2.5 years in PE, am single, still rent an apartment with my roommate from college, no credit card debt, small car note with 4 yrs left, and I lever my co-investments.
- Saving percentage: 58% of net income (post-tax), ~40% of gross (pre-tax)
- Income besides job: pretty low at ~$ a year which is not enough to cover rent... Two holdings: private sub. debt (yielding 12%) and a really small dividend portfolio that I assembled during COVID (pays 10% of cost; yield is closer to 6% now IIRC)
- Top-3 expenses: top category was rent (12% of net income), going out for drinks / food (11%; thinking of this is as "pent-up demand" from COVID as it's usually HSD), and travel (3 domestic vacations in 2021; 6%)
- Wealth: my net worth is equal to ~10x my annual spending.
- Leverage: my (real) assets are stocks (75% ETFs; 25 individual stocks), co-invest stakes, and a very small crypto portfolio. My liabilities are a car note (2.8% APR), debt from levering co-invest (~5.5% PIK), and a $10K interest-free loan from undergrad. Ratio @ market value (excl. crypto) is 5 to 1. The ratio improved materially during COVID as asset prices swelled.
- Plans for this year: been given the nod for a promotion in six months. Once that's official, I'll probably move into a single unit at year-end. Will likely undertake 1-2 new co-invest positions. Besides that, I don't plan on any other lifestyle changes, but know my expenses will still increase due to inflation. When I redo my budget, the goal is for my saving percentage to increase even though expenses are increasing nominally.