Comments (96)

Apr 22, 2018

Used to save a paltry amount (<100 a month) because I was in the BO and wasn't making much. Hoping to increase that too 3-400 a month this year.

This does not include my 401k match

Apr 22, 2018

3k a month as a 1st yr analyst

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Apr 22, 2018

Well this is BS

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Apr 22, 2018

This is very possible, ~1k per paycheck right into a savings account, and a 10-15% 401k contribution plan will get you around this number (as a first year 70-85k analyst)

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Apr 22, 2018

70k

After tax he got about 40k

. 3k means he is saving 36k a year living on 4K a year. It's possible but means he's living with mommy and daddy and a boring fuck who does nothing.

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Apr 22, 2018

85K i got lucky

I don't live with my parents nor rely on them for anything. (Rent is $950 in a major US city, w/ own bedroom and bathroom - lucked out with an elderly tenant who hasn't gotten his rent raised on him).

I am pretty boring but thats because my shop is known for being a sweat shop

I don't eat anything I can't expense and thats not really hard seeing as I can expense $25/day Monday through Sunday

Not counting 401K because I don't invest in the 401K

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Funniest
Apr 22, 2018

85k is not lucky, just means you aren't back office... nice. The other smuck who said 70k obv cant figure this out that's why he is an internal auditor.

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Apr 22, 2018

what about it is bs buddy? do i need to draw it out for you?

What concert costs 45 cents? 50 Cent feat. Nickelback.

Apr 22, 2018

Around 40% of gross give or take a few %.

Apr 22, 2018

Anywhere from 10k to 15k a month.

Apr 23, 2018

Thats only 1% of your gross though ;)
But for real great job.

Apr 22, 2018

I wish.

Apr 22, 2018

I'm aiming to save about 1/3 of my monthly net. With my first salary that means I need to careful with excesses in the 1st year but from year 2 it ends up being fine with my current lifestyle

Best Response
Apr 22, 2018

None. Work hard, play hard.

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Apr 25, 2018
hp2000:

None. Work hard, play hard.

preach

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Apr 22, 2018

As an analyst I was saving around 5-10% of gross. Wife and I are now saving about a third. Percent will go up as our incomes go up. We also are still paying down significant graduate school debt between the two of us. Lifestyle inflation definitely happens, but you should still have your savings rate go up, it just never goes up as much as you expect unless you are really strict.

Apr 22, 2018

I'm probably at like 10-15% in stocks per year, with 5% or so in cash

Apr 23, 2018

Around 15-20% of the wage

Apr 23, 2018

Curious to know how you guys set financial goals for yourself... Banana for your thoughts!

Apr 23, 2018

I have a projection worked out with various assumptions about earnings, savings, and investment returns. I have it calibrated so I can determine at what point my savings/investments would be able to throw off an income equivalent to my salary. My goals were set by changing the assumptions such that my cross-over point is equal to age 45. I intend to hang it up then and do what I wanna do.

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Apr 23, 2018

I target about 40% of take-home each month (with a minimum of 30%) and 50% of net bonus. That's on top of 10% into 401k and not counting any equity compensation.

Apr 23, 2018

I'm really scared and vigilant of lifestyle creep. It can happen so easily and naturally.

heister:

Look at all these wannabe richies hating on an expensive salad.

Apr 24, 2018

Let it happen. Won't be 25 again

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Apr 23, 2018

Won't be 35 twice either. Guess we have different lifestyle goals

heister:

Look at all these wannabe richies hating on an expensive salad.

Apr 23, 2018

10% into 401k contribution. Then save 40% of monthly take home pay.

Apr 23, 2018

10% pre-tax into 401K
15-20% of post-tax per paycheck
90%+ of post-tax bonus

Apr 23, 2018

All-in, including 401k etc. I'm at about 15 - 20% of gross income.

Apr 23, 2018

I currently don't save anything. Embarrassing, I know. Savings has been something that I need to get better on. I used to save ~30%-40% of my paycheck, but for some reason I've never gotten back into the mindset after my startup failed and I lost everything.

My current overhead and lifestyle basically has me living paycheck to paycheck. For younger monkeys out there, I'd warn you not to fall into this trap.

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Apr 23, 2018

aiming for 75%, currently around 50% on a better month.

Apr 25, 2018

what's your living situation that you can do this?

Apr 23, 2018

I have a sweet deal on my apartment through my roommate, it's about half what others in the area pay. I only eat out a few times a month, buying most food in bulk at costco. Work is less than 10 miles away so I bike there (it's actually faster, I get my cardio, and my path has no stop signs/lights/cars for 90% of it), but I typically work from home 3x a week. I've already invested in all my hobbies so there's almost no reoccurring costs there.
I can go into more detail if you're curious, but a lot of what I learned is from my cult of mr money mustache.

Apr 25, 2018

Roughly 16.8% of gross pay goes to savings and I put 15% of gross in a ROTH 401k. I'm not a huge spender but I don't live like I'm poor either. live in a low COL city.

For anyone struggling to save, I suggest:
- mapping out your monthly expenses - EVERYTHING. Rent, utilities, gas, groceries, phone bill, gym membership, spotify, netflix, haircuts, weekly lunches, etc (I do 1 weekly lunch a week that I budget for). Definitely limit how much you eat out unless your firm gives you $25 a day if you stay past 8pm or whatever. ALSO: think of large 1-time annual expenses such as: car insurance, renters insurance, contacts, car tag renewals, presents for family, oil changes etc -- add these all up and divide by 12 - add this number as "expenses" in your budget. You're effectively amortizing large expenses to account to for so you don't blow your savings with things you should've known you had to pay for, just not on the monthly

  • aiming for a minimum of 10% 401k contribution, 15% is best if possible.
  • putting a % of your paycheck directly into a savings account. My employer lets me direct deposit my check up to 4 different accounts. The rest should go into a checking account. I'd try to put at least 10% of your gross pay into the savings account if possible.. if not, start small and increase over time. Each raise, you should increase your % that goes directly into your savings account - my entire raise this year went into increasing my savings % - perfect way to avoid lifestyle creep.
  • Once you have an idea of your fixed / mostly fixed expenses (i.e. groceries will vary by a couple $ a month, same with gas), figure out your monthly free cash flow - which i define as 2 bi-weekly paychecks that go directly into your checking, less your budget. This is how much "Spending money" you get a month - try NOT to spend over it. If you only get $150 a month of FCF to spend , don't buy 3 rounds at the bar for your 5 buddies or it'll be gone in 2 nights.
  • Now, 2 bi weekly paychecks x 12 months = 24 pay stubs. The other 2 will be used for unexpected expenses - they ALWAYS fucking happen. god damn. I like to mountain bike and just dropped $200 unexpectedly on repairs/tune-up.

I don't care if you're a big baller making $500K+ or whatever a year. You're still broke if you spend $500,001 a year.

EDIT
Other useful tips:

  • NOw that you have your budget, you need to track your spending. I like to put EVERYTHING I possibly can on ONE credit card (and pay it off in full every month). This makes tracking your spending incredibly easy. In fact, the only things I don't pay via credit card are rent, water, and gas (heating).

You should update your spending in excel once a week if you have time. literally takes 5min - take credit card balance and subtract your CC statement amount = spend to month (you might want to start tracking on the day of your credit card statement date - mine is the 15th so that's the "new month" day for me. Also, periodically check to see if you're under budgeting for "semi fixed" expenses, namely groceries and gas.

If anyone's interested, I have an excel template that I can share if you PM me. IT's nothing too elaborate but It's easy to use.

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Apr 23, 2018

people forget to realize/mention -- it all depends on how long you want to/expect to live.

some people prefer the short fast life
some people prefer the long leisurely life.

it seems like most workers assume they'll live to ripe old ages (70+)
^ a fact which bothers me. you could die tomorrow.

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Apr 25, 2018

You're right that we don't know how long we expect to live, but if you want to be fully rational about this, you should maximize something along the lines of

P(Life Expectancy<70)x(Utility from S savings)+P(Life Expectancy>=70)x(Utility from S savings)

Adjust size of S as you see fit. Like you said, most people assume they'll live to ripe old ages; I'd say that's a valid assumption given how as a whole we are likely to live longer than we have in the past.

Apr 25, 2018

Around 40% post tax. Lining up a savings account to be used in case of "life," and maxing out a Roth IRA, as well as investing in a 529 account for grad school.

Apr 24, 2018

From day 1, I basically planned to save 0% of salary and 100% of bonus.
Started out at 70k base - spent it all
The 80k - spent it all
Then 90k - spent it all

And so on
Now, I'm basically at the point where I live a lavish life (business class on long distance, 5 star hotel, 3 vacations/year, random tech gadgets) and still can't spend the $150k base so I'm forced to save. Currently saving about 20-25% of that

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Apr 24, 2018
roversam:

Now, I'm basically at the point where I live a lavish life (business class on long distance, 5 star hotel, 3 vacations/year, random tech gadgets) and still can't spend the $150k base so I'm forced to save.

Wait till you have kids. I think 200k is borderline poverty level if you are living with kids in Manhattan.

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Apr 24, 2018

Yeah I mean I'll definitely be cutting down on some of the stupid stuff but can't imagine base salary (I'm already at firm MAX) is enough to survive in NYC with a family. I live down in TriBeCa so know how expensive things can get.

Realistically, I'm hoping my spouse will be bringing in some money too (maybe in a more stable job) and that should help. Not there yet.

Also saw your comment below on 1M+ cash savings... would it be rude to ask about total net worth? Given your ~20yrs of experience, I'm assuming its a large number

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Apr 24, 2018

well i consider my drinking habit to be a form of saving money so i end up saving ~40% of gross.

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Apr 25, 2018

I wonder if I could count my drinking habit as a medical expense for some sort of tax cut.

Apr 25, 2018
Sham Wow:

I wonder if I could count my drinking habit as a medical expense for some sort of tax cut.

If you are able to, give me your accountants contact info......for a friend, of course.

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Apr 24, 2018

I would highly consider anyone who would want a starting guide on how to save, read the book,

"The Index Card". I bought this book after listening to NPR News on a Weekend Edition where the author was on the show talking about savings and finances. I thought it was interesting and decided to purchase it. It helped laid out a guide line on how to save in increments over time. Understandably, majority of the people on here are financially savvy, in terms of concepts/terminology. However, it is still a good starting point.

Saving wise, I aim to save at least 10-15% of my pay after taxes and budget my spending so I can throw the rest into my ROTH IRA Account. So...between $150-300 monthly.

No pain no game.

Apr 24, 2018

At the moment around 30%...increased from 20% cause of opportunities and eh... "reasons".

Did not really rise that number up before but i am now earning enough that i don't need to cheat my own goals or instantly would feel any kind of financial pain as part of daily life.

Apr 24, 2018

For what it's worth, I too spend my base almost completely, though now that I am single again it's proving to be difficult. Obviously, I max out my 401k contribution (my income is too high to contribute to an IRA, unfortunately), it would be silly not to considering the employer match. After that I split my bonus more or less evenly between various investments (at the moment I am sitting on a 7-figure pile of cash, which is pretty sad) and donor-advised funds for that warm-and-fuzzy.

Apr 25, 2018

Quick note: your income is too high for a ROTH IRA, but I don't believe there is a limit to a traditional IRA (I could be wrong, but I certainly haven't hit it if there is).

Google Backdoor Roth IRA.

Essentially you contributing to a traditional IRA and then convert it to a roth. You lose the current year income tax deduction that a Roth has, but retain all other benefits of a Roth IRA. At Bonus time I do this with $5500 for me and $5500 for my wife. Its easy and all institutions should be able to do this. I can do it easily with Fidelity online.

twitter: @CorpFin_Guy

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Apr 24, 2018
accountingbyday:

Quick note: your income is too high for a ROTH IRA, but I don't believe there is a limit to a traditional IRA (I could be wrong, but I certainly haven't hit it if there is).

Google Backdoor Roth IRA.

Essentially you contributing to a traditional IRA and then convert it to a roth. You lose the current year income tax deduction that a Roth has, but retain all other benefits of a Roth IRA. At Bonus time I do this with $5500 for me and $5500 for my wife. Its easy and all institutions should be able to do this. I can do it easily with Fidelity online.

Doesn't it make sense mostly if I think my taxes are going to be higher when I retire?

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Apr 22, 2018

Like a boss.

Apr 24, 2018

Retirement included, I save between 35-40% of my gross. I don't waste money and I don't live lavish, so it allows me to spend money and buy things I want.

Apr 24, 2018

-20%

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Apr 25, 2018

During my early days, my MD said, "Spend Your Paycheck, Save Your Bonus."

Apr 26, 2018

Every month I save 30% of my salary, then the 70% is what I use for my expenses. I'm working as a Web Designer at Petstreetmall which is an online store that sells pet supplies.

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Apr 25, 2018

Putting $1k/mo in my brokerage account (I'm staying liquid for b-school or house down payment) and also saving ~$150 per month to get the employer 401k match. This all translates to ~23% of my gross monthly income (yep, I make about $60k). Some months I save less than $1k but I catch up with my tax return and the yearly performance bonus.

I'm hoping to keep saving 20% of the gross until I hit a level where I don't need to spend the remaining 80% and can save the extra.

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Apr 25, 2018

1.5yr analyst (non-IB); live at home in a low COL city.

~58% of my gross income (this 'savings' figure includes both retirement savings i.e 401k/Roth, and normal savings)

~18% of gross if excluding retirement savings.

Apr 25, 2018

about one third of gross last year. looking to get up to 50% asap.

Apr 25, 2018

40-50% of net (equal to c.30% of gross) + 5% into pension with 10% employer contribution. Total "savings" including pension + employer come to c.75% of net or 45% of gross.

I'm excluding mortgage on this even though I guess you could say the capital portion counts as "forced investing".

Living in London for reference. Does not include bonus.

Apr 26, 2018

The main thing in saving is that you need to do it according to your own intends. So it you will save $10 a month, it is also good. The reason of it is this is much better then to save nothing. So if you think about the sums, it is not important at all. Surely, it is better to save as much as you can. 50% of your income it is one of the most interesting savings and it is almost perfect. But mostly people do it in 10-30% of the income. And the results of such are great!

Apr 22, 2018

Who cares, bang bitches.

Apr 28, 2018

I am targeting 30% of my AGI - this does not include contributions to my 401K. I guess I live frugally.

Apr 28, 2018

40% of my gross income

Apr 28, 2018

Does this include your 401K or not?

Apr 28, 2018

Yes, I only contribute 3% to my Roth 401(k).

So technically I save 37% of my gross without the 401K.

Basically I use one paycheck to pay for all my expenses and spend the remainder and bank the other pay check. I'm lucky enough to have an apartment at my grandparents house so I live rent free.

Apr 28, 2018

I put 25% into a 401k and save a decent amount in cash each month. 70.5k salary, live in a borough

Apr 29, 2018

currently spend every penny I get, which is pretty bad.

Apr 29, 2018

Starting out saving 15% of gross is fantastic. I've been a proponent of delayed gratification my entire adult life and I am now old enough to be able to report, categorically, that the practice works as prescribed.

Learning to live below your means and paying yourself first is a near bullet-proof plan for having a successful financial future.

Someone on these boards put it quite eloquently several months ago when they typed: "I only spend money on things that will make me smile on my death-bed." I thought this was quite a profound view of life with regards to frivolity. Keeping up with the Joneses with the McMansions is out, the sharing economy has displaced the previous generations' perception of rugged individualism. Millennials wanting to DO more as opposed to OWNING more is changing the complexion of our society,..... but I digress.

I max out ROTHS for both my bride and me ($13,000/yr.), max out my HSA ($6900/yr.), currently deposit $500/month is my taxable retirement acct (won't have access to 401k until next Jan.), and put $300/month is savings acct. However, both kids' college is already paid for, house is paid for, autos paid for, ie. zero debt so I can afford to save about 20 - 22% gross. Obviously, I'm in a different financial situation than many on these boards as I probably have a couple decades on most members.

That said, a major congrats to everyone out there who is actually saving for their future and making it a priority. You will thank yourself in the future.

Apr 30, 2018

I save ~25% of my income in 12% to 401k and another ~15-17% in my savings account. I just set up an automatic transfer from where my check gets deposited to my savings and play with whatever is in my checking account, though it does build up, and I move ~2-5k into my savings when needed.

I drive a 15 year old SUV and paid off my student loans first. Biggest thing was working FT while in grad school (BS/MS engineering) and getting my company to pay for the MS. Be strategic people. Also helps I didn't go to a school to get massive loans but took the in-state (basically free) option. People who go into engineering, do an ROI please. Most F500 engineering jobs pay within +/- 20%, excluding those guys in tech playing 4k a month in the Bay Area. Lol fk that. I'll take my LCOL w/ 100k salary and live well.

Also, look into crypto. Put in 1k and made it ~500k in 2 years. Always take a little risk every now and then. Risk management people.

Apr 25, 2018
trustmeimanengineer:

Also, look into crypto. Put in 1k and made it ~500k in 2 years. Always take a little risk every now and then. Risk management people.

That seems repeatable....

Apr 30, 2018

That's why I said always take a little risk and not throw your portfolio at it.

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May 4, 2018

Trying to pull ~25% but it proved hard in the beginning (stupid investments in furniture, etc.)

Aug 24, 2018

1 year into the real world:
Max out 401k/IRA
2k/month into Wealthfront
Reasonable, but not lavish of lifestyle. Wish I did have a little lifestyle creep.

Apr 21, 2019

I was never good in savings.

Apr 22, 2019

In a regular month/year:
58% of take home pay
6% gross pay in 401K
6% gross pay in 401K matching
100% of annual bonus (20-30% of salary)

I'm frugal, but not cheap. A few things that help me save loads.. I stopped partying a while ago, I don't eat out excessively, I live in a modest apartment, I drive a modest car, and I don't buy materialistic things. The only thing I find myself splurging on is travel, which I seldom ever have to buy outright because of good travel deals and travel points/miles.

-- Buggy

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