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November 15, 2011

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I save about 90% of my income -- no kidding.
It's down to a science for me. I have a lot of tricks.

Few people can do what I do how I do it. I have considered selling my situation for about $30K and training someone (you can save $10K a month easy, like I do) but I have my doubts that anyone can do it for long.

I have been at this for just over 6 years. Not dead yet...

This is why I read FMF. Just when I was thinking of doing some stupid money moves an article like this puts me back on the right track. thanks for waking me up.

I save about 25% of my income.

1. Income is 17% of net worth.

2. This year, saved 37%, but could do better given my spending habits.

I agree controlling spending is extremely important, but I also think it is important to realize there is a floor to how much you can reduce spending. There is no ceiling on how much you can earn.

Our income is 135% of our net worth, however this includes ~$30K of student loan debt and our 401(k) and stock portfolios have taken big hits since April/May. We're also just starting out.

We have only saved a small amount this year due to the birth of our first child.

Income is 13% of net worth.
Save maybe 50% of income.
45 years old.
May retire in 5 years.

"The typical millionaire next door has a total annual realized income that is only about 8% [median] of his total net worth; the average is less than 7%"

One can conclude from this that the average millionaire is not a young buck and not a high income earner. In the 80's you had to have a high income to reach a million and thus the ratio was much higher. Now it is diluted down to regular income earners who "gun" for a million (by way of net worth) because it is "reachable" by inflation adjusted standards.

If you want to stand out like let's say a 1980's millionaire then one must shoot for at least $3 million dollar status. This is only possible for lawyers, doctors, and high level business men. In other words, you still need to focus on income if you want to feel like a 1980's millionaire. Otherwise you are just like anyone else, a decent income earner shooting for a cool million just 'cuz its now possible.

Final note, these days one must reach $1 million in retirement just to live comfortably in the later years (4% of $1mil is $40,000 per year fixed salary).


I'm only 28, so my income is roughly 90% of my net worth.

I'm saving roughly 20-25% (401(k), IRA, savings, etc.) of my income, looking to increase that as kids come into the picture.

well, my income is 84% of my net worth but I'm young. And we save over 25% of our yearly income, so I think we're on pace.

Stanley says straight out that the average millionaire is in his/her 50's and attained their wealth via a business they've started. He extrapolates many formulas but most aren't accurate to people younger than 40--a lot of personal finance writers seem to take a big exception to this (The Simple Dollar had something on this over the weekend). But when I see them, I see potential goals. Rather than feeling a need to explain why I haven't met them I get motivated to figure out when I can meet the benchmark and if I'll do so ahead of most of my peers.

That said, these metrics aren't ends of themselves but they're great metrics to know how you stack up. I can forsee that by the end of 2012, our income will only be 67% of our wealth (assuming the stock market holds even). And I can plot a path down to where we'd be at 8%--it's a tool that helps me learn more about what I save--it gives me a different texture to consider everything in.

Our household income is about 100% of our net worth, though we also have another 150-200% of our net worth in speculative investments that may or may not ever return, so I don't count them. We're only 27, and save about 50% of our gross income, so the ratio should decrease rapidly over the next few years.

My personal metric for our success is two-fold. One component is net worth, and the other is investment income. I want to build our investment income up to exceed our W-2 income as fast as possible. The net worth takes care of itself because we minimize lifestyle inflation.

Net Worth consists of our investment portfolio and two pieces of non-income real estate.
Income from pensions, Social Security, and bond investments is 5.3% of net worth.
The bond investment income is either tax deferred or tax exempt.
Save 72% of total income.
Spend 16% of total income.
State & Federal income taxes and property taxes are 12% of total income.
IRA mandatory required distributions make up 79% of our taxable income - no avoiding it.
Debt is zero.
Age 77
Retired for 19 years.

*I'm 26 years old and my net income is 25% of my net worth.

*I have saved between 65-75% of net income for the first 3+ years of my career.

I am 59 yrs old.
Income (my salary plus retired wife's pension) is 11.4% of net worth.
This past year I saved 18% of my income (not including my wife's pension). Most of my net worth is from 401K matching and stock options.
No debt of any kind.
I will be retiring next April.

Our household income is about 50% of our net worth.
We save 20-25% of our income.

I can't imagine saving more than 15% of my yearly income, but I guess being in college [and being paid accordingly] may have something to do with that :P

I am 35 years old. My income (salary) is 17% of my net worth. I used to save about 25% in a 401K but scaled that back to 13% now in a Roth-401K. Just had twins so not planning to retire anytime soon. :-)

I am 49.

My salary is 7% of my net worth and my spending (excluding taxes) is 50% of my gross salary, i.e., 3.5% of my net worth.

Unfortunately (cry me a river!), taxes are 25% or more of my salary, so I only save 25% of my gross.

My investment income varies from year to year.

Our income is about 15% of our net worth and this year we are on pace to save about 55% of our gross. About 27% of our gross goes to taxes and we live on the remaining 18% (including donations).

Our combined income is about 15% of our net worth. We have saved about 50% of our income (before tax/after tax is about same percentage) for the past 4 years so that has helped our net worth grow considerably. Low mortgage payments and no car payments and no other debt drives the large savings.

Gross Income is also about 12% of net worth.

Savings is about 50% pre-tax income.

Age is 38.

-Mike

Age 61. Single, yes really single: never shacked up, never had illegitimate kids.

Most ever earned in a year: $32K.

Currently earning $26K, 50% of which goes into 401K.

Currently receiving pension of $764/month (before taxes) from earlier employment. $500 goes into IRA.

Paid-for condo purchased for $78K in 2002. Current value about the same.

Drive a 15-year old Accord. Haven't made a car payment in this century.

Use credit cards for convenience and pay off every month.

Net worth: $688K, more or less.

Hope to retire in 2016 with $750K net worth.

(Gee, I didn't think I was doing all that great!)

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