I’m working towards saving $48,000 this year, which is 60% of our gross household income.
Click here to read all posts associated with my $48000 goal.
Click here to read about my savings and investing goals for 2007.
Here’s my updated chart with detailed information:
Explanation
My Roth = $8000 ($4000 for 2006 and 2007)
Wife’s Roth = $8000 ($4000 for 2006 and 2007)
ING (Repay $5000) = I ‘borrowed’ $5000 form my savings so that I could fully-fund the Roth IRAs for 2006. I am in the process of ‘paying myself back’.
Next Step: Open and fund ESA for my son.
(You can also follow my progress over at the No Credit Needed Network: NCN 2007)
How do you live? Taxes will take up at least a quarter of your gross income ($20) and if you plan on saving $48, that leaves you $12 to live on. Yikes.
In a similar line of questioning as Kurt, do you anticipate being able to save at this level over a prolonged period of time? $48k/year over 10 years is almost $1M. That’s approaching replacing your income.
good luck with the savings, that is going to require some serious budgeting.
Thanks for the questions…
80K = estimated household income
48K = savings goal
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I pay taxes on roughly 60K (17k pre-tax retirement + health insurance)
8K = estimated taxes
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So, 80 – 48 – 8 = 24K?
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Basically, we live on roughly 2K a month, plus any income from eBay or selling things…
(we pay tax on this income… but it’s too random to include in my updates…)
(Please note… the amount estimated for taxes is a bit high, b/c we have two
kids… also, my housing is provided as part of my compensation…)
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Side note: I make some money from my blogging activities, but all of this money
goes into a separate, business savings account… and is not included in household
income…
What about long term plans? How has your family’s standard of living changed over the past year? Have you felt the pinch, or have you not really noticed the “lost” income? Is this plan sustainable?
Truly astounding job NCN! Your results are exactly why I’m so anxious to get out of debt. When you have no payments, it just doesn’t take much to live comfortably. If we had to live on 2k a month right now (and we live in a very cheap part of the country), we’d be starving; 2k a month with no debt payments, and we could probably eat lobster every nite if the mood struck us…
Mike…
I consider 2007 to be an ‘experiment’ year… trying to max out retirement plans, education, etc… and add in 2006 IRAs, to boot…
is this sustainable? well… w/ the new baby coming, we prob will not be able to save quite as much… but our lifestyles are relatively ‘normal’…
NCN
Wow, that’s awesome. And it brings back the harsh reality that I still have $4,000 more to contribute to IRA and $5,000 for my kid’s college.
Nice work!! Truly inspirational.
Going on percentages, you are about 67% of the way there, and the year is just about 75% over, so you aren’t too far behind.
Best of luck
Good look, NCN! Although I have to ask where you live that you only spend $2k a month … I almost pay that much in rent.
Junger… my housing is provided by my employer… but if I had to, renting a home here in rural Georgia would not be that expensive – say $600 – $900?
NCN
lucky you. Let ME save 48,000!
like you gotta be frugal? lol