I was reading an article on cnnmoney.com about a couple that is on their way to being Millionaires by the time they are 50. The thing is, they don't have kids YET.

They were civilians, making a combined 55k/yr. It listed all their bills(which were half as much as mine) and it listed what they save. I was amazed at how much they could save!

How much do you save?

More than a without dependents Servicemember of the same paygrade and TIS because we get BAH with dependents!

Sorry, just 'had' to! LOL

I don't save anything... I spend it all on gas!!

quote:

Originally posted by SearchNRescue:
More than a without dependents Servicemember of the same paygrade and TIS because we get BAH with dependents!

Sorry, just 'had' to! LOL

Ha palease, I wish it worked that way.

10 percent. That's the easy answer. I invest 10% of my net income in a mutual fund. The key is starting early when you have few bills. Then each time a raise comes in you bump it up. By doing this I will not have to work when I retire. One key is the money needs to be drawn off your paycheck before it goes into your paycheck.

Good luck
Jon

about 50% of our combined incomes

As was posted elsewhere on this board, the "Rule of 72" is very important.

It boils down to:

1. A 3% return requires 24 years to double.
2. A 6% return requires 12 years to double.
3. A 9% return requires 8 years to double.
4. A 12% return requires 6 years to double.
5. A 15% return requires about 5 years to double.
6. An 18% return requires 4 years to double.
7. A 24% return require 3 years to double.
8. A 36% return requires 2 years to double.

Get the drift? The "Rule of 72" is a POWERFUL financial tool!

We are just now able to save like we should. 'bout time. I guess we are lucky though,b/c most people with a family of 5 on one income are hurting financially. So we should be thankful we learned the ol' saying: "Live below your means" early in the game.

I saw on the news last night that the smartest way to invest is in your mortgage. That is IF you plan on living there until you retire. Since the % rates on savings accts and CD are sinking.
Everytime you have extra cast flow that you want to save, pay towards principal. Our plan seems to be that the next home we buy in FL will be the one we rot in. The thought of selling another home makes me sick.

I'm able to save just fine now after about 7 yrs of being in debt. The key for me....don't go for marriage/divorce #4.

Don

I save 33% of my Net earnings

holy moly, that is good...33%? Do you eat? lol

YUP! I could save a whole lot more if i didnt Eat/Drink out so often . We'll kick it (the savings AND entertainment) up a notch in a few months with an advancement and a longevity raise.

EM1

Well, after the first car crash, er divorce, I headed over the horizon with most of the credit debt. I had just made Chief. I vowed I would not get into another financially incompatible romance again.

Now, headed for two decades with the right girl, we've been financially compatible from the git-go. We decided early on that annual active duty pay raises would go mostly untouched and go into savings bonds for the kids, IRAs, and building a joint savings account. It only took us 2-3 years to dig out of the first wife-induced pit. She continues to be financially irresponsible, but someone else's burden now.

I walked away from the initial train wreck with my retirement intact, my SRB supplementals, and a whole life policy I bought outside the service. I also walked away with a savings mentality I got from my family. The first gal had an "I want it and credit allows us to get it right now!" mentality.

Now that I've retired (and found other work), I put about 17% of my monthly gross (USCG and small business income) spread out into: a)joint savings; b)IRA accounts for wifey and I; and c)additional mortgage principal.

I intend to start shifting more soon into buying farmland.

We bought the homestead about ten years ago on a 30-yr. fixed and refinanced once about five years ago. The home will be ours in 2015, about 14 years ahead of schedule.

I refuse to buy cars that I can't own outright, and I consider the insurance savings bankable as well.

Best regards to all pursuing a better savings plan.

sindbad sends

I don't really believe in saving money..there was time when i did..let me explain.

The xo and i lived well below are means for years while active duty..before i got out i had enough money to litterally buy any new car or truck i wanted out right..kinda of a good feeling..but we did,nt waste it on a vehical..instead with the help of our hometown bank..and alot of cash..we built our dream home..its all we ever wanted.

I still owe some but were paying much more than the minumum payment...while were also enjoying life..at the same time..none of us are gauranteed tommarro..and when i meet my maker how much money i saved before i died will be the last thing i will be worring about.

sc

Steve,

Good point, but I'm more focused on ensuring wifey and kids are secure. There is an element of Semper Paratus there for the present day too--emergency repairs and medical stuff--but, when I meet my maker (Hasbro?!), I'll feel better knowing those left behind aren't saddled in debt.

Best regards!

Larry

When we are but ash and dust all that the world will know of us is the name we left behind. How well will we be spoken for if your legacy has but scraps to survive. I applaud your train of thought "sinbad". We save not only for our retirement but for those we leave behind.