Comments on: The pursuit of the perfect savings rate http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate Sun, 03 Jul 2011 02:33:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Carnival of Personal Finance #79 http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-32864 Carnival of Personal Finance #79 Fri, 09 Nov 2007 14:03:30 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-32864 [...] My financial journey at My financial journey: The pursuit of the perfect savings rate [...] [...] My financial journey at My financial journey: The pursuit of the perfect savings rate [...]

]]> By: My Financial Journey http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-162 My Financial Journey Mon, 01 Jan 2007 14:18:52 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-162 EMF - I have no credit card debt, never had and never will. I do however have a HELOC at 8.75% interest (about $5500) that I am widdling away at. I also don't have an emergency fund, but I am relying on the HELOC for that. I have a little over $10k left in my line of credit so I figure that could get me through a couple rough months. Thanks for your comments!! EMF – I have no credit card debt, never had and never will. I do however have a HELOC at 8.75% interest (about $5500) that I am widdling away at.

I also don’t have an emergency fund, but I am relying on the HELOC for that. I have a little over $10k left in my line of credit so I figure that could get me through a couple rough months.

Thanks for your comments!!

]]> By: EMF http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-161 EMF Fri, 29 Dec 2006 14:50:07 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-161 Congratulations for your focus on savings. If you and your family are happy without all the "things" and your basic needs are met, then you're not oversaving. On the other hand, you need to be balanced later on -- I don't want to end up like some people you read about occasionally who've lived very frugally into their 80's and leave an estate worth several million dollars. One thing your blog doesn't mention is the other aspects of your financial situation. I'd guess that you don't have a large credit card debt given your mindset. But that's wrong you should focus on getting rid of any high interest rate debt. You also don't mention an emergency fund. While you could tap the principal of your Roth IRAs in a pinch, that could take some time. I'd have at least one month's expenses in liquid assets readily available now with the goal of building that up to the 3-6 month range. Congratulations for your focus on savings. If you and your family are happy without all the “things” and your basic needs are met, then you’re not oversaving. On the other hand, you need to be balanced later on — I don’t want to end up like some people you read about occasionally who’ve lived very frugally into their 80′s and leave an estate worth several million dollars.

One thing your blog doesn’t mention is the other aspects of your financial situation. I’d guess that you don’t have a large credit card debt given your mindset. But that’s wrong you should focus on getting rid of any high interest rate debt.

You also don’t mention an emergency fund. While you could tap the principal of your Roth IRAs in a pinch, that could take some time. I’d have at least one month’s expenses in liquid assets readily available now with the goal of building that up to the 3-6 month range.

]]> By: My Financial Journey http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-160 My Financial Journey Fri, 29 Dec 2006 14:44:09 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-160 Sorry I'm not sure why I said tax-deferred. They are tax-free. They are both Roth products so I will not owe anymore taxes on them ever. Sorry I’m not sure why I said tax-deferred. They are tax-free. They are both Roth products so I will not owe anymore taxes on them ever.

]]> By: Lazy Man and Money http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-159 Lazy Man and Money Fri, 29 Dec 2006 07:28:17 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-159 Tax deferred doesn't really mean tax-free though. In the 401k you'll have to pay taxes based on your income at that time which may be 25%-28% (just a stab). That's what makes a 5% interest rate more like a 3.75% one. Tax deferred doesn’t really mean tax-free though. In the 401k you’ll have to pay taxes based on your income at that time which may be 25%-28% (just a stab). That’s what makes a 5% interest rate more like a 3.75% one.

]]> By: My Financial Journey http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-158 My Financial Journey Mon, 18 Dec 2006 19:35:03 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-158 Lazy - Actually all of my savings right now are tax deferred...they are all going into Roth IRAs and Roth 401k. Inflation is a very valid point though. Lazy – Actually all of my savings right now are tax deferred…they are all going into Roth IRAs and Roth 401k. Inflation is a very valid point though.

]]> By: btc http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-157 btc Mon, 18 Dec 2006 18:59:14 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-157 Oh how I wish I had your problem. I just started saving 25% of my net income a few months ago and contribute 5% to my 401(k) with my company matching dollar for dollar. I'm doing much better than I was a year ago, but I still feel I have a long way to go. There just never seems to be enough money to go around. I'm saving for a house down payment, trying to pay off my student loans, and have family obligatons. With that in mind, it makes livng a frugal lifestyle much easier. Still I wonder when or how much it will take for me to feel comfortable splurging every once in a while. On an entry-level salary, probably no time soon. Oh how I wish I had your problem. I just started saving 25% of my net income a few months ago and contribute 5% to my 401(k) with my company matching dollar for dollar. I’m doing much better than I was a year ago, but I still feel I have a long way to go. There just never seems to be enough money to go around. I’m saving for a house down payment, trying to pay off my student loans, and have family obligatons. With that in mind, it makes livng a frugal lifestyle much easier. Still I wonder when or how much it will take for me to feel comfortable splurging every once in a while. On an entry-level salary, probably no time soon.

]]> By: Lazy Man and Money http://myfinancialjourney.com/archive/the-pursuit-of-the-perfect-savings-rate/comment-page-1#comment-156 Lazy Man and Money Mon, 18 Dec 2006 18:43:35 +0000 http://www.myfinancialjourney.survivingkids.com/archive/the-pursuit-of-the-perfect-savings-rate#comment-156 Charts like that are great, but it doesn't take into account inflation and taxes (the money you are going to be saving now looks like it won't be tax defered). If you make 9% (say a split between 8% and 10% that is somewhat typical in the stock market), 3.5-4% of that goes away to inflation, so you are really just compounding at a 5% rate. And with taxes taking away a quarter of that (just an estimate), you'd really be at 3.75% or so. Let's round it up to 4% and in 30 years that $1,000 TV is really about $3250 TV (in the same dollars). Hey, you just saved $16,000+ on that TV. What a bargain! How's that for rationalizing? Charts like that are great, but it doesn’t take into account inflation and taxes (the money you are going to be saving now looks like it won’t be tax defered). If you make 9% (say a split between 8% and 10% that is somewhat typical in the stock market), 3.5-4% of that goes away to inflation, so you are really just compounding at a 5% rate. And with taxes taking away a quarter of that (just an estimate), you’d really be at 3.75% or so. Let’s round it up to 4% and in 30 years that $1,000 TV is really about $3250 TV (in the same dollars).

Hey, you just saved $16,000+ on that TV. What a bargain! How’s that for rationalizing?

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