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Old 06-01-2008, 05:39 PM
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disneysteve disneysteve is offline
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safari - Savings comes first for me, as it does for you with your 401k. That 18% comes out and we live on the remainder. That does not mean that I limit myself to saving 18%. It always ends up being more than that by the end of the year. Already this year our entire tax refund and our entire tax stimulus rebate went into savings. Those amounts are on top of the 18% figure. And my wife puts 50% of her income into her 401k. So our overall household savings rate ends up being more like 22% of gross by the time we're done. The 18% figure is a minimum, not a goal.
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