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I have usually measured rule of thumb our savings and never actually sat down and calculated. I finally "sat" down and calculated it via MMM. For the past 3 years it's been 38%, 42%, 44%. I was going by rough measurements of 1/3 taxes, 1/3 spend, 1/3 save. Anyway I've been listening to Financial Independence Retire Early (FIRE) podcasts a lot and started feeling guilty. I feel guilty because we aren't saving the crazy 75%+ some people are doing. We are spending the "Ridiculous" amount of money people who FIRE used to spend and then cut back from and then call it ridiculous.
Do you guys ever feel guilty for not saving enough? How much do you guys save? Based on 40% I believe it's 22 years to retirement which is pretty much dead on for MMM. Assuming we were 28 when we started (thank you grad school) and 22 years later puts us at 50. But in reality it's closer to probably 3-5 years now if DH stayed at his current job. Since he's not it'll be 7 years probably to FI.
But I feel guilty. I mean we have more than most people who FIRE. We probably could FIRE if we could cut our spending by a little. But then I go back and forth with do I want to live on $30k/year? Or $60k/year? How do I know it'll be enough? Is it really enough with medical? I wonder is the 4% rule really applicable if you start at age 45 and live to 100? Chances for us both are high we'll be 90+. That means a 50 year retirement.
Singuy wrote about working hard earlier and making sacrifices. I sort of am on the side of his employees. My DH told me he wanted a year off to transition and spend time with the kids. He said "DK2 doesn't like me. I don't spend enough time with her." So he spent a year with her and more now than before and he says it made a huge difference. He felt that working a year on the back end more important than working a year in the middle of the kids being 3 and 5. Now he wants to do a start up and expects to work a lot. But again he figures he'll work longer to make up for it if it doesn't work. So I get this stop and smell the roses.
I was thinking okay if we cut our spending and live on 20% of our income and save 80% we could be FI in 2 years? But should we do something like that? How much will it hurt?
How do you guys balance saving for retirement with the now?
Do you guys ever feel guilty for not saving enough? How much do you guys save? Based on 40% I believe it's 22 years to retirement which is pretty much dead on for MMM. Assuming we were 28 when we started (thank you grad school) and 22 years later puts us at 50. But in reality it's closer to probably 3-5 years now if DH stayed at his current job. Since he's not it'll be 7 years probably to FI.
But I feel guilty. I mean we have more than most people who FIRE. We probably could FIRE if we could cut our spending by a little. But then I go back and forth with do I want to live on $30k/year? Or $60k/year? How do I know it'll be enough? Is it really enough with medical? I wonder is the 4% rule really applicable if you start at age 45 and live to 100? Chances for us both are high we'll be 90+. That means a 50 year retirement.
Singuy wrote about working hard earlier and making sacrifices. I sort of am on the side of his employees. My DH told me he wanted a year off to transition and spend time with the kids. He said "DK2 doesn't like me. I don't spend enough time with her." So he spent a year with her and more now than before and he says it made a huge difference. He felt that working a year on the back end more important than working a year in the middle of the kids being 3 and 5. Now he wants to do a start up and expects to work a lot. But again he figures he'll work longer to make up for it if it doesn't work. So I get this stop and smell the roses.
I was thinking okay if we cut our spending and live on 20% of our income and save 80% we could be FI in 2 years? But should we do something like that? How much will it hurt?
How do you guys balance saving for retirement with the now?
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