I’m not saving ninety percent of my income for myself

Re:I’m not saving ninety percent of my income for myself by acjohnson55 on Saturday June 08, 2019 @03:03PM (#20134355)

As Paula Pant of Afford Anything [1] would say, you can afford anything, but not everything. The author here is house-hacking [2], which certainly isn't everyone's cup of tea, but it is one way to get around high housing costs.

I've listened to enough financial independence podcasts to know that it's absolutely possible to hit a 90% savings rate. There are guests on the show who have done it on much less income than my family, and we'll be lucky if we hit 40%. It just depends on what assumptions of necessity you're willing to give up to do it.

[1] https://affordanything.com/

[2] https://www.coachcarson.com/house-hacking-guide/

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Re:I’m not saving ninety percent of my income for myself by fjsolwmv on Saturday June 08, 2019 @03:24PM (#20134506)

Sure, pretending that your rent/mortgage payment isn't an expense, and calling it "house hacking", makes it easier to claim a 90% savings rate.

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Re:I’m not saving ninety percent of my income for myself by acjohnson55 on Saturday June 08, 2019 @03:54PM (#20134721)

I see your point, but I also don't think it's crazy to calculate effective savings as net wealth contribution over net wage income, which seems to be how she's thinking about it.

Actually, to me, savings percentage isn't important as a bottom line number. It's just a helpful intermediate number for understanding cash flow. I'm much more interested in net wealth contribution and how that dials up to future plans involving large sums of money (e.g. moving or expanding house, education, letting go of wage income, major philanthropy, estate plans, risk management).

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