How are you Calculating Your Savings Rate?
HTML-код
- Опубликовано: 3 июл 2024
- Do you know what your true savings rate is? Jonathan and Brad have an in depth discussion about some of the finer details of saving after Jen poses the question from our facebook group. Additionally, listen in to learn some great tips for crushing your grocery budget in a tastebud-friendly manner, and get some takeaways from episode 158 with Kim from the Frugal Engineers.
we created a calculator for you on the show notes for this episode
www.choosefi.com/your-real-ho...
thefrugalengineers.com
Links from Show:
www.choosefi.com/vault
www.choosefi.com/itunes leave a review and let us know at feedback@choosefi.com
Enjoy the video? Consider subscribing to our channel, it really helps us out! And it’ll make sure you never miss another video ;)
SUBSCRIBE: bit.ly/2Vdo6K8
WATCH NEXT
► Popular Videos: bit.ly/3bjaTWY
FAVORITE VIDEOS ON CHOOSEFI TV:
The Financial Resilience Toolkit:
►Earn $600 on Cashback: bit.ly/2VoKJM4
Save On Existing Loans
►Slash Your Student Loan APR: bit.ly/34ARIWj
►Refinance Your Mortgage: bit.ly/2yemLee
►Consolidate Your Debt: bit.ly/2wBBnnE
Save on Living Expenses
►Lower Your Cell Phone Bill: bit.ly/2yeX8tO
►Save on Home Insurance: bit.ly/3b73nib
►Save on Auto Insurance: bit.ly/3ceo4c0
Save & Invest
►Open a High Yield Account with CIT: bit.ly/3a1MbZW
►Dollar Cost Average with M1 Finance: bit.ly/34wtAUP
►Open an HSA Account: bit.ly/2RA3ScG
Financial Emergency Prep
►Open an Emergency Fund: bit.ly/3a1MbZW
►Get Your Documents Ready For Emergencies:
►Get More for Less on Term Life Insurance: bit.ly/2XxFJHv
Free Financial Learning Center
►Financial Resilience Digital Download: bit.ly/2RxUMNK
►Financial Independence Made Simple Digital Download: bit.ly/2Xy9Tuk
►Financial Independence 101 Course: bit.ly/2V5mMKt
►Downloadable Resource for Accidental Homeschoolers: bit.ly/3baCVEm
►K-12 Financial Literacy Curriculum for Educators: bit.ly/2yeogJo
►Free FI Audiobook trial with Audiobook.com: bit.ly/3bbSJXi
More resources:
►Our Podcast: bit.ly/2K37hN0
►Financial Resilience Daily Show: bit.ly/34xvvIw
►Blog: bit.ly/2RyC1te
About us:
Everything we do, we do to help you slash your expenses, crush debt, and build ways to earn a living remotely by starting online businesses. Then we help you invest in the safest way we know how, despite the ups and downs of the stock market.
Every video is packed with content and actionable tips, and we get you from how to wow in 3 minutes. That's right - give us 3 minutes, and you'll get the step-by-step inside scoop on how to make and save more money, then make that new money go to work for you.
We take the hits, so you don't have to, because ultimately, we want you to become financially resilient during these trying times, and get you started on the path towards Financial Independence.
CONNECT:
►OUR WEBSITE: choosefi.com
►BUSINESS EMAIL: feedback@choosefi.com
JOIN THE COMMUNITY:
►FACEBOOK: bit.ly/3eh42PP
FOLLOW US:
►FACEBOOK: bit.ly/2XxEcRR
►TWITTER: bit.ly/2XznOQU
►INSTAGRAM: bit.ly/3a7mt68
►PINTEREST: bit.ly/3enOQAK
so excited I found you on RUclips. So fun to put faces to the voices! I love listening to your podcasts! Thank You for sharing all your wisdom.
I always say TGIM & TGIF so I can get my ChooseFI podcast fix. You guys are crack for the aspiring FI’ers!!!!!
Best comment ever :) !!!!!
Excellent video. Sounds like I need to recalculate my savings rate! I haven’t been taking into account what I pay towards health insurance.
Great video to check out at to get ready to crush 2020!
Happy Friday!
How do you guys account for a traditional pension in the savings calculation? Also do you add in dividend income?
Is child support considered an expense or should it be removed from the equation like taxes? Thank you for the clarification.
Thanks for more great content!
Thanks for watching :)
For savings numerator would you include HSA contribution that will be used for medical purposes? (I plan to save half for future and half for current medical bills). And how about extra principal payments to a car loan? How about saving that are earmarked to be spent in near future like college money for kids? And for income denominator would you add in matching contribution from employer?
@@ancientpaint1 Seems logical. Lots to of things to track though to be able to do this calculation precisely. Thanks.
Brad, I love your show it's awesome I am thinking for the next decade I would recommend more of an assumption of 6% returns for most people or lower rather than 8% because the earnings yield on the S&P 500 is near 4% right now and bond yields less than 2%. If you are talking the next 30 years yes 8% returns sound good. I personally think 8% is kind of high considering.
Shawn Lynes if you are seriously thinking that you only want to consider 6% growth then you are not putting enough hustle into your investments. Let me back this up; my no-brainer mass mutual account has earned 26% in the last year,. While that might seem like you are crazy to even post this, my returns in 2018 was flat 2-3%. So let’s average, 13ish% return over 2 years. Yes I remember negative years but I was buying 401k investments every 2 weeks at a discount. Besides this type of returns my 3 long term rentals I bought in the middle of 2018 with my checkbookIRA.com 401k is making me $23,000 a year and my tenants are paying off my 3 rentals. Hard money real estate lending even makes a minimum of 8% and mostly 10% for secured loans!!! I conservatively estimate a minimum of 6-8% on investments but let’s be real, look at your investments and see what you have averaged over the last 10 years. I bet I am close to 14%. This does NOT include a huge real estate property purchase which will net us near 50% ROI.
I've studied investing for years since 2007 I'm talking expected returns vs actual returns. Yes the last 10 years have been amazing but expected 10 years from now. This is alot like 1998 in terms of expectations and very low earnings yields on stocks and bonds.
I believe in doing estimations based on very long timeframes not the last 10 years. Though I have loved the last 10 years
Love this conversation! What number you use is ultimately up to your investing style and preferences. But at the end of the day it's the same practices that'll get you towards fi.
Do sinking funds count as savings in this context? I include them in savings.
What are you trying to sink in those funds?
😀
Okkkao