When July rolls around, that will be the 3.5 year mark since I freaked out about my debt. Since then, I’ll have paid off $132k in debt, and put $56k into savings (retirement, Lending Club), for a total of $188k.
Take home pay according to my tax spreadsheet was $82k, $87k, $101k, and probably $47k for the first half of this year.. $317k total. 59.3% savings rate. By age, the savings rate is typically more like 16.75%. By income, the savings rate is typically more like 27.34%
Roughly speaking, I’m doubling the typical savings rate for my income.
Let’s say my spent cash per year is $36k. That isn’t bad. I can’t pretend that money has held me back during this time from enjoying myself. It sounds like a lot compared to the US average, and it’s hard for me to understand where it all went based on my spending in the past few months. It is a very middle class spending level for the bay area.
- Is paying money into a 401(k) less depressing than paying off debt? Is paying off a mortgage less depressing than paying off a credit card? By how much?
- Do people admire a low expenditure amount more than a high savings rate? I.e. is the suffering admirable or is the earning admirable? Is suffering available to everyone while earning is only available to the privileged?
- How do people think about the number of labor hours when they consider this situation? E.g. had I done through passive income vs. 15 hour work days?
- If I have hermit months and luxury months, do people consider it different than if I have a constant spend rate throughout the year?