Seriously, I have never calculated our savings rate. Since I discovered that keeping track of things really helps to achieve your goals (by now, I think it’s the most useful device to achieve your goals) I actually haven’t thought of keeping track of this.
Today’s MMM article is another great piece on the snowball effect of saving. I get that when saving 50% of one’s income, one could comfortably retire within 14 years or even less. However, without tracking the amount we save I can already state that we don’t save 50% at the moment.
After a really quick scan in my Excel sheet I think we roughly “save” 20% a year, which I am rather proud of. By saving I also mean paying off the mortgage.
Now I am motivated to keep track of the actual percentage we’re saving and I will make an effort to track this percentage in retrospect. Obviously, I am going to track the number from now on as well.
After having done that I will discuss a new target with my husband. Will it be 25%, 30% or straight to 50%? I’m not sure yet…nevertheless I am positive we’ll never decrease the percentage from now on.
Do you know your savings rate?