Learning how to save, ten years later

Last year I started tracking all of our monthly expenses against our income to put a number on how much we had leftover to save. Considering that we’ve tried to curb unnecessary and excessive spending since Stephanie quit her job in 2014 and went back to school in 2015, I was still shocked to discover our total cost of living at the end of 2016. After taxes, 29% goes to the mortgage and related expenses while another 38% supports our lifestyle, which leaves 33% to save. We are fortunate to be able to save a third of our net income for retirement—a rate I’ve deliberately worked to increase over the last 3 years—but when measured against the “financial independence” yardstick, not-so-early retirement sits over 20 years away. Update: I revised the percentages and the graph below using more accurate values available after I did our taxes—and it shaved 3 years off of my working life.

Early Retirement graph from networthify.com

That said, early retirement is not my goal. I’m not sure what my goal is. Periodic retirement? Work hard for a handful of years, step away, and then return—unconstrained by prior comforts, habits, and expectations. When viewed from that perspective, those unfathomable 20 years start to look more attractive: a series of several jobs (seeking that ever-elusive purpose), punctuated by sabbaticals of adventure and self-discovery.

But enough navel-gazing. Let’s get down to brass tacks. In 2016 I:

In 2017 I plan to:

Care to Comment?

Name

Email (optional)

Blog (optional)