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I Save 45% Of My Paycheck.

I don’t really know how much I save since I deduct or withdraw everything out of my paycheck automatically each month. I only use the left over money. Out of curiosity, I looked at my last paycheck and did a quick calculation to see how much I save each month. Wow! I put away almost half of my paycheck each month! I used to distribute the money in 401K, Roth IRA (mainly Growth funds), cash savings and non-retirement stock and bond funds. Since I am saving money to buy a house, other than the 401K contribution, everything else goes to my online saving’s account these days.

So to give you an idea of what saving half of the paycheck feels like, here is a summary of my life style and spending habits comparing with those of my co-workers who make the same amount of money:

Cars:
Co-workers: Bimmer 3-series is normal. Many own Mercedes or large SUVs

Me: Toyota RAV4

Homes
Co-workers; 400K – 500K is normal for my co-workers. Many have vacation homes too.

Me: Bought a home for my parents for 245K. I still rent and live in a one bedroom apartment. I am about to buy a home in 4 months.

Family
Co-workers: married with kids
Me: single and no baggage

Vacations:
Co-workers: Cruises, Hawaii, Europe, Carribean vacation experiences are constantly brought up in our weekly status calls.

Me: I can only spell “C-r-u-i-s-e”. Ok, I do hop on the planes a lot to see friends and families. Matter of fact, majority of my monthly spending is related to travel.

Nail caring
One of my female coworkers have in-house manicure and pedicure service every week.

Me:
Buy some nice bottles and do-it-yourself.

Here is a post about my spending habits and my budget.

Ok, I admit that my income is probably in the top 10%. I just try not to spend what I make. The fact that I am single with no kids also helps a lot. I guess right now is the golden years to save before the little ones come out to empty my piggy bank. :-)

2558 Comments »

  1. Kyle said,

    April 20, 2006 @ 1:50 pm

    Congrats on saving 45% on your paycheck when most people in the US have a hard time saving a dollar! (I just wrote about that in my pf blog.) I don’t have a family yet either, but this is the time to save up for the future.

  2. » Around The Blogosphere » Consumerism Commentary: A Blog About Personal Finance said,

    April 21, 2006 @ 11:18 am

    […] Free the Cow Project saves 45% of her paycheck. […]

  3. frank said,

    April 21, 2006 @ 12:01 pm

    Congrats. Having a family does changes things though.

  4. James said,

    April 21, 2006 @ 4:42 pm

    Ummm…. “I am glad I know that you save 45% of your paycheck, and im glad I know the mechanics behind it”.

    At least thats a nicer approach to my previous one.

  5. Wanda said,

    April 22, 2006 @ 6:16 pm

    Hi, I started reading your blog at Yunasville, and am very glad you decided to do a personal finance blog. Many of my friends dream of working as consultants (and I guess traveling’s a perk when you’re in your 20’s!). :)

    P.S. did you ever think about working in management consulting? I think they travel less than IT consultants.

  6. Yuna said,

    April 23, 2006 @ 5:10 pm

    Thanks guys! I am hoping to save 4.5% when I have a family so fingers crossed… :-)
    Thanks for dropping by Wanda. I actually quit the consulting job a couple of months ago and working on education and training now… It is a great job to have when I was in my 20’s.. but flying out of the town 5 days a week, 48 weeks a year for 10 years straight will do serious damage to anyone… I couldn’t deal with it anymore.. It was a floating life with no stability.. I couldn’t join a gym, no steady friends, didn’t have time to enjoy my hobbies.. It was work, hotel room work hotel room, airport, work, home, crash, then airport again… I am too old for that… :-)
    I think I am done with any type of consulting work… at least for now… The education job gives me an opportunity to work internally within the company. AFter 10 years working for the clients, I don’t even know how to use my own company’s facility… Took me a while to get a new badge too.. haha…

    But like I said, the consutling life is great for the young people. It is a fastest way to accumulate experiences since you work on new jobs every year. It is very stressful because as soon as you get comfortable, you will have to switch environment, people, technology and ways to do business…. I have seen people bailing after 6 months… But it’s defintely the fast track…. And Money IS GOOD!!

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