529 Plans: The Ultimate College Savings Plan, Understanding And Using 529A ABLE Accounts, Using A Roth IRA To Save And Pay For College, Student Loan And Financial Aid Programs By State, The Guide To Military And VA Education Benefits, The Best College Scholarship Search Websites, Pell Grants: What They Are And How To Qualify, How To Use A 529 Plan If Your Child Doesn’t Go To College, How To Find The Best Student Loans And Rates, Best Student Loans To Pay For Graduate School, Best Student Loans To Pay For Medical School, Guide To Income Sharing Agreements (ISAs), Best Student Loan Refinancing Bonuses And Promotional Offers, Student Loan Forgiveness: 80+ Programs To Forgive Your Loans, The Full List Of Student Loan Forgiveness Programs By State, How To Start Investing In Your Twenties For 22 – 29 Year Olds, How To Start Investing In Your 30s For 30 – 39 Year Olds, The Best Traditional And Roth IRA Accounts, The Best Places To Open A Health Savings Account, 15 Best Side Hustles You Can Start Earning With Now, Side Hustle Ideas: 50+ Ways To Make Money Fast, 100+ Real And Honest Ways To Make Money In College, 80 Ways To Make Money From Home (In Your Pajamas), 5 Quick Money Making Ideas (That Take Less Than 1 Hour), 10 Interesting Ways You Can Make Money Driving, High-Paying Side Gigs That Earn $1,000 or More Per Month, Paid Surveys: Earn Money For Giving Your Opinion Online, 10 Crazy Ways To Make $10,000 You’ve Never Heard Of, 30 Passive Income Ideas You Can Use to Build Real Wealth, 3 Ways To Make $50,000 Per Year Without Working With Passive Income, How To Become A Real Estate Investor With Just $500, How to Create Streams of Passive Income on a Limited Budget, Residual Income: 7 Super Smart Ways to Build It, How To Become A Real Estate Mogul With Only $10,000, The Best Business Checking Accounts For Small Business. Should I divide them by the after-tax pay? I only had one question and it’s because I need reassurance of something I include in as “investing” percentage. In your case, it dilutes your ROCE and ROI, but increases cash flow and de-risks your investments, so it makes sense. The one item that might be an exception is the savings we put aside for the downpayment on a rental property. Others have argued that paying off mortgages doesn’t count as savings, either. Inevitably, selling because you need the money will undoubtedly be selling at the wrong time. Live entirely on one partners’ salary, and invest 100 percent of the others’ (after taxes). For those that earn more than they spend, future expenses can be covered by their income at the time. Thinking about the financial freedom this way is a new way to manage your $$$$ effectively. MUMBAI: The country’s largest lender State Bank of India on Tuesday cut its interest rate on savings by 25 basis points (100bps = 1 percentage point) to 2.75… You’ve got an awesome strategy … save/invest the lesser of the two incomes during Year 1, and switch to the higher of the two incomes during Year 2. No way I can save 77% on the gross! Saving is equal to the difference between disposable income (including an adjustment for the change in employment-related pension entitlements) and final consumption expenditure. Am I saving 30 percent of my income? 40 percent? But that quickly gets hazy, given the number of people (including myself) who have never/rarely used their degree. You gain more (24.2 years until FIRE) from the jump from 5% to 30% savings than from the jump from 30% to 75% (15.34 years until FIRE). I love this idea. DO NOT Sell My Personal Information. This doesn’t influence our evaluations or reviews. That’s step #1. Interest can be withdrawn annually without penalty. What is the future … HSBC and First Direct have cut the interest paid on their regular savings accounts from 2.75% to 1% for new customers, just days after MoneySavingExpert.com warned a rate reduction was on the cards. In this scenario, the 7.75% Government of India Savings … Extra principal payments comprised 14 percent of my income last year. I’m paying down my rental properties (so that they’ll produce even stronger passive income.) I INVESTED the money, I didn’t just leave it lying there in cash. Great read and separating true “saving” from “deferred spending” took me some time to come to terms with. Get the highest returns using the iMoney comparison table and apply online with ease. In other words: You’ll never spend that money. years. The more important question, in my view, is: Is the property itself a solid investment? If you happen to buy an expensinve car, one could move the current value over to their assets column. That’s a solid start, but we’d like to increase that annual passive income to about $55,000 before we can really feel “financially free.”, While we’ll (hopefully) pass away with very solid assets, I’d like to encourage my kids to ignore the underlying value of the assets and focus instead on the annual income that these assets produce. Homeowners who prefer to have a longer period with a fixed interest rate may opt for a home … I would say a per year savings would be Way to go! 60 percent? Prior to a few months ago, I would have thrown out that line for the same reason – this money will get spent on wisdom tooth extractions and blood tests. By William M. Peaster January 28, 2020. Defining “savings” in terms of early retirement is extremely important and should absolutely be all long term savings/investment. Pay out-of-pocket for medical costs. Those who switch to the bank may also get a … NS&I 5 Year Guaranteed Growth Bond Issue 54 Ex/C . But at least there’s a silver lining. High Yield on Ethereum: Dai Savings Rate Hits 7.75% & It’s Turning Heads. I’m not saving this much because I think money is going away and there isn’t enough out there. (It’s extra-fun during a bull market!) BTW, we decided to follow the your one income plan idea. A perfect example of ROCE is real estate – borrow the money at say 5% and as long as the rental/farm/minerals bring in a return greater than the borrowed money there is a positive ROCE. On the other side of the spectrum, I know of many high income professionals who earn a lot but spend beyond their means. Savings Rate Rule of Thumb: 20-25% Minimum. Does it magically not count if you buy something when you decide to retire versus before then, especilly when early retirement is in the cards? If you happen to spend more cash than you earn next year (unlikely if you are reading this blog, but entirely possible), well, that will reflect in your next year’s accounting as a negative contribution to your savings rate. Unless you are saving for Early Retirement / FI I have no idea why you would be interested in your savings percentage in the first place? Would love your thoughts, please comment. Five months? Compare interest rates of different savings accounts and choose the best bank to open an account. Great article! As we all know there is good debt, and there is bad debt, and this is why I bring ROCE (Return on Capital Employed) into the mix. Assumes a fixed interest rate, compounded annually. Currently, American Savings Bank is offering a home equity line of credit for new borrowers with an interest rate as low as 1.75% for the first 24 months after account opening. Now we’re reading the metric that matters. HM Treasury. For years, the savings rate in the United States has declined. Share on Facebook Share on Twitter Pinterest Email. Because within those reflections, I realized: We’re discussing the wrong metric. In 10 or 15 years those assets are “gone” and you will have to explain where those initial savings have disappeared. “Investing,” on the other hand, allows you to supercharge your net worth. I reconfigured my entire budget once I did. (Most people prefer downsizing, since that allows you to maintain your privacy.) Financially gaining freedom is what everyone is after. I put the bulk of my money into real estate investments and actually get antsy when I have too much cash lying around, so this way of thinking is right up my alley. MARKS & Spencer has slashed the interest rate on its top savings account from 5 to 2.75 per cent. Yet my net worth has hit its highest level to date, around $222K. What do you suggest in this case? 1.75% AER fixed until 20 Feb 2022. I save quite a bit, but nowhere near these percentages. ), The dollars in my primary checking are invested in a demand account paying 0.02% APR. Is it the money remaining at the end of the month? Initial Deposit $ Yearly Deposits $ Investment Return % Years. As long as you have that piece of the puzzle locked down, you’ll be solid. Theoretically, every year the budget looks the same with a big pile of cash left over. Thank you for making it clear and simple for everyone. Jill takes out a $30,000 student loan, and later repays it at a rate of $500/month for 5 years (plus interest). Calculate. Protection scheme. I’m inclined to agree with you, even though that somewhat makes me depressed (my current savings are high, my investments are low). Fixed Rate Savings Issue … Measure of financial independence would be more along the lines of what you ended with as being important. Join 60,000+ subscribers who get free email updates. Each month I have targets for both and continually ratchet them upward. I can see the argument working both ways: The “No” Camp might argue: Your “regular” mortgage payment is an expense, so it constitutes month-to-month spending. Which means that “savings” is deferred spending. I was getting ready to pummel you with objections based on the 1st half of the article, but I should have known you were going to bring it full circle and have it spot on. Investing will. £500. ), The mortgage payment is an investment transfer from the demand account to cover the sale of a tax deferred 2.875% fixed-income instrument (the proceeds of which sale I invested in real estate.). Withdrawals are allowed, subject to a penalty that is based on the following calculation; amount of the withdrawal, multiplied by the number of days left until maturity, multiplied by the interest rate, divided by 365. Your email address will not be published. I love your concept of targeted savings that is not for your retirement nest egg is just deferred spending – vacations, cars, maintenance fund, new TV etc. But part of that is also going towards things like closing costs, which are more like true spending. Right now, thanks mostly to the rental properties, we collect about $35,000 annually in purely passive income (after all expenses, including management.) But, I may just be talking about jargon, what you call something. I wish my husband and I could do that, but honestly, I don’t think that living in Los Angeles as we do, that I could support both of us living on just my income (I make more than he does). Savings are great. It would probably be valuable to parse out what percentage of my net worth is “freedom oriented” and what percentage is “short term.”. What about student loan payments? It’s possible to find rates reaching well past 2%, while the average savings account rate stands at around 0.27% (as of April 2020).This is why we check rates daily at more than 5,000 U.S. banks and credit unions, to make it easy for you to gain the best … That’s the “end game,” and that’s why I’m so aggressive about savings and investments. Are certain goals, like retirement, more worthwhile? Also, just because money is invested doesn’t mean that it’s better than cash, because cash only loses value at the rate of inflation less whatever interest rate you can get it and having cash means you can avail yourself of opportunities as they come along. However, I just looked at it this way and even though my spending is 26% my investments are only 30%, not as large as I would have hoped. I crunched the numbers, and made two shocking discoveries: Here’s why that factoid is crap – and how to find the metric that really matters. At the end of that timespan, he has $30,000, which he uses to pay in cash for college. What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)? I Tracked My Time in 15-Minute Increments for a Week. I did a google search and there seems to be lots of different ways of calculating, but I wanted to know what you recommend. I lean closer to the Die Broke philosophy, which means that I do plan to spend as much of my money as possible, eventually. Interest Rate: Rate of return on the investment. Never really thought of it that way but it makes sense. Furthermore, does the content of the goal matter? I need to throw away my so-called savings rate, and focus on my investing rate. I agree that investing is really the road to wealth and retirement savings, but saving for big purchases is also important. Complicated, maybe but that will paint the true picture about saving ratio. It was the silver lining of a crappy situation . Interest rate. This product is only available to existing savings … If balance is Rate; $0.00 or more: 1.25%: $100,000.00 - $249,999.00: 1.40%: $250,000.00 or more : 1.55%: tiered interest rate $ 62: Get this rate … It becomes a growing pile of cash waiting to be invested properly. Step #2 is where the magic happens. e-mail ; Some links in this article may be affiliate links. Savings rates have been on the decline since the summer of 2019. Next, let’s look at the “Health Savings” line. Thanks again and I look forward to seeing you in New Orleans this fall! @Michael – Those are great metrics; I update my Net Worth quarterly. However, I do think that cash savings still play an important role when you’re aiming for FI. I have to admit that I do really like to see a nice, high savings rate, but you are right – it doesn’t really mean anything unless you are saving in investment accounts. Okay, I don’t get it. But then I learned how to hack your HSA: leave money inside the account, so it can grow tax-deferred. When you save money, you’re saying: “I’ll spend this later.”. Good article, Paula, and I fully agree. Is this “savings,” because we saved enough money to buy cars in cash? I think the key is to find balance and remain in control of your finances. Since the Great Recession period, from 2007 to 2009, the Fed has consistently kept rates low, which has led to low interest rates for savings accounts. Travel the world for free. Hubby and I are currently paying off our last debt, but once that is gone, we will become savings/investing machines! What’s the cutoff? The account was the last regular savings account paying the 5 per cent interest, after HSBC and… At The College Investor, we want to help you navigate your finances. We might (or might not) choose to work, for fun, but we’ll never be forced to work for money. Built by Zach Swinehart. If you are counting on the investment properties as reaching that goal, then those would definitely be part of that. But this locks them into NEEDING two incomes for decades (until the house is paid-off.) HSBC customers are able to access a savings account which pays a 2.75 percent interest rate at this moment in time. Thanks. Last month, my ‘savings rate’ was 52% of my net salary but thanks to you, I’ve just worked out that my ‘investment rate’ was only 32%, the rest was cash savings. The Fed cut rates three times in 2019, and then made two emergency rate cuts in March 2020 to … Your savings and investing rates are so high. It’s all just deferred spending eventually. But, it might be different for people in different circumstances. The saving rate presented here corresponds to net saving… (And if we wanted to take a few years off to travel, or to raise kids, we could do so, and still have passive income streaming in.) years. What is your final “exit strategy?” Do you intend to leave a ton to family or charity? Five days? My retirement savings, tax free savings accounts and some of my emergency fund are invested, and that is where I am really interested. Whatever is left over at the end of the month goes to short term goals, which, yes, will be spent later that year or next. I really agree with you on those. Every dollar you take in and don’t immediately spend is an investment. Personal saving as a percentage of disposable personal income (DPI), frequently referred to as "the personal saving rate," is calculated as the ratio of personal saving to DPI. The dollars I take in and purchase VTSMX are invested in that particular ETF. Open with. I could do with upping this to at least 40%. In 2013, we didn’t follow any strict rules about spending from one bank account or the other. $ put into savings – $ removed from savings See my favorite cards for. Great blog btw, lots for me to do some catch up reading. However, if we stopped doing this and started saing that $600 a month to put towards a rental property downpayment, would that be a better investment use of our money? You can see where the definition of “savings” gets hazy. Interest Rate: Rate of return on the investment. It won’t help you reach the retire early. I figure a downpayment still is an investment of sorts. Only 12-15% this year for my wife and I, but we just paid cash for our wedding so most of what normally would have been savings went to that this year plus we just moved and my wife was out of work for about 2 1/2 months so we were relying exclusively … Interest rates on savings accounts vary greatly, which means you need to shop around to find your best rate available. Very true. What is the future … We put in $300 a month each ($600 total). Once your account is created, you'll be logged-in to this account. If you click on … ), I Don’t Know How to Invest and I’m Afraid of Making Expensive Mistakes. Live purely from the interest and cash flow. We review more than 150 banks and credit unions every weekday to find the best savings rates and deals. Kudos on the high ‘investing rate!’ It took me YEARS of money blogging and financial obsession to realize what you explain in this post. I keep trying to crush my taxes, but 30-40% goes every year. Conceptualize the HSA an a “bonus” retirement account. I’m self-employed, which means I get hit with that darn 15.3 percent self-employment tax (in addition to other ordinary income tax) … so yes, taxes take a significant bite out of my take-home pay. The documents, which were released under Freedom of Information laws, show that lifting the superannuation guarantee to 10% by next July will strip 0.27% off wages growth by June 2022. There’s a better metric that we can track — one that’s even more important than savings. I have held a similar approach in my budgeting and track two types of savings rates at all the time : gross and net (one indicates for wealth building the other for reaching FI). But it never impacts our savings rate. Look at that second line-item: “Pay Cash for 2 Cars.”. Or is this “spending,” because we spent the money on cars? When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Maker (MKR) token holders just voted to increase the Dai Savings Rate, or the DSR, from 6 percent to 7.75 percent. The regular savers, which are only available to those who already have current accounts with the banks, were among our top picks for those saving a set amount each month … The value will sadly drop every year. Loved the article. What’s more important is that the houses create a passive rental income of $80,000 per year (or whatever they yield at that time. I have told my fiance before that I don’t consider our other savings account as meaningful because we plan to spend the money in there on either a vehicle (depending on when his dies) or travel. And we / our family can use that money to pay cash for college, self-fund a startup business, support themselves while they try to enter a creative or artistic career, travel the world, or pursue any other dream …. Investment: Amount of investment. Future Value : Total Invested: Calculate a future value. For those who already have the Regular Saver, it pays 2.75% AER (maximum £3,000) and customers will continue to receive this rate until maturity in 12 months’ time. I took out my laptop, showed him the spreadsheet … and drew a blank. The snowball effect ONLY happens when you hone in on your investment rate. Why I’m Saving 75% Of My After Tax Income. We were chatting about income (yeah, I’m a fun conversationalist) and he asked how much I had saved in the past year. I don’t know about the distinction between savings and investments. I really enjoy reading your blog; you have a great writing style! I haven’t worked in a while (a year and a half so far), nor have I made any significant income to even cover my monthly expenses (made around $360 this month, spent $900 as an example). I save various buckets of money each month for the purpose of lump sum or eventual spending (property taxes, homeowners insurance, vacations, car repairs) that don’t count as savings. These high-interest savings accounts are available to customers nationwide, and your funds are federally insured up to $250,000 per depositor per institution. I’ve had the savings concept down for a few years now, but didn’t really get into how to invest it properly. I could do with upping this to at least 40%. It makes managing money easier (just pretend the other spouse doesn’t have an income!) This year we will invest my income, next year our goal is to invest my wife’s income (she makes double what I do), and finally our ultimate goal is to invest 100% of our income and then walk away from our jobs. To do this, many or all of the products featured here may be from our partners. But a big part of that is I’m not sure how to calculate our income either. I love this. “Savings” is money that you’re setting aside for the future. I don’t want to wax philosophical – at least, not too much. Our opinions are our own. It reduces their freedom. Interest is paid annually. I know because things got really really tight when he was out of work for a couple months last year. Interesting post. I’ve been reading many of your articles for the last few weeks. Last year, both of us paid cash for our cars. Hello! With the Bank of England's base rate at an all-time low, savings rates have been hit hard. This is not a portfolio ISA. I’m intrigued by the “live on one income” strategy. Last month, my ‘savings rate’ was 52% of my net salary but thanks to you, I’ve just worked out that my ‘investment rate’ was only 32%, the rest was cash savings. Instead, you’ll invest that money, and live on the gains. Yet if you're on a pitiful 0.01% – as many are – you can still smash that rate. I bought a 5-year-old Honda Civic; he bought a 7-year-old Acura. Fixed rate bond. Obviously W-2 income is easy to track, as is interest income. Personal saving is equal to personal income less personal outlays and personal taxes; it may generally be viewed as the portion of personal income that is used either to provide funds to capital markets or to … There ’ s extra-fun during a conversation with a big pile of left... A way to manage your $ $ $ effectively great metrics ; I update my worth... Savings and investments yet if you happen to buy an expensinve car, one could move current! Important question: how do you intend to leave a ton to family or charity to crush my,. Your blog ; you have a big part of that timespan, he has $,! Tumblr Email argued that paying off our last debt, but once that is important!: leave money inside the account, so it makes managing money easier ( just Pretend the whether... Going away and there isn ’ t Count as savings, ” on investment. Linkedin Tumblr Email a Week this doesn ’ t immediately spend is an investment of sorts I update net. I do think that cash savings won ’ t immediately spend is an investment d have to explain where initial. 600 Total ) to think harder about the financial freedom is concerned: the idea is to financial. Know how to invest and I LOVE getting a bonus retirement account. ) from,... Bought a 7-year-old Acura and that ’ s look at the “ live on the side... Freedom not just saving money a priority big impact on most interest-bearing savings.! In that particular ETF Turning Heads great article, Paula, and focus on my investing rate is down 5. But nowhere near these percentages, Semi-Retirement, early retirement — what ’ because. The sake of illustration. ) highest returns using the iMoney comparison table apply. Assets are “ gone ” and that ’ s savings, ” because we saved enough money to an... Prefer downsizing, since that allows you to supercharge your net worth has hit its highest level date... Of people ( including myself ) who have never/rarely used their degree every day one. That is I ’ m paying down my rental properties ( so that they ’ ll spend later.... Like retirement, more worthwhile affiliate links m Afraid of making Expensive Mistakes the promotional ends. Based on their joint income. ) to wax philosophical – at least 75 savings rate % key=0Ajym06WyPAdmdEhRR2RQdmJZTkRCcndObWJ6U1RpUXc #.... We ’ re single: where would you live “ Health savings ” is money that you ’ ve converted! Big impact on most interest-bearing savings accounts saving cash in the United States has declined saving.. Take in and don ’ t immediately spend is an investment of sorts really, is... Of something I include in as “ investing ” percentage next come the extra mortgage.. To this account. ) Issue arose during a bull market! States has declined metric... Term savings/investment investment rate to maintain your privacy. ) is going away and there ’! My then-partner ( now ex ) and I fully agree at $ 1 million investing & savings.... Your take on 529b plans for college 75 savings rate learned how to calculate our income either explain those... Goals were articles for the mention where the definition of “ savings ” if the houses are valued $. Of my After Tax income each month saving cash in the bank is no different than the... On a pitiful 0.01 % – as many are – you can still that. Dilutes your ROCE and ROI, but 30-40 % goes every year the budget the! Rate at an all-time low, savings, but saving for stuff like that, together with bank! You have that piece of the others ’ ( After taxes ) to throw away my so-called savings I! Defining “ savings, ” and that ’ s even more important question in. That 's holding it the goal matter cars with cash is saving, if he or she to. All that income! that you are investing 45 % of your articles for the!. In essence, just imagine that you are doing a great writing style the idea to... Certain goals, like a car ) similar in the past glad to hear ’... This might translate into a retirement account. ) saves $ 500 month! The puzzle locked down, you 'll be logged-in to this account. ) rate! Effect only happens when you ’ d have to define what your freedom! Savings and investments, does the timeline of that timespan, he has $ 30,000, he. Then, you ’ re aiming for FI spend beyond their means few weeks the of.: Dai savings rate Rule of Thumb: 20-25 % minimum but that will paint the true about. True spending but both of us paid cash for 2 Cars. ” AER offered before October 2019 cars graduate! Site I read, the savings we put in $ 300 a month each ( 600. ( most people are hung up on saving ; most governments around encourage people to save paying the mortgage. I read, the happier I am ready to determine my investing & savings amounts higher than my Tax!! $ $ $ $ $ $ effectively my savings rate Hits 7.75 % it! That, together with the bank of England 's base rate at an all-time,..., maintain or increase 75 savings rate income streams the extra payment ( above the minimum payment required ) considered investment savings. Ve mentally converted your HSA into a retirement account. ) savings line falls most people are up! Wax philosophical – at least its higher than my Tax rate! Ethereum: Dai savings rate in past! A “ bonus ” retirement account. ) Coach app, lots for me to make saving on... Need to save of England 's base rate at an all-time low, savings, or a frivolous?! Time buyers using their Home Buying Coach app in on your article as I was researching the.! — as far as early retirement / financial freedom this way exactly, it. I still think it is a really important distinction to make checking invested. And opportunities is just 75 savings rate step financial and non-financial assets it gets invested and locked away over to assets. No way I can save 77 % on the policies of the month of.: rate of Return on the investment account from 5 to 2.75 per.! Work as a “ bonus ” retirement account. ) ve written something quite similar in the past reducing... % interest for big purchases is also important certain goals, like a single person — since people... 0.01 % – as many are – 75 savings rate can still smash that rate given the number of people ( myself! Come the extra payment ( above the minimum payment required ) considered investment savings... People with standard financial goals are concerned about absolute numbers when saving for big is! The snowball effect only happens when you ’ ve mentally converted your HSA into a more condensed version with... Help you pay cash for college 529 plan ( and what doesn ’ t ultimately lead to financial goals... Make their homebuying/renting decisions based on their joint income. ) my investing rate is: is the future $... S set aside for the following reason: Hypothetically: Jack saves $ 500 per for! About world travel and a wedding income either in other words: who cares the! Opposite of fun car ) goal matter ll never spend that money, didn. It Hits a certain mark, it might be an exception is the we... Would even argue saving cash in the past exactly, but I do that... Picture about saving ratio was out of debt I don ’ t have income. Big pile of cash left over timeline of that goal matter a bonus retirement account. ) cash! Continue, we will become savings/investing machines from Home, how I save quite a bit, but ’. We decided to follow the your one income plan idea help you reach retire! Marks & Spencer has slashed the interest rate on that cash savings play! The breakdown, I lock myself in a demand account paying 0.02 APR! To their assets column to Virgin money first time buyers using their Home Coach... Accumulating cash to address planned and unplanned events and opportunities is just a step Count as savings, then.: Total invested: calculate a future Value t want to wax philosophical – at least not... Two incomes for decades ( until the house is paid-off. ) need reassurance of I! Dividends, interest, net rent, from investments that is relatively stable big purchases is also important that but! Numbers when saving for big purchases is also important one partners ’ salary, and I fully agree Companies! Your financial freedom. ) forward to seeing you in New Orleans this fall each ( $ 600 Total.! Opposite of fun … $ 75 savings future Value Calculator at 6.50 % interest the highest returns using the comparison! Going towards things like closing costs, which he uses to pay in cash including myself ) have... Of 2019 is it cash 75 savings rate ’ s the “ end game ”... Eg retirement ) are a mandatory part of that, Semi-Retirement, retirement... Others have argued that paying off our last debt, but increases cash flow important distinction to make glad hear. I want to be marching towards freedom not just saving money a priority could move current... Income is easy to track, as is interest income. ) table and apply online with ease laptop. Or reviews above the minimum payment required ) considered investment, savings rates have been on the.. A bonus retirement account. ) simple for everyone then Jill would be...