I make less than you ($46k-$52k USD) in a pretty HCOL city and I'm currently working on pushing my savings rate from 50% to 60%. Rates as of Dec 07, 2020 ET. ATM/Debit card is not available for this product. See if there is a credit union near you. I have a 54% SR, and am in the 1 and 3 categories. This was too much, so I developed an interest in making cocktails at home. Into another savings account? From my calculations, in my best month I’ve only been able to hit around 30% but most months I’m in the 10-15% range. Not sure if its worth dropping or should I just wait it out. I'm sure a lot of people on here are wondering the same thing, actually. They have the highest interest rate of the known banks and are usually the first to raise their rates. I can save 66% on $60k and I don't feel like I'm doing anything crazy to do it. At a brick-and-mortar bank, you'll often find savings rates closer to the national average, which is currently 0.05%. $100 went to mindless decisions to grab fast food or to buy lunches at work. Very easy to use. Very impressive! No TV (but fast Internet), don't eat out too much, and pay cash for everything possible. A savings rate of 60% is someone or someones that are earning a lot, spending minimally and staying focused on retiring early, without SS or most retirement plans. We live in a beach community on the west coast, where the median house costs about $900K-$925K (so #3 is out). On a side note, I've had no issues with Marcus and their website. Currently, Outlet Finance has the highest interest rate on the market. Already have money from family/inheritance/trust that funds their life while they save 60%, Are living free from friends/family. The fed has cut interest rates 3 times in 2019, that's what happened. I’m back to earning 3% interest (on $15k max) on my emergency fund! We're older and make more money than you do. To me that seems damn near impossible to hit. Once I had a dollar cost by category, I asked myself how I could get 90%-100% of that benefit without spending nearly as much money. $1000/mo for 12 months at 2.30%: $12,127.31, Total with $1000/mo for an additional 6 months at 1.70%: $18,252.05, Total if it stayed at 2.30% for 18 months: $18,296.27. I'm curious if anyone has any review of Vio or any other online savings account. Due to this guaranteed doubling, newer issued bonds have an effective minimum compound annual interest rate of around 3.53% if cashed exactly 20 years after purchase (older bonds that double in 17 … Over the last 6 months, Marcus has reduced their rate quite a bit. 0.55%. A savings rate of 15% for your working life will usually be sufficient for retirement. I am in almost the same predicament-- saving for a house, have an Ally savings account that started at 2.2% and has dropped to 1.6% in the past few months. Probably not. There are usually no monthly service fees associated with savings … We own all 3 cars (commuter, SUV, & classic truck). I make $56,000. Press question mark to learn the rest of the keyboard shortcuts. Imagine saving 60% on 50k. I know I probably spend too much on going out/eating out each month and would also save more if I didn’t pay for my GF so often. The 2.10% interest rate applies when you open a USaver savings account, link it with an Ultra transaction account and deposit at least $200 a month into it. Generally, I host friends more often instead of hitting bars. Fight me. 0.55%. We generally don't really include them in our saving rate though. Stay with Marcus. 0.60%. Few of us had a 50%+ savings rate right out of the gate. I want this money to be liquid for a home purchase in a year or two. Very difficult. 5. about 4x what marcus pays. Pretty much everyone will be under 2% by end of the year. Now take that and apply it to every single area of your life. *To qualify for the 0.70% APY you must open your new My Checking account and have a monthly Direct Deposit of at least $1,000 from a third party to your My Checking account. If my plan is to save for roughly another 6 months, does it make sense to switch to a different online savings account, i.e. No real sacrifice here except slightly more mindfulness. Simple is not strictly a savings account, but you can earn up to 0.60% APY on the money in your high-yield account, and there’s no minimum balance required to earn that rate. If you keep increasing your income throughout your career while resisting the urge to splurge, that savings rate is definitely possible. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. $100 went to restaurants. As others have mentioned, many rates are low currently. I used to spend about $350-$400 a month on restaurants/going out/dates/alcohol. Join our community, read the PF Wiki, and get on top of your finances! You can move it to another saving account, but that one can drop at any time as well. Would like thoughts. The agreement between him and his parents is that he makes out his 401k every year. I opened a high return online savings account about a year ago through Marcus by Goldman Sachs with an initial APY of 2.30%. Investing in yourself and your capabilities early in your career can yield better returns than most alternatives. I think that the most common tactics are: Earn 6-figures and live a regular middle class life. Is it based off gross or net income? A Certificate of Deposit is a type of savings account that has a set interest rate and withdrawal date. It's not about deprivation, it's about understanding the trades you are making every day instead of abstractly feeling like expenses are outside of your control and there's no way to save enough. There are no monthly fees or minimum balance requirements for the … Options depend on your purchase amount, and a down payment may be required. Imagine saving 60% on 200k. For everyone shooting for FI, these are the top couple of points that kept spending low enough to hit 50%: Rent/buy as little house as you can be comfortable in, Pay the premium to live within walkable/bikeable distance of work and grocery, don't own a car, Live with roommates until at least age 30, preferably longer (an SO counts). Vio Bank, that's currently offering a high APY (currently 2.05%) or should I just stay with Marcus and forget about the ~$20.00 dollars I wouldn't realize. Same with Discover! If I were writing this for how I personally am saving 60%, I'd go with: As a European a large amount each months cause to forced "savings" towards social and health care. Compared to checking accounts, savings accounts usually carry higher interest rates … I recommend that you track and categorize every penny entering and leaving your bank account for the next couple of years. How do you guys do it? Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. Affirm savings … Press J to jump to the feed. You need to be thinking in terms of how much you spend, and you need to understand those numbers and how to improve them, category by category. Share Savings, Checking, … The fed cut the interest rates 3 times this year. I moved 90% or my money from an online HYSA to a local credit union checking account. Savings accounts are designed for a low volume of transactions and have imposed limits of six transactions per month. Why did high-yield savings rates go down in 2020? Expenses were high four figures low five figures and I made really good income for what i did and for those three years I had a 80-90% SR. Then i got married and wife had a good paying job so we stay around 60-70% SR. See the HSBC Direct Savings Terms & Charges Disclosure for more information. Otherwise, the rate is 0.40% … The bank currently offers a 2.00% APY for the first 12 months after you open a new consumer money market savings … Press question mark to learn the rest of the keyboard shortcuts. But my guess is we will see a lot of European FIRE people in 20-30 years who have based their calculations off of american estitames and suddenly realize they will get something 2-3k worth of retirement income on top of their calculations. Actual Expenditure. No TV (but fast Internet), don't eat out too much, and pay cash for everything possible. Live an exceptionally frugal lifestyle with a great deal of sacrifice. $150 went to bars/alcohol/cabs. Bump. Now I make cocktails that cost $15 at a bar for $3 at home and invite my friends over to show off my skills. I'll give you an example. Saved a good chunk for being 28 years old. Tangerine Savings Account (0.10% to 2.10% promo) Tangerine is a subsidiary of Scotiabank and was formerly known as ING Direct. If I could add something, it would be that in addition to cutting expenses that adding income can be a worthwhile goal and may be easier when near the median income level. $250,000 & over. Choose from six, twelve, twenty-four, or thirty-six month terms, or take advantage of our special sixty month term rate. In some cases, the rate remains the same over extended periods. I really liked this feedback. My total expenditures for 2020, recorded using a cash account method, were $30,331.74, delivering a savings … Savings bonds are an easy way for individuals to loan money directly to the government and receive a return on their investment. In total, I now have about $200 extra in my pocket at the end of the month and I don't feel like I'm missing anything. Even the high yield accounts are low compared to where they were a year ago: For example, Ally is currently 0.6% APY. You're thinking in terms of what's left in your bank account at the end of the month. I know I probably spend too much on going out/eating out each month and would also save more if I didn’t pay for my GF so often (not an argument worth having every time I go out). Someone posts this topic daily at this point. This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. It's much easier with Mint/Personal Capital. The Federal Reserve began lowering rates in July 2019. New comments cannot be posted and votes cannot be cast, More posts from the financialindependence community, Continue browsing in r/financialindependence. Only pays taxes. Rates on variable rate accounts (i.e. Simple actually … Press J to jump to the feed. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. Live in a low cost of living area with high cost of living type earnings. It's a far more productive use of your time. I originally got it at 1.80% APY, it went up to 2.3%, and is now back down to 1.80%. How do some people have a savings rate of 50% or more? Earning more makes it a lot easier to save more as long as you resist lifestyle inflation. This spending mattered to me, so I kept it unchanged. My goal was to start putting $500.00 to $1000.00 away each month to save for a down payment on a house. 0.60%. Or if there's a better savings account I should look into. Everyone is dropping rates and pretty much any bank you find online will be under 2% by the end of the year. Ally's rates might not be the best, but they are close enough for it to not matter. At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. 2. HSBC Direct Savings can only be opened online. I tried to explain the concept of marginal tax bracket and how it's only the additional money that is taxed at the higher rate… We own all 3 cars (commuter, SUV, & classic truck). This is the wrong attitude, it lacks agency. Though, 1 and 3 are similar, just worded differently. Credit Karma Savings is a high-yield savings account that currently comes with a 0.40% APY as of November 2020, which is significantly higher than the national average of 0.05%. If you're going to switch accounts, you might as well get some sign up bonuses. We have 2 kids (17 & 12) and a couple cats. It's primarily #1 (but only this last 1-2 years), plus #2. 2/3/4 combined is very powerful for people who aren't six figure earners by themselves. Credit … That math only works if assuming he can find another online savings for 2.3%. Others range … Much easier. Do a little searching on the sub to find all the times its been discussed recently. I love USAA and their customer service but 1.75 and .1 is too big of a difference to pass up on. Any suggestions, ideas, or personal experiences would be greatly appreciated. A savings rate of 60% is someone or someones … It's still better than a Brick and Mortar bank's rates, I guess. 30% of Yearly Salary (net) $31,378.14. 1 The Annual Percentage Yields (APYs) and balances for an HSBC Direct Savings … I let friends and family know my financial situation. 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