I tried to shoot for about $2 saved for every $3 I spent on living expenses. So If I spent $1600/month, I'd aim to save about $1100.
Part of me feels I'd be more comfortable if my saving and spending were identical. So if I were making 3k a month after taxes, I'd want $1500 saved and $1500 spent on living expenses.
But part of me feels that would require lifestyle changes I don't want unless I truly need to make them (living with a roommate for one). So I tend to go with the 2:3 ratio instead of a 1:1 ratio. I can do a 1:1, its just not worth it to me.
However there is something liberating about knowing that if you work for 2 years straight, you can afford to be unemployed for 2 years straight. It makes job lock far less terrifying (granted, health care in the US is a total mess and can really alter these calculations).
do other people have a ratio?
December 09, 2017 at 10:58AM
