What percentage of your income do you save?

[Chris F.]

This goes to the heart of RE investment. The first step in investing is the ability to manage your money properly, so being able to save a portion of your income is key for the financial house to be in order. There is a lot of focus these days on "extreme savers": folks who save more than 50% of their income. I count myself in this category. I did some calculations recently and though I was targeting a dollar amount, I realized it amounted to about 60 % of my net. It's a personal choice, and I'm able to live comfortably, without sacrificing anything "essential." Of course "essential" to me may not be what is essential to everyone else. While I think that this is works for me, it doesn't necessarily work for everyone, and it depends on many factors such as income, financial obligations, weather or not you have a family, etc.

So in that vein, assuming you have a set amount or percentage of your income you save, how much is it? Or if you reinvest your income back into your RE business, what percentage?

[Jay Y.]

I'm aiming for 80% this year. I follow the extreme early retirement model. No, that doesn't mean you have to live a deprived life by any means either! For instance, I recently started biking to work and spent $0 on gas last month. Probably the best decision I've made so far this year (the financial savings were just a bonus).

In general, I'm just tired of playing in the cave... so it's easy for me to reject consumer spending. That and I'm addicted to buying rental properties :)