I am really worried about my saving rate.
Currently it is 15% after taxes, mostly in RRSP and a personal retirement plan. I also have an additional company retirement plan; since I started quite late in my life, there is not much accumulated in these accounts. So I feel poor and not doing well financially…
Here and there I see bloggers who say they save up to 50% of their income. There is at least one famous blog site that claims to save more than 70% by living super frugal.
I feel the stress of not being able to save such a huge part of my income; can I do better? Yes. Should I feel bad about myself? I do not know….
It is impossible to save a huge amount of my income; my fixed expenses (mortgage, insurance+tax, transportation, grocery and other expenses, not including the socials, family visits, donations, and house maintenance costs) is around 65% of my after tax income. I cannot think about not visiting my family or not taking care of my house. So the most I can save is 20-25% of my income each year.
Still not as good as some other bloggers’ savings, but this is the percentage I will aim for.
Before that though, I must fix my emergency fund and then my weekly budget. I anticipate around a year before I can start saving (and investing) 20-25% of my income.
A year!! What a long time to wait for a person like me who is very impatient. Arghhh.
Is something wrong with me and my life-style?
No. I am generally a frugal person. My mortgage is reasonable, I do not have a car, I do not have children or other dependents, I do not live in a big house (okay maybe it is big for a single person), I do not go to vacations (only family visits), I do not buy the latest technology (in contrast I use whatever I have till they get unusable), I do not dine out frequently, I am not interested in fashion, I do not have expensive hobbies (other than books that I am on shopping freeze now), I brew my own coffee at the office, I am not interested in fancy furniture, clothes, or shoes etc.
So what is it?
I guess for single people compared to married people with two incomes, saving is harder. I will remind myself not to compare my situation with others. I will also patiently or impatiently wait another year till I can start saving and investing more for my future.
That is my conclusion.