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It’s going to depend on your cost of living and income. For reference, my breakout is somewhere around:
$132K income @ age 26
- 51% saved / invested
(max 401K, max Roth IRA, cash)
- 28% taxes
- 21% everything else
Bowl Leader
I would say a good baseline is 15% to retirement accounts plus an additional amount for goal focused savings (car, wedding, house, kids college fund if applicable). As your income rises ideally you'd target maxing out retirement accounts but I wasn't able to do that personally until I made SM.
Max out retirement accounts and save 50% of your paycheck
This is what I mean when a said somewhere else in this post that there is no one number. There are too many variables between situations that make a reasonable number for one person impossible for another. My suggestion to all is have a reasonable living budget and save/invest as much as you can.
My goal is 80% of post tax income. Usually end up hitting 70% though.
Pro
OP, let's translate this to your situation. What's your after-tax take home? Assuming around 60k, if you spend the same as ACD1, that leaves you 15k to save, or just under 19%. So you're close, FWIW. If you hang around places like the FIRE bowl, people will tell you that's way too low. But only you can decide what you value and how to strike the right tradeoff. Just keep in mind that a high savings rate, especially young, will give you years of compounding, which can be powerful. If you're going to sacrifice that power for spending here and now, just do it with your eyes open.
I don’t think there is a reasonable number. People have too many variables that make a generic percentage meaningless.
I don’t recommend using AGI. Use non-investment income.
AGI as a metric includes capital gains, dividends, distributions, etc. This would include growth from investments, which most reinvest as “already saved $” and you don’t want to count it 2x.
Conversation Starter
Sorry I edited the OP. Meant to say gross salary.
OP I’m at a similar level (1.5 YOE) with 70k salary, so I’m happy to share where I’m at! When you say 16% savings is that investments + cash savings?
I’m in a similar COL area. Right out of college I was in about the exact same spot. 10% into Roth 401k and about 7.5% into cash savings. Was able to increase my roth to 15% after a year, so now I’m saving 20-25%of gross salary. Plan to just keep increasing the portion going to savings/retirement with each pay bump!