This has been on my list for the past few years. 20% of pre-tax income has been our target for retirement savings — a high enough number that we should be more than on-track for retirement, but a low enough number that this is not a regimen of deprivation (at all). In 2021, we opened up a taxable brokerage account, threw money regularly into VTSAX, and were rewarded with a great year.
In 2022, a chunk of our savings will be dumped into our house down payment, so I’m not sure we will hit 20% in pure retirement savings (though maybe I’ll be wrong – that would be awesome). However, down payment $ translates to equity which should appreciate with time so it’s sort of wealth building anyway — I know some debate whether home value should ‘count’ when one is calculating net worth.
We do continue to use YNAB and Josh and I do quarterly financial reckoning where we check each account and calculate net worth to see how we are doing.
~3% college savings
That leaves 42% to spend on both the necessary and the fun, which should be plenty. (Note to self: need to not procrastinate on our actual move too long b/c paying rent + mortgage is going to be a drag on the system . . . .)
ALSO – it’s a new year!!!! Past couple of days have been relatively relaxed. Yesterday no one got dressed until noon and we spent 3 hours at the playground. Last night’s NYE dinner = family charcuterie board!
NYE 2020 we made a video where Josh commented that he could not smell his champagne (we all had COVID). So this was a big step up!