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URL:  http://boards.fool.com/20k-doesnt-really-even-move-the-needle-in-what-30497362.aspx

Subject:  Re: Marriage Penalty Returns Date:  1/21/2013  12:27 PM
Author:  SamuelClemens Number:  117470 of 121568

$20K doesn't really even move the needle in what I imagine your savings to be. It's nice and all, but it doesn't seem like that much money to me.

I can understand this sentiment. However consider that there are only two ways to save money, increasing income or reducing expenses. Looking at the actual numbers for our 2012 family expenses, here are our top line items: Taxes $223K, Gifts $12K, Groceries $10K, Entertainment $10K, Auto $9K, Home Repair $9K. Thus, $20K is not haircut money. And at our tax rate, we would have to make an additional $40K to replace it.

But yes, our savings our substantial. A single day of trading and our savings can easily vary by $20K or more. But we have achieved this amount of savings by living below our means (comfortably, but below our means). I know we make a lot of money, but also consider that people don't line up to give you this type of salary. It has come with a lot of education, sacrifices, risks taken, responsibilities, and some unique capabilities. Our work environments are intense. The $20K per year savings to me represents a year earlier we could retire. A year spent pursuing hobbies and not doing things like business travel and yearly reviews (as this weekend was partially spent).

And I am only considering it at this point, and there are only two votes who count, both with veto privileges.

Samuel Clemens

Samuel Clemens
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