| As others have mentioned your tax rate is way too low. And do not forget Social Security. Secondly you have to consider that most peoples spending rises to the level of their income. It takes a lot of will power to cook dinner verses ordering out ... EVERY DAY. Third are you planning to get married? Have kids? They will ensure your take home pay is about 5% less than what they can spend. Relatives in need? If you got money they have needs. If you are making $250K a year (20K a month) before taxes, after taxes you are probably pulling in 12K a month. Do you want health insurance? Dental insurance .... If you are pulling in that kind of cash you probably live somewhere expensive - they do not pay that much in Mississippi or Mexico. Rent / mortgage 3K maybe even 4K. So after rent / mortgage and insurance you are down to at most 7K. Cable? Power? Water? Internet? Game subscriptions? Are you going to drive that old car? Vacation anyone? Oh right you are saving for when you are 55, so you will stay at home for vacation. Add in a gym membership. If you are going to save your money for when you are older, then you will want to keep fit. So what do you think about those old clothes you wear? Finally as your investment egg grows, what about the taxes? Yes they charge you income tax on a lot of it. If not now then when you pull it out. All of that said, you could make a great startup, or join a great start up. Which could make you rich, but that is like the lottery. But that is hope, and hope is not a plan. To keep from overspending, which would put you in the minority, try to squirel your money away in a retirement fund. You will have to wait to 59.5 to start pulling it, but it has a better chance of being available. |