Quote:
Originally Posted by 930addict
The problem we run into with this method is we don't limit ours spending for things like food and entertainment. We can easily spend $1200 a month on food for a family of 4 and my kids are only 7 and 8 and don't eat much!
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Wow, that's easily twice what we spend on food (about $150 a week) for the 4 of us, 21 year old girl, and 16 year old football player boy.
I have been at 15% (plus 3% company match) in my 401K for a few years now, and investing rather aggressively in that has given me around a 30% return every year for the last 5 years, so the amount has grown astronomically. I love listening to the success stories on Dave Ramsey's show, I think more people should do his course and learn to live frugly.
Along with the large 401K, I have a company pension and we paid the house off 2 years ago, so retiremnet in about 10 years is not a souce of concern, rather it is something I look forward to greatly.
We drive older used cars, wear non-designer clothes, have older furniture and appliances, and heat almost exclusively with wood from my own property. This sort of frugality has allowed me to help both kids with college, cars, and build my wife a huge horse barn /indoor riding arena.
I'm not quite sure what the OP meant by committing 30% to "lifestyle" ??