I didn't say 90% to assert 10%, -3% is the true national savings rate as of March '10. I get 10k per year savings on 90k post-tax income over the first seven years by the following Math:leron wrote:your analysis wasn't perfect but made some sense until all of a sudden you threw out 90% expenses just so you could have the joy of saying 10% savings rate.
7k take home per month
-2k student loans
-1k other costs
= 1k savings per month
And yes, over a 7 year associate career, you will have a 7k per month take home even if you include bonuses - assuming a 50% tax AND assuming you make big law.
The mortgage as an investment is a fine argument to make if you consider real estate as a sensible long-term dollar cost averaged fixed-interest rate inflation-beating investment, heck - with superinflation all but a certainty, I'd say a 6% deal for 30 years is a fine investment, sure, whatever, get your mortgage - you're going to probably get a HELOC and update your garage just to keep up with the Joneses anyway, then there's home insurance, HOA fees, property taxes, maintenance, warranty, its just such a horrible investment compared to the S&P 500, which is a toilet investment anyway. Sure, mortgage counts I guess.