My Money, My Choices - Level 3, Activity 1

This activity takes us through calculating our personal savings rate.  Gail tells us that there is basically two different types of savings.

1. Long Term - Retirement
2. Planned Spending - Emergencies, Kids School Funds, Vacation

The personal savings rate, is the rate we're saving for number one...for retirement.

 Here is the break down for Jordan and I - combined our savings rate is 14.83% which is great for being late 20s/ early 30s - but there's a pretty big disparity between Jordan and myself.

Now...women live longer.  That's a fact.  So I'm comfortable that we're saving more for me; and we'll probably move the shares to Jordan's name when I retire from my company and they need to be put in a tax/shelter of some kind; however - I'm not sure that 10.5% is appropriate.

A part of the decision for the RRSP contributions were based on our expectation that Jordan's salary would have some significant variability, and it was what we could afford based on his baes ($30K); but now that his salary guarantee won't be going down, we can look at this again.  If we increase Jordan's retirement savings, by just $100/month - that brings him up to 12.50% and our combined total to 16.21%...not to shabby.

What do you think?

Should we increase Jordan's savings by $100, is that enough?

Check out the My Money, My Choices program by clicking here.