- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
What's a "normal" amount of money for a late 20s person to have in savings?
Posted on 7/26/13 at 9:13 am
Posted on 7/26/13 at 9:13 am
First, I know there is no "normal". It varies person to person based on income, debt, expenses, etc. Also I'm sure there are some calculators out there to give me a percentage of income or something similar. But I'd rather ask real people.
The only reason I got to thinking about this is because it's something that you definitely can't/don't ask people IRL. And I don't really want to ask my friends honestly, it's none of my business and it doesn't affect my life at all, I'm simply curious.
I don't make a ton of money, but I make more than I ever have before so I'm happy with that. Still, most of my friends make a good bit more than me. So when they say they don't want to go out because they're trying so save money and other things like that, it just makes me really curious as to what people consider a good amount of money to have in the bank. I have literally zero idea whatsoever if how much I have saved up is awful, normal, pretty good, or whatever. No clue.
I'm not talking about money tied up in investments, or retirement accounts, or stocks, or anything like that. I'm simply talking about money on hand in the bank. Sooo, what do yall think is a rough estimate of a good, normal amount for someone in their late 20s to have in savings?
The only reason I got to thinking about this is because it's something that you definitely can't/don't ask people IRL. And I don't really want to ask my friends honestly, it's none of my business and it doesn't affect my life at all, I'm simply curious.
I don't make a ton of money, but I make more than I ever have before so I'm happy with that. Still, most of my friends make a good bit more than me. So when they say they don't want to go out because they're trying so save money and other things like that, it just makes me really curious as to what people consider a good amount of money to have in the bank. I have literally zero idea whatsoever if how much I have saved up is awful, normal, pretty good, or whatever. No clue.
I'm not talking about money tied up in investments, or retirement accounts, or stocks, or anything like that. I'm simply talking about money on hand in the bank. Sooo, what do yall think is a rough estimate of a good, normal amount for someone in their late 20s to have in savings?
22
Posted on 7/26/13 at 9:14 am to WG_Dawg
6 months of living expenses should be sufficient
Posted on 7/26/13 at 9:15 am to WG_Dawg
3-6 months of emergency savings. Emergency savings should be the sum of your necessity fixed and variable expenses.
Any less than this, and you are being risky. Any more than this, and you are typically being overly conservative barring any planned cash expenses (mortgage/loan down payments, etc...)
Any less than this, and you are being risky. Any more than this, and you are typically being overly conservative barring any planned cash expenses (mortgage/loan down payments, etc...)
This post was edited on 7/26/13 at 9:18 am
Posted on 7/26/13 at 9:18 am to WG_Dawg
I thought I read somewhere in Money Mag that 60% of your salary was a real solid number at age 27. Sorry, no link, just what I thought I had read.
Posted on 7/26/13 at 9:21 am to WG_Dawg
Like others have said, 6 months of living expenses...
Additionally, I would hope you would have money in a retirement account of some sort?
Additionally, I would hope you would have money in a retirement account of some sort?
Posted on 7/26/13 at 9:28 am to WG_Dawg
what's normal? probably less than a month worth of living expenses
what should you have? at least 3 months worth of living expenses
what should you have? at least 3 months worth of living expenses
Posted on 7/26/13 at 9:31 am to WG_Dawg
It is better to have as low a cash balance as possible. Invest it in fairly liquid assets that return a yield of some sort. That and/or have access to a HELOC with a nice low rate that you can tap if you need to.
Having a lot of cash lying around "just in case" is not a great way to use money. It is more important to be able to get cash when you need it, which is not the same thing at all.
Having a lot of cash lying around "just in case" is not a great way to use money. It is more important to be able to get cash when you need it, which is not the same thing at all.
Posted on 7/26/13 at 9:38 am to WG_Dawg
I'm still in school and have almost 6 months of my expected salary 
Posted on 7/26/13 at 9:41 am to WG_Dawg
Are we talking about savings or net worth?
I'm 29 and am right about $100 net worth, split about 60/40 between savings and retirement. I need to do something with that 60% because it is literally just rotting away in a savings account.
I'm 29 and am right about $100 net worth, split about 60/40 between savings and retirement. I need to do something with that 60% because it is literally just rotting away in a savings account.
This post was edited on 7/26/13 at 9:45 am
Posted on 7/26/13 at 9:50 am to WG_Dawg
3 months living expenses is what I would aim for as far as what you have in your immediate savings/checking account. Depending on your circumstances that is around $5k. I think that's a pretty healthy number to aim for.
Posted on 7/26/13 at 9:52 am to WG_Dawg
I would look at goals towards retirement instead of a number. As long as you are on the path in your 20's, you are better off than most. You want to have an emergency fund setup.. Roughly 6 months of pure living expenses. Other than that, as long as retirement is on the brain and active savings are accumulating the number isn't that important because of your limited timeframe in the workforce. My 20's was an awesome time, experiencing life, travel, and friends all on my dime. Don't let a singular number bog down this time in your life.
Posted on 7/26/13 at 10:40 am to WG_Dawg
quote:
The only reason I got to thinking about this is because it's something that you definitely can't/don't ask people IRL. And I don't really want to ask my friends honestly, it's none of my business and it doesn't affect my life at all, I'm simply curious.
I really wish this was one social construct that would disappear among good friends. I understand it not being polite walking up to random folks and talking about their money, but you would think the best people to talk too would be similarly situated individuals that you are close to.
I talk about money freely (at least in a strategic sense). If my friend were to ask me point blank how much I make and how I manage it, I would tell them. Otherwise, I keep the discussion on the macro level with tips and strategies that every income earner should know.
Whomever said 60% of salary at 28 can eat a dick. I didn't start working a career job until I was 26 years old.
This post was edited on 7/26/13 at 10:41 am
Posted on 7/26/13 at 11:49 am to WG_Dawg
quote:
What's a "normal" amount of money for a late 20s person to have in savings?
A republican? $250,000
A democrat? $1,000
Posted on 7/26/13 at 12:18 pm to WG_Dawg
I keep about 5k in a checking account, roughly 6 months of savings in a very low risk bond fund, and about 70k in 401k/employee stock program/Roth IRA. I'm probably being a little risky by not having as much liquid funds. We've been splurging lately and really need to get down to saving and having cash on hand.
Posted on 7/26/13 at 2:32 pm to WG_Dawg
This thread is and will be like asking the OT for their average dick size.
Posted on 7/27/13 at 8:42 am to WG_Dawg
I keep about 5k in checking, 10k in savings at all times. I feel like that's a good amount(I'm 24), no reason to have much more that that sitting there doing nothing.
Posted on 7/27/13 at 12:10 pm to WG_Dawg
Depends on the volatility of your profession. I currently feel very secure in my employment. Combined with the fact that I don't make a ton of money as a young professional, I only have about two months living expenses "cash" as I'd prefer to at least attempt to max out my Roth, and I'm not making enough to do both and enjoy the things I enjoy doing. Even if I made significantly more, I don't think I would go much above three months cash, as it is far too easy to put sudden expenses on a credit card to give myself time to pull contributions out of my Roth penalty free or liquidate some individual equity holdings, as another poster has suggested.
Getting sub-1% on a big chunk of change strikes me as unwise when there are so many other options. Put another way, I would be more concerned with how much capital you can have access to within, say, 15 days than what you can have access to in 15 minutes. But, that's just my opinion.
Getting sub-1% on a big chunk of change strikes me as unwise when there are so many other options. Put another way, I would be more concerned with how much capital you can have access to within, say, 15 days than what you can have access to in 15 minutes. But, that's just my opinion.
This post was edited on 7/27/13 at 12:11 pm
Posted on 7/27/13 at 1:49 pm to WG_Dawg
I keep around 5K in savings and 2K in checking.
If a lot of money is in one of these two accounts, my wife, god bless her, thinks of something we just have to have.
I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours. I have 2.5 years salary in 401k's and IRA's.
If a lot of money is in one of these two accounts, my wife, god bless her, thinks of something we just have to have.
I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours. I have 2.5 years salary in 401k's and IRA's.
Posted on 7/27/13 at 4:32 pm to WG_Dawg
I keep 3x monthly expenses in my "operating account". This is the account I use to pay all bills.
I keep 6x monthly expenses in my "savings account". I use this as an emergency fund and to fund my Roth IRA and my HSA as early in the contribution year as possible.
I keep 0.5x (book) annual salary in my "brokerage account". I use this to aim for alpha since it's a built in function in the male brain to try to do so. I can also use this as an emergency fund or to put a down payment on a home. Renting makes sense for my current situation. I'm debating whether to try to get this account to a 1x (book) salary or to start purchasing investment real estate.
401(k) gets maxed out. I probably save too much and should be aiming for a higher return on life (thanks to whoever coined that) considering my age. But then again, I sure as shite won't be able to do like I'm doing now once I add a house, a wife, and kids.
I keep 6x monthly expenses in my "savings account". I use this as an emergency fund and to fund my Roth IRA and my HSA as early in the contribution year as possible.
I keep 0.5x (book) annual salary in my "brokerage account". I use this to aim for alpha since it's a built in function in the male brain to try to do so. I can also use this as an emergency fund or to put a down payment on a home. Renting makes sense for my current situation. I'm debating whether to try to get this account to a 1x (book) salary or to start purchasing investment real estate.
401(k) gets maxed out. I probably save too much and should be aiming for a higher return on life (thanks to whoever coined that) considering my age. But then again, I sure as shite won't be able to do like I'm doing now once I add a house, a wife, and kids.
Posted on 7/27/13 at 6:18 pm to WG_Dawg
Normal is probably one month living expense
Remember....people lie on the Internet
Remember....people lie on the Internet
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News