What's a "normal" amount of money for a late 20s person to have in savings? | Page 3 | TigerDroppings.com

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Dead Mike
LSU Fan
Cell Block 4
Member since Mar 2010
1801 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:


The closest Schwab to me is about 40 minutes away. Would setting this up for the first time be something I can do over the phone with someone? Again, I know I can probably do it online but I'm sure I'll have a bunch of questions and would like to speak to a person while I do it.



Honestly, you're better off doing the research yourself than relying on a salesman from Schwab or whatever. It's not so complex that you can't get the hang of it yourself, and the personal understanding gained is worth the time and effort.

If you have any questions, then you should post them here or search them here. Are you concerned about the rules governing IRAs, or are you concerned about making sensible fund selections for the account? I should also add that I use Vanguard, and they were very helpful when I called to do some unexpected maintenance on my account, but it could've also helped that I did the research before hand to give myself an idea of what's possible and what makes sense.






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LSU0358
LSU Fan
Member since Jan 2005
5293 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


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.






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14194 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


Depends on income and how long you've been working. My answer is as much as possible. My wife finished school first in 1999. She made 75k her first yr and we had one child(age 24-me 25-her). We tried to keep our expensed the same as before. We saved about 15-20k that yr. I started the next and our combined income was about 100k. We had to move and bout a house but still saved about 10k. It escalated from there. Had over 100k saved before age 30. In addition to 50k I had saved working and investing since age 12. Also had zero school debt despite me going to med school and her to pharmacy school. But I BUSTED ASSS!!! To pay as we went and we lived like paupers while in school.





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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29825 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

I keep around 5K in savings and 2K in checking.


This






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The Easter Bunny
Georgia Tech Fan
Minneapolis, MN
Member since Jan 2005
42328 posts
 Online 

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

I have no idea why people use savings accounts anymore. There isn't anything they do that you can't do better some other way.


What type of account would you use for saving for a down payment on a house?






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WG_Dawg
Arkansas Fan
Atlanta
Member since Jun 2004
43194 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours


This is precisely the type of thing I want to start. I have retirement accounts through work, but I want something other than a savings account that I can throw money into since it's just sitting idle in a savings account. What kind of investment account are you talking about? Or should I not worry about stuff like that at this point, and start with the basics like a Roth IRA first?






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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
6259 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

What type of account would you use for saving for a down payment on a house?


Depends on what kind of time table I'm looking at. If we're talking between one and three years, I'd probably play it safe with a CD. More than three years and I'd probably pour it into either an index fund or a very conservative bond/equity basket fund.






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Hand
Army Fan
far side of the moon
Member since Dec 2007
2001 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


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.






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
72248 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


Normal is probably one month living expense

Remember....people lie on the Internet






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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41097 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

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.


This.

I've only discussed it with one of my friends, and it was while we were both buzzing in the drunken post game glow of an LSU victory while listening to the radio call in show.

The fact that we are in our mid twenties and have been good friends for over a decade helped

Oh, and the fact that his wife works AND he is a doctor so their finances are the opposite of embarrassing prob helped as well



This post was edited on 7/27 at 11:33 pm


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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41097 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

Normal is probably one month living expense


While true, strikes me as sad.

I've been working in earnest for only 5 months but I have a couple of month's living expenses between my brokerage and my Roth.

I won't feel comfortable financially until I can throw in at least 20k within a week.

An arbitrary goal, but it's where I stand.



This post was edited on 7/27 at 11:40 pm


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30341 posts
 Online 

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

The closest Schwab to me is about 40 minutes away. Would setting this up for the first time be something I can do over the phone with someone? Again, I know I can probably do it online but I'm sure I'll have a bunch of questions and would like to speak to a person while I do it.


Yes, you can do it online, in fact that's what I did. I haven't visited a Schwab branch in years.

I understand that they have consultations available online but have no idea how it works, basically all I can tell you here is that their customer service is always ranked very highly in the industry and my experience has been consistent with that.

If you want to chat with someone, it's probably worth the 40 minutes IMHO.






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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
21245 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

If we're talking between one and three years, I'd probably play it safe with a CD.
Bad idea. You can get about the same rates in a savings account and be able to take it out any time.






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LSU0358
LSU Fan
Member since Jan 2005
5293 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

What kind of investment account are you talking about?


Individual stocks, futures, etc. I'm in no way recommending you trade individual stocks and especially not futures if you are new to investing/trading.






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St Augustine
New Orleans Saints Fan
The Pauper of the Surf
Member since Mar 2006
42510 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


32 and I have a little over 15k in savings.

I didn't finish grad school until 26 and my first year of work didn't pay a whole hell of a lot compared to my expenses. At 27 we started paying off my 92k+ of student lones and I finished paying it off at around 29 and a half. We then bought a cheap house and had a son in my early 30s and we have only my income. My situation is a bit different in that my profession is in high demand and I'll never really be out of work.

As long as you are out of dept in your 20s I wouldn't sweat it. Have a couple months emergency fund and enjoy this time in your life.






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14194 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

As long as you are out of dept in your 20s I wouldn't sweat it. Have a couple months emergency fund and enjoy this time in your life.

Good way to end up in a bind. We have always saved at least 25% of our pre-tax income.

"Normal" is zero for most people your age.






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ell_13
USA Fan
Alex Box
Member since Apr 2013
25756 posts
 Online 

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

We have always saved at least 25% of our pre-tax income.


And kept it in savings? Just growing the savings account? That's a good way for most people to have to work into their 70's.






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14194 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

And kept it in savings? Just growing the savings account? That's a good way for most people to have to work into their 70's.

No. Saved and invested. I'm 39 and will be able to quit entirely by age 45 if I choose.

We now save closer to 50% for the record. No sense in spending money on shite you don't need just because you can. Not that we don't splurge and live well.






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ell_13
USA Fan
Alex Box
Member since Apr 2013
25756 posts
 Online 

re: What's a "normal" amount of money for a late 20s person to have in savings?


quote:

Saved and invested.

Okay. Makes much more sense.






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jjbodean1970
LSU Fan
Morgantown, WV
Member since Mar 2006
6488 posts

re: What's a "normal" amount of money for a late 20s person to have in savings?


reading this thread it sounds like the wife and i dont have enough saved at this point, and we always felt like we were ahead.

we will both be 43 this year and between the 2 of us in savings, home equity, retirement plans, and 529 accounts we are sitting combined at about 1.4M net worth, or only 700k each, (the actual split is about 66/34 in favor of the wife). looks like we have some work to do.






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