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re: How much should a person have in their savings by 25?
Posted on 5/18/15 at 9:07 pm to J Murdah
Posted on 5/18/15 at 9:07 pm to J Murdah
Like many others have said it's not all about how much you have saved, but how much debt you have amassed.
Compound interest works in both ways but always favors the lender over the saver.
If possible, spend at a rate that you can pay off your credit debt in full each month.
If you are single, save as much as possible pre-tax and at least what your employer matches in a 401k or 403b, etc.
After all that, still try to save enough to steadily build up about 6 months income in emergency reserve.
Compound interest works in both ways but always favors the lender over the saver.
If possible, spend at a rate that you can pay off your credit debt in full each month.
If you are single, save as much as possible pre-tax and at least what your employer matches in a 401k or 403b, etc.
After all that, still try to save enough to steadily build up about 6 months income in emergency reserve.
0
Posted on 5/18/15 at 9:12 pm to Jtigers99
Age times salary divided by 40.
25 years old making $40k? $25k.
25 years old making $40k? $25k.
Posted on 5/18/15 at 9:28 pm to anc
quote:
Age times salary divided by 40. 25 years old making $40k? $25k.
Posted on 5/18/15 at 9:34 pm to Btrtigerfan
quote:
If you have money making 1.3% at in the savings
No savings is earning this high, is it?
Posted on 5/18/15 at 9:48 pm to East Coast Band
quote:Of course not. That's a CD rate.
No savings is earning this high, is it?
Well that was a fun read...3 pages of OT responses.
Posted on 5/18/15 at 10:39 pm to LSUfan4444
quote:
So (on avg) half of their yearly salary a couple years out of college?
I made $34,000 my first 2 years out of school. I had $20,000 saved up by the end of year 2. It wasn't that hard.
Posted on 5/18/15 at 10:43 pm to Jtigers99
Everyone is different. There is no correct answer
Posted on 5/19/15 at 12:51 am to lynxcat
quote:
$0 in savings would stress me out. Go into work one day and get let go and you are screwed.
Need at least a few grand in case emergencies happen.
Once you are out in the real world, even if you have debt, should always have a floor of liquidity to cover you for a couple of months.
Posted on 5/19/15 at 6:04 am to bawbarn
If you were fully supporting yourself there is no way you could have lived on $7000/yr
Posted on 5/19/15 at 6:53 am to jimbeam
$800 out of my monthly paycheck for 24 months? I had cheap rent and no car debt since I was still using my car from high school.
eta: I re-read my previous post. I worded that badly, $34,000 per year. My bad.
eta: I re-read my previous post. I worded that badly, $34,000 per year. My bad.
This post was edited on 5/19/15 at 6:56 am
Posted on 5/19/15 at 7:24 am to Jtigers99
at 25, I was making about $45k, single, living with a roommate in a townhouse still driving my truck from HS with no car note.
I had about $30k in savings since I had very low living expenses (<$800/month) and I had no college loans. Unfortunately I was ignorant about roth IRAs at the time, so I just had this money in a regular savings account.
Of course, by 28, 90% of that savings was gone after buying a new truck, getting married, honeymoon, and buying a house
I had about $30k in savings since I had very low living expenses (<$800/month) and I had no college loans. Unfortunately I was ignorant about roth IRAs at the time, so I just had this money in a regular savings account.
Of course, by 28, 90% of that savings was gone after buying a new truck, getting married, honeymoon, and buying a house
Posted on 5/19/15 at 7:27 am to mattz1122
I think it was 6 figures by 30 you need to reevaluate your life.
I don't think that is an absurd goal.
I don't think that is an absurd goal.
Posted on 5/19/15 at 7:35 am to TheHiddenFlask
quote:
I don't think that is an absurd goal.
right
its not an absurd goal
having that as a goal is one thing, saying that if you are not making $100k by 30 you have failed at life is another
Posted on 5/19/15 at 7:45 am to Salmon
you should have ever how much money is the max that your employer will match in your 401k from the first day you can contribute.
Posted on 5/19/15 at 7:52 am to Salmon
Are we talking 100k savings, or 100k net worth? I'll be the first to admit I got a sweet deal financially. No college debt, living for free until I purchsed my house at 26. Also started out with significant savings due to an accident I was in during college. At 25, I had a lot of cash. After a ring, and a house down payment, not so much cash . If you take my retirement, investments, home equity, and savings, then i surpass the 100k by 30 rule. But I certainly dont have that much purely in savings and accesible investments. And I had a hell of a start compared to most.
. If you take my retirement, investments, home equity, and savings, then i surpass the 100k by 30 rule. But I certainly dont have that much purely in savings and accesible investments. And I had a hell of a start compared to most. Posted on 5/19/15 at 8:29 am to KG6
I believe 100k salary by 30 is what they're referring to.
Posted on 5/19/15 at 8:38 am to Epic Cajun
Age: 25
New Car: 2015 Camry
College Loans: <$10,000
Housing: Apartment (split rent)
Marital Status: Engaged
I save about 17.5-20k/year (w/o employer match ~15k) on salary of 60-70k/year
It wasn't easy at first to adjust but I have about $300 above my "bare bones" budget to spend.
Here are the major things I had to learn that make it easy now
-When doing things with friends, stick to budget + drink before not during night out/don't buy people drinks
-Get the car you need not the car you want (Found out I love my "lower level" car since stock tech is legit now)
-Learn what you can wait to purchase. I save for 2-3 months before buying anything. It makes it more exciting when I buy it and I often resist "impulse" purchases
-I go to the store with a list and only buy what's on the list
New Car: 2015 Camry
College Loans: <$10,000
Housing: Apartment (split rent)
Marital Status: Engaged
I save about 17.5-20k/year (w/o employer match ~15k) on salary of 60-70k/year
It wasn't easy at first to adjust but I have about $300 above my "bare bones" budget to spend.
Here are the major things I had to learn that make it easy now
-When doing things with friends, stick to budget + drink before not during night out/don't buy people drinks
-Get the car you need not the car you want (Found out I love my "lower level" car since stock tech is legit now)
-Learn what you can wait to purchase. I save for 2-3 months before buying anything. It makes it more exciting when I buy it and I often resist "impulse" purchases
-I go to the store with a list and only buy what's on the list
This post was edited on 5/19/15 at 8:39 am
Posted on 5/19/15 at 9:04 am to 911Moto
quote:
0. You should be enjoying your life at age 25. And 35. And 45. If you're already stockpiling money, you're either doing it wrong, or you have a crappy job - in which case you're also doing it wrong.
good ole 911moto droppping knowledge on us
Posted on 5/19/15 at 9:57 am to yellowfin
quote:
good ole 911moto droppping knowledge on us
Didn't he have some kind of strange life philosophy about living it up because you might die tomorrow?
Posted on 5/19/15 at 10:04 am to Epic Cajun
quote:
I believe 100k salary by 30 is what they're referring to.
Alright, that makes sense
. I was thinking I was pretty financially responsible, then that made me second guess my spending habits. I've definitely fallen off the wagon lately and need to reel it in, but still don't plan to have that much laying around in investments and savings for a few years. 
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