- 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
re: What is the standard method for figuring out how much to keep in savings?
Posted on 5/10/13 at 8:48 am to WG_Dawg
Posted on 5/10/13 at 8:48 am to WG_Dawg
3-6 months typically and some will suggest up to a year.
In your case though, if shite hits the fan with your job, you have Mom and Pop to feed you, shelter you, and you have no debt. So, in theory, you really do not need anything in way of an emergency fund. I know in your mind it may stink to move back home, but you have the perfect situation to sock away as much money as possible now. Fully fund a Roth IRA, max out your 401k, save for a house or whatever your future goals are.
I am envious of your position.
In your case though, if shite hits the fan with your job, you have Mom and Pop to feed you, shelter you, and you have no debt. So, in theory, you really do not need anything in way of an emergency fund. I know in your mind it may stink to move back home, but you have the perfect situation to sock away as much money as possible now. Fully fund a Roth IRA, max out your 401k, save for a house or whatever your future goals are.
I am envious of your position.
2
Posted on 5/10/13 at 8:55 am to OnTheBrink
quote:
OnTheBrink
Yeah I was going to use the next 6 months or so living at home to just save a bunch of money then look at getting a house I guess. I just feel like I'm doing something wrong putting a bunch into savings and it just sitting there. I just assumed I should be putting it somewhere else. But I guess since in the next 6-12 months I'll likely be making a major purchase it's not that bad.
Posted on 5/10/13 at 12:40 pm to OnTheBrink
quote:
3-6 months typically and some will suggest up to a year.
How liquid does this need to be?
Those of you keeping a year's worth of cash in a savings account earning .5% could be missing out on significant gains.
My advice to the OP: find out what your company matches to your 401K. If they match 8%, put in at least 8%...more if you can afford it. Along with that, you'll want to max out your Roth contributions. For 2013, the max you can contribute to a Roth IRA is $5500.
With the Roth, you can take out your contributions tax free in dire emergencies, but that should be avoided. Your gains can't be taken out without penalty until retirement age.
This post was edited on 5/10/13 at 1:00 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News