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re: How much money should you have in the bank by age 30.
Posted on 9/22/17 at 12:01 am to ScopeCreep
Posted on 9/22/17 at 12:01 am to ScopeCreep
I agree wholeheartedly. I've been in a strange position where I needed cash to pay for school tuition every few months and I'll graduate in May debt free.
From the time I have graduated from undergrad, I've saved at least $1,000 a month in free cash flow after a minimum 401k contribution to hit my employer match. As my income has risen, my cost of living has risen much slower (but I do spend more than at 22).
Most people have an income problem in their twenties and large debt problems just emphasize the income problem. To be fair, the marginal benefit of each raise in your early 20s is amazing. Going from $30k to $35k a year is a big deal.
My recommendation is to work a place for a few years, gain some valuable skills, and try to get one promotion. Then, jump ship and go to a new company at ideally a higher title. Generally, this approach yields an additional 15%+ base salary improvement which does huge things for your SOL. Changing companies is typically how to maximize salary growth early in your career.
To the OP, most have $0 and have a lot of debt in their name.
From the time I have graduated from undergrad, I've saved at least $1,000 a month in free cash flow after a minimum 401k contribution to hit my employer match. As my income has risen, my cost of living has risen much slower (but I do spend more than at 22).
Most people have an income problem in their twenties and large debt problems just emphasize the income problem. To be fair, the marginal benefit of each raise in your early 20s is amazing. Going from $30k to $35k a year is a big deal.
My recommendation is to work a place for a few years, gain some valuable skills, and try to get one promotion. Then, jump ship and go to a new company at ideally a higher title. Generally, this approach yields an additional 15%+ base salary improvement which does huge things for your SOL. Changing companies is typically how to maximize salary growth early in your career.
To the OP, most have $0 and have a lot of debt in their name.
This post was edited on 9/22/17 at 12:03 am
1
Posted on 9/22/17 at 12:14 am to lynxcat
By the time I'm 30, I'm hoping to have quite a bit. I just started my first real post college job at 25 making $17/hour. I'm working hard so hopefully that will go up. I don't have a ton of student debt ($20K) so I'm hoping to pay that off quickly. Not to mention the money I'm putting aside in different imvestments. Barring a disaster, I should be okay. Not to mention my s/o is on track to be a CPA.
Posted on 9/22/17 at 12:20 am to Displaced
quote:
Automatic 6% + 100% match up to 6%
So 12%
Your conpany's matching program makes me so horny.
Posted on 9/22/17 at 12:26 am to FootballNostradamus
At 30 I had a mortgage payment, 3 vehicles paid for/ but insurance, boat, 2 four wheelers, 3 big screens, 2 refrigerators/ 1 that was stocked with beer on a measly single income. Pretty sure my bank accounts might've had 3 bucks at the end of the month after bills and meals.
This post was edited on 9/22/17 at 12:27 am
Posted on 9/22/17 at 12:58 am to lsuwontonwrap
quote:
70% of Americans don't have $1000 of expendable cash, in case of an emergency
That is just mind boggling
Posted on 9/22/17 at 1:28 am to The Mick
quote:
None
this
Posted on 9/22/17 at 1:50 am to The Mick
quote:
If you're not maxing it out when you're young and can afford to that's just plain dumb. The company match is the best investment you'll ever see your entire life. Once the house,kids,life, etc starts piling up, most people cant afford to stash 15% of their income away in 401k so doing so early on makes a huge difference.
I am 24, I'm putting in 10% right now, but I get a 2% pay raise yearly and I put that extra 2% in every year. So I will be at 16% in 3 years.
Posted on 9/22/17 at 8:05 am to UGADawg912
Make sure you have an emergency account of available cash as well. 401k is great but there are penalties to withdraw and the marginal tax benefit goes down as you offset / lower your AGI.
Posted on 9/22/17 at 8:07 am to UGADawg912
quote:
I am 24, I'm putting in 10% right now, but I get a 2% pay raise yearly and I put that extra 2% in every year.
You say that, but you won't.
Posted on 9/22/17 at 8:08 am to lynxcat
I always took you for a guy in his 40s or 50s
Posted on 9/22/17 at 8:12 am to RLDSC FAN
quote:
That is just mind boggling
Why?
This post was edited on 9/22/17 at 8:12 am
Posted on 9/22/17 at 8:15 am to The Dudes Rug
Because I'd wager that 95% of that 70% has a new iPhone, 40+ inch TV, an Xbox/ps, etc...
Posted on 9/22/17 at 8:16 am to GermantownTiger
hard cash probably had close to 50k in the bank. But I also did not have kids until mid 30's which made saving money during those growing years as a professional much easier to save and advance my career vs those with kids.
"70% of Americans don't have $1000 of expendable cash, in case of an emergency
That is just mind boggling"
I know I live in a bubble but it seems like this has to be somewhat skewed.
US citizens / bank accounts with 1k = %
Certainly there are cash under mattress, under 21, and others to take into account. Even at 50% its still pretty alarming.
"70% of Americans don't have $1000 of expendable cash, in case of an emergency
That is just mind boggling"
I know I live in a bubble but it seems like this has to be somewhat skewed.
US citizens / bank accounts with 1k = %
Certainly there are cash under mattress, under 21, and others to take into account. Even at 50% its still pretty alarming.
This post was edited on 9/22/17 at 8:27 am
Posted on 9/22/17 at 8:16 am to ScopeCreep
quote:
Anybody that says you need 3+ months in expenses is stupid and/or lazy. Make your money work (401k, paying down debt, investing, etc). Don't sit on 60k in cash.
3-6 months of expenses is sound financial advice. More specifically, the ability to get to 3-6 months of expenses without borrowing or paying a penalty is important.
Otherwise, I agree about investments.
Posted on 9/22/17 at 8:17 am to Displaced
quote:
You say that, but you won't.
Why not? It's not hard. I did that and started maxing out my 401k at 28.
Posted on 9/22/17 at 8:18 am to GermantownTiger
Between my brokerage and bank account, enough not to worry.
In my checking account though, I'm usually in danger of overdrafting by the time payday comes around because I only keep what money I need in there to cover my expenses. Everything else in the brokerage.
In my checking account though, I'm usually in danger of overdrafting by the time payday comes around because I only keep what money I need in there to cover my expenses. Everything else in the brokerage.
Posted on 9/22/17 at 8:20 am to HeyHeyHogsAllTheWay
quote:
My 3 year old
dude aren't you like 55
Posted on 9/22/17 at 8:20 am to southernelite
Good Lord that was a quick downvote.
Haters gonna hate.
Haters gonna hate.
Posted on 9/22/17 at 8:21 am to GermantownTiger
-$170k if you educated all the way
Posted on 9/22/17 at 8:27 am to UGADawg912
quote:Smart
I am 24, I'm putting in 10% right now, but I get a 2% pay raise yearly and I put that extra 2% in every year. So I will be at 16% in 3 years.
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