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Posted: 4/30/2017 10:50:44 AM EDT
[#1]
Good on you! You're saving far more than the average person.
How young are you? |
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Posted: 4/30/2017 10:52:50 AM EDT
[#2]
I think your doing great, but make sure not to miss out on youth.
I'm at 10% a yr 401k, pension thru company that I paid for during first 10yrs, and if SOS exists when I retire. |
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Posted: 4/30/2017 10:54:52 AM EDT
[#3]
Keep it up if that leaves enough to handle life. Do not tie up money for unusual, surprise, or emergency expenses in a 401k or other device that imposes withdrawal penalties.
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Posted: 4/30/2017 10:59:12 AM EDT
[#4]
You will thank yourself later.
Don't think of that money as being gone. Think of it as being put to work for you. |
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Posted: 4/30/2017 11:04:31 AM EDT
[#5]
Was talking about this with a young apprentice and was trying to encourage him to save more now. Conversation was interrupted to perform service at a run down mobile home for an old man living off of social security, who was living within his means, but that which would be considered living in squalor to many of us.
So we perform the service and leave. My apprentice then picks back up on our prior conversation by asking if it'll really make any difference to his future by saving and investing as much as I had suggested... To which my response was: When you're about 65 do you want to live in the type of financial conditions that we just experienced at that last call, or do you want a new Mercedes and to help your grandkids pay for college? He smiled a big grin, and it was at that point he understood. |
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Posted: 4/30/2017 11:06:32 AM EDT
[#6]
Time is your best friend when it comes to investments, so early money is the best money. Keep on keeping on as long as it is not pinching you too hard month to month.
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Posted: 4/30/2017 11:06:56 AM EDT
[#7]
When you approach retirement where do you want to be on the chart?
Just make sure funds to take care of emergencies, periods of unemployment, etc., aren't tied up in your retirement pot. |
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Posted: 4/30/2017 11:07:42 AM EDT
[#8]
Great job! Not many have the self-discipline to save and invest like you.
Quote HistoryQuoted:
Keep it up if that leaves enough to handle life. Do not tie up money for unusual, surprise, or emergency expenses in a 401k or other device that imposes withdrawal penalties. |
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Posted: 4/30/2017 11:14:42 AM EDT
[#9]
Quote HistoryQuoted:
Great job! Not many have the self-discipline to save and invest like you. This. A good rule of thumb is to keep between three and six months of income liquid in savings for emergencies. |
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Posted: 4/30/2017 11:15:32 AM EDT
[#10]
It will especially the younger you are. If you save and invest several hundred dollars a month from mid 20s until 60 you will be a millionaire.
My wife and I Put 25% of our income in a 401k and try to keep 6 mo worth of savings set aside in a checking account while saving up to pay cash for big expenses like cars , household repairs/improvements and vacations. I know it feels weird but you are doing it the right way. Everyone else lives pay check to pay check and uses debt to finance instant gratification. But they will have to retire on social security and reversed mortgage their home to barely survive in retirement but you will be able to actually be free and enjoy your retirement. |
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Posted: 4/30/2017 11:34:56 AM EDT
[#11]
save until you're poor.... i haven't taken a raise in years, it all immediately goes to investments, I haven't allowed my life-style to drift (too much) as my income has increased. Still live a great life, but if you never see it, you won't miss it. I'll be glad I did in another 20 years
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Posted: 4/30/2017 11:35:45 AM EDT
[#12]
Not a mistake... Keep it up. It sucks now. But in twenty years, when others are still broke and you have a seven figure balance, it's very very good. It's what I did. Zero regrets. None
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Posted: 4/30/2017 11:47:33 AM EDT
[#13]
im gonna be the odd man out and say its all good until you work hard your whole life and save all you can to eventually live a easier life then find out you have a terminal illness and have 1 yr to live.its happened to 2 people ive known over the years...life is backwards really,it seems you should live your life while young and work when your older..as long as your obligations are satified..tommorow is not promised...but i am not a smart man only a keen observer
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Posted: 4/30/2017 11:50:09 AM EDT
[#14]
Saving for investing later is good. It's one of the basic tenets of The Richest Man in Babylon.
Modernly though, what is the difference between money and currency? Look up MF Global and PFG Best and see what went wrong there and why. |
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Posted: 4/30/2017 12:01:21 PM EDT
[#15]
In the "Or More" Category..
Took me 25 years to get there 
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Posted: 4/30/2017 12:27:39 PM EDT
[#16]
It adds up, already have an extra 25 grand put away on my 401k after just a few years. With compounding and leaving it alone, I hope to have a few hundred grand by the time I retire. Just watch out for fees. 2 percent might seem insignificant, but 2 percent of 100k is two grand that could be compounding. Shop around. My current fund is .5 percent/year in fees.
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Posted: 4/30/2017 12:29:48 PM EDT
[#17]
you can never save enough or contribute to retirement enough.
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Posted: 4/30/2017 12:36:19 PM EDT
[#18]
The age old question, how much is enough.
The problem everyone runs into is how do you fight inflation. Sure everyone in GD will say but this index fund or that etf. But what do you do if you would have retired in 2000 or 2007. See how that sucks. It's ok markowitz heals all wounds with enough time, just enjoy your cat food supper while waiting. |
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Posted: 4/30/2017 12:46:31 PM EDT
[#19]
Quoted:
Anyway, just wonder if my sacrificing today is really going to help much in several years. Its a great idea, BUT make sure you don't tie up all your money in something that's not very liquid or has huge penalties for withdraw |
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Posted: 4/30/2017 2:10:51 PM EDT
[#20]
Consumption today versus "easy street" later in life is a personal choice but:
1. Time value of money and compounding: one can never start too early nor save "too much" (as long as other basic needs are being met). 2. One can always save early in life and then change one's mind and do whatever with the $; the reverse is not true: if one waits too long to start saving there just isn't enough time (nor the ability due to contribution limits) to get caught up. I managed to build a sizable (even by ARCOM standards!) portfolio on relatively meager military pay simply by saving as much as I could, as early as I could. Example: don't ask me why but when they started IRAs in 1974, I started putting my lawn mowing/landscaping $ into one. I left $10K or so alone in that account (S&P500 never touched it) and that alone is worth just shy of ½ a mil (thanks Trump Bump). |
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Posted: 4/30/2017 2:18:29 PM EDT
[#21]
13% 401K, maxed out on Roth IRA and 529 savings.
Yeah, I can't afford to eat out and I drive a $1500 car. Yet still money left to buy guns. |
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Posted: 4/30/2017 2:23:05 PM EDT
[#22]
Keep it up, my wife and me did the same thing, put 2 kids through college with no student loans, both retired at 58, and enjoying every minute of it
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Posted: 4/30/2017 2:26:21 PM EDT
[#23]
Quote HistoryQuoted:
When you approach retirement where do you want to be on the chart? http://www.gannett-cdn.com/-mm-/3ea920ccaf2126137b77490513b1fc618287ed51/c=0-3-580-439&r=x408&c=540x405/local/-/media/2016/05/02/USATODAY/USATODAY/635977984347524047-MF-graph-article-2.png Just make sure funds to take care of emergencies, periods of unemployment, etc., aren't tied up in your retirement pot. One thing you have to do though is NEVER touch your retirement funds for ANYTHING short of death or truly dying. Not for your parents, not for your kids [education and the like] not for your best friends sob story, it is off limits for all the above. The second you touch it, you are screwed financially tax wise and it no longer becomes ''untouchable'' in your mind. |
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Posted: 4/30/2017 2:31:57 PM EDT
[#24]
been doing 15% for years. got one more kid to get thru college then i can bump that number up.
i live quite a frugal life and i prob look like a homeless person. don't care. it's nice having money put away and my daughters never go without. most of my stuff is older (cars, stereo, snowmobiles, etc). i hardly ever buy new stuff. i say keep paying yourself. |
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Posted: 4/30/2017 2:32:31 PM EDT
[#25]
Cool humblebrag OP. I'd say you're overdoing and should quit now.
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Posted: 4/30/2017 2:33:19 PM EDT
[#26]
No, the .gov will need your money in the years to come. Good luck with your treasury bill purchases.
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Posted: 4/30/2017 2:40:23 PM EDT
[#27]
OP I'm in the same boat. It's hard to keep saving and thinking about the future when all your friends have new cars and you are still driving the same 26 year old vehicle.
Just keep telling yourself when you are hunting and fishing everyday at 50 and they are swimming in debt it was all worth it. |
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Posted: 4/30/2017 2:52:02 PM EDT
[#28]
As long as your savings aren't in a normal account getting 0% interest, you are doing a GREAT thing.
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Posted: 4/30/2017 2:59:18 PM EDT
[#29]
Quote HistoryQuoted:
The age old question, how much is enough. The problem everyone runs into is how do you fight inflation. Sure everyone in GD will say but this index fund or that etf. But what do you do if you would have retired in 2000 or 2007. See how that sucks. It's ok markowitz heals all wounds with enough time, just enjoy your cat food supper while waiting. |
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Posted: 4/30/2017 2:59:22 PM EDT
[#30]
Quote HistoryQuoted:
When you approach retirement where do you want to be on the chart? http://www.gannett-cdn.com/-mm-/3ea920ccaf2126137b77490513b1fc618287ed51/c=0-3-580-439&r=x408&c=540x405/local/-/media/2016/05/02/USATODAY/USATODAY/635977984347524047-MF-graph-article-2.png Just make sure funds to take care of emergencies, periods of unemployment, etc., aren't tied up in your retirement pot. 
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Posted: 4/30/2017 3:00:59 PM EDT
[#31]
Savings account? The bank is using your money to make money in return you get beans. Is whatever % they're offering even enough to hedge against inflation?
Savings accounts haven't been viable for a long time now IMHO. |
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Posted: 4/30/2017 3:02:52 PM EDT
[#32]
Quoted:
Only gross about $50K a year. In the past, I've always tried to put $100 - $400 a week in savings, and minimum into a 401K. A month or so ago, I started putting 20% into the 401K, and I still try and put $100 - $200 in the bank per week depending on how much I have due in bills. I still have day to day spending money of course. Anyway, just wonder if my sacrificing today is really going to help much in several years. There's quite a few articles out there that break down savings rates and retirement timelines. For example, saving 50% of your pay, will allow you to retire in 17 years with a 4 % withdraw rate. Money moustache blog has an article that breaks down savings percentages vs timelines, check it out. |
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Posted: 4/30/2017 3:06:06 PM EDT
[#33]
You're doing the right thing. The truth is, you should have fun, but live below your means if you intend to enjoy freedom later in life. My wife and I are high wage earners with professional careers (top 2 percent of the national average in earnings) and have made a conscious effort to max out retirements funds and to invest in the market to the extent of our comfort level. Ilunlole our contemporaries, we live in an older ranch-style home on a 20 year mortgage (accelerated to 18.5 years) with monthly payments of less than a nice 2-bedroom apartment in our urban area. Our biggest expense is the kids' private school, which is where our vacation money currently goes. Back to topic - compound earnings on your saving efforts will pay you back in spades. Remember, it's a marathon, not a sprint. If you feel you need to have something tangible to invest in, consider land or precious metals but with the knowledge that market forces are largely out of your control.
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Posted: 4/30/2017 3:09:15 PM EDT
[#34]
It's all fine and dandy until the government decides they are going to rape the retirement funds to ensure everything is fair.
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Posted: 4/30/2017 3:11:44 PM EDT
[#35]
FWIW, few people understand what a mid life divorce does to their retirement unless it happens to them.
No lube and beans and rice unless you get real lucky or are in a high enough income percentile that it won't affect you much. |
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Posted: 4/30/2017 3:22:06 PM EDT
[#36]
Quote HistoryQuoted:
Keep it up, my wife and me did the same thing, put 2 kids through college with no student loans, both retired at 58, and enjoying every minute of it |
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Posted: 4/30/2017 3:25:38 PM EDT
[#37]
Quoted:
Only gross about $50K a year. In the past, I've always tried to put $100 - $400 a week in savings, and minimum into a 401K. A month or so ago, I started putting 20% into the 401K, and I still try and put $100 - $200 in the bank per week depending on how much I have due in bills. I still have day to day spending money of course. Anyway, just wonder if my sacrificing today is really going to help much in several years. yes it will help, but make sure to get yourself something once a year. Either a nice vacation or a nice toy (whatever you're interested in). Working hard and making money isn't worth it if you don't spend it on yourself every once in a while |
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Posted: 4/30/2017 3:30:43 PM EDT
[#38]
How old are you?
I have heard Clark Howard say that if you put $2000 per year in the market for 6 years starting in your early 20s it grows to a million at 65 without any further contribution. Assuming past stock market performance continues. |
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Posted: 4/30/2017 3:32:11 PM EDT
[#39]
I find it better to over-save and have the option to buy what I want, when I want than to spend it now and try and save later.
If you want to take a vacation, withdraw some from your savings. To me it's better than taking a vacation right away and trying to save after. |
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Posted: 4/30/2017 9:02:12 PM EDT
[#40]
Quote HistoryQuoted:
There are sites like firecalc.com that show you the success rate had you retired at any time in market history. If your plan gives you a 100% success rate, then you could have withstood any market downturn in recent memory. Quote HistoryQuoted:
Quoted:
The age old question, how much is enough. The problem everyone runs into is how do you fight inflation. Sure everyone in GD will say but this index fund or that etf. But what do you do if you would have retired in 2000 or 2007. See how that sucks. It's ok markowitz heals all wounds with enough time, just enjoy your cat food supper while waiting. The point stands......I have seen grown men cry telling me their story about how they were retired, listened to "their Advisor" and then had to go back to work when their shit blew up.....their dream was gone within months. |
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Posted: 4/30/2017 9:12:19 PM EDT
[#41]
Quote HistoryQuoted:
It's all fine and dandy until the government decides they are going to rape the retirement funds to ensure everything is fair. |
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Posted: 4/30/2017 9:23:39 PM EDT
[#42]
Save 20-25% and live within your means. Live life but remember the goal is to live well when you are older. It most definitely pays off. That's why you see old guys in really cool Corvettes!
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Posted: 4/30/2017 9:24:05 PM EDT
[#43]
Ask some old people if they wish they'd saved less or more.
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Posted: 4/30/2017 10:04:20 PM EDT
[#44]
Quote HistoryQuoted:
It's all fine and dandy until the government decides they are going to rape the retirement funds to ensure everything is fair. use as much detail as you think is necessary to explain how this would occur. <fish on> ar-jedi |
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Posted: 4/30/2017 10:06:23 PM EDT
[#45]
Quote HistoryQuoted:
I have software so powerful I know with in a certain standard deviation what's going to happen in the next 6 months given macro economic variables, i.e. major currency crisis, geo politcal crisis, bio logical crisis etc. The point stands......I have seen grown men cry telling me their story about how they were retired, listened to "their Advisor" and then had to go back to work when their shit blew up.....their dream was gone within months. perhaps it was "their Advisor" that was the problem? he/she bought a new Mercedes, and the investor paid for it? 
ps i'm never going to give up on you... 
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Posted: 4/30/2017 10:11:58 PM EDT
[#46]
Nope you're doing good, providing your 401k allocations are good.
I think it was Einstein that said compounding interest is the 8th wonder of the world. |
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Posted: 4/30/2017 10:14:11 PM EDT
[#47]
Quote HistoryQuoted:
well, now... perhaps it was "their Advisor" that was the problem? he/she bought a new Mercedes, and the investor paid for it?
ps i'm never going to give up on you... Quote HistoryQuoted:
Quoted:
I have software so powerful I know with in a certain standard deviation what's going to happen in the next 6 months given macro economic variables, i.e. major currency crisis, geo politcal crisis, bio logical crisis etc. The point stands......I have seen grown men cry telling me their story about how they were retired, listened to "their Advisor" and then had to go back to work when their shit blew up.....their dream was gone within months. perhaps it was "their Advisor" that was the problem? he/she bought a new Mercedes, and the investor paid for it?
ps i'm never going to give up on you... I know I would have more clients if I didn't be so frank with people I meet.
Thanks for being my inspiration.
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Posted: 4/30/2017 10:18:07 PM EDT
[#48]
What is your interest on savings??? If it's less than 2% you are probably losing money.
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Posted: 4/30/2017 11:14:06 PM EDT
[#49]
Quote HistoryQuoted:
you'll have to explain to everyone how "the government" monetizes retirement funds (which include equities and credit instruments, like stocks and bonds) with no adverse affect whatsoever to the rest of the investing universe, nor any adverse affect whatsoever to future tax revenues. use as much detail as you think is necessary to explain how this would occur. <fish on> ar-jedi Quote HistoryQuoted:
Quoted:
It's all fine and dandy until the government decides they are going to rape the retirement funds to ensure everything is fair. use as much detail as you think is necessary to explain how this would occur. <fish on> ar-jedi Barring that, they could designate a mandatory investment in Treasuries, you know, for you own good. Neither are likely to happen...ever. Anything else would cause too much turmoil in the markets/economy. |
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Posted: 5/1/2017 2:42:36 AM EDT
[#50]
Quote HistoryQuoted:
What is your interest on savings??? If it's less than 2% you are probably losing money. Always been good at saving, but not investing. |
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