Money Saved per month

[AshleyJordan]

How much (if anything) are you all able to save per month? Also, when calculating % of income to save, should this number include 401(K) contributions, or is monthly saving over and above that amount?

[CTGirl]

Saving, what's that? :p

[pisces2473]

Ha, Amy! Seriously.

I tried to save a certain amount a month, but I would wind up needing it for something...or even if I was able to set it aside long-term, something would come up and I'd need to transfer it to checking to pay a bill.

[Kitty]

Well, I put away 10% into retirement each month. On top of that I put $50 into a savings (small, I know).

ETA: My company matches the full 10%, so if you figure that's about $1k going into retirement a month (I think). Ugh..I need to figure out my portfolio over there, though. it's a mess. Does anyone have advice for that? I have fidelity and tiaa-cref.

[weary]

How much (if anything) are you all able to save per month? Also, when calculating % of income to save, should this number include 401(K) contributions, or is monthly saving over and above that amount?

this is totally subjective (bolded question) and i'm sure varies greatly from person to person. as far as savings, i have $200 taken off the top of every single paycheck and gone to sort of 'catch-all' account that i use for things like quarterly expenses, irregular expenses (home/car maintenance, medical/dental, etc.), and spending $ for vacations. if those needs are less than expected [and they usually are], the $ just sits there getting nice interest (ING). other short-term savings, retirement [including 401-k], and specific goal savings are done separately. so i guess i'll say at minimum i put away about $433/month (bi-weekly pay schedule), but usually more.

[Winter Storm]

My goal is to put away $200 a month. Some months I can't do that much.

This does not include my 401K.

[pisces2473]

Well, I put away 10% into retirement each month. On top of that I put $50 into a savings (small, I know).

ETA: My company matches the full 10%, so if you figure that's about $1k going into retirement a month (I think). Ugh..I need to figure out my portfolio over there, though. it's a mess. Does anyone have advice for that? I have fidelity and tiaa-cref.
Shhhhh stop mentioning dollar amounts. Someone might figure out your salary.

[Kitty]

That's a really, really rough ballpark. I don't actually know exactly because it goes into different accounts and different funds within those accounts. It's REALLY spread out, so that's totally rouch estimate.

[weary]

Shhhhh stop mentioning dollar amounts. Someone might figure out your salary.

LOL...yeah, i just figured out that kitty & i make similar salaries. :p

[Kitty]

So does anyone have advice for how to manage your portoflio? I had like no strategy when I set mine up.

[pisces2473]

LOL...yeah, i just figured out that kitty & i make similar salaries. :p
Ha, it wasn't you I was talking about though.

Damn! I need to get a better paying job. Or at least get a raise here. :rolleyes:

[pisces2473]

So does anyone have advice for how to manage your portoflio? I had like no strategy when I set mine up.
Nope. I have no idea about my RothIRA either. I just put money into it when I can.

[weary]

So does anyone have advice for how to manage your portoflio? I had like no strategy when I set mine up.
just your 401-k portfolio or all your investments/$ management stuff?

also, what did you do then when you set it up? just pick and choose? (that's what i've usually done myself. :0 )

[Kitty]

just your 401-k portfolio or all your investments/$ management stuff?

also, what did you do then when you set it up? just pick and choose? (that's what i've usually done myself. :0 )

Just my 401k portfolio.

Yup, I just researched a bunch and then did some picking and choosing based on that. I changed my contributions awhile back after I was bored at work one day and did a ton more research about everything. So, now I have a bunch of different stuff...

[weary]

Just my 401k portfolio.

Yup, I just researched a bunch and then did some picking and choosing based on that. I changed my contributions awhile back after I was bored at work one day and did a ton more research about everything. So, now I have a bunch of different stuff...

i think this is the right take and all you can really do beyond that is continue to research/monitor your selections and keep or change accordingly. beyond that i'd say it's something a financial planner, investment manager, etc type person would do for you if you want to get really elaborate or diverse w/ your selections. i run mine by 3 friends, 1 of each are a $ planner, a CFO and an accountant for free advice. :D

[WorkInProgress]

So does anyone have advice for how to manage your portoflio? I had like no strategy when I set mine up.

Nope, I don't know. That's why I asked my financial advisor (they're GREAT and I think everyone should have one...ok, I'll step off my soapbox). One of my Roth IRAs is in domestic something or other and the other one is in foreign something or other. And my 401(k) is domestic (I think) and aggressive, but not totally fluctuating. My 401(k) sign up booklet had a several general suggestions (for slow, moderate, aggressive, super aggressive, etc.), so those who don't really know could use one of those as a guideline (which is what I would have down if I'd had no input).

[Kitty]

Does it cost money to have a financial advisor?

[weary]

Does it cost money to have a financial advisor?

YES. it varies greatly and i would strongly suggest that if you get one, you get one who is NOT through a group like AMEX or similar where they'll try to push their co's products on you. an independent one or one who belongs to a group practice is better, IMO.

[pisces2473]

You should be able to meet with someone through Fidelity and/or TIAA-CREF for free. You have an acc't with them. An outsider--you'd have to pay for that type.

[weary]

You should be able to meet with someone through Fidelity and/or TIAA-CREF for free. You have an acc't with them. An outsider--you'd have to pay for that type.
oh yes, very good point. i forgot that quickly that she's only looking for 401-k advice, not all around! duh!

[MollyM]

I only have a few index funds to pick from in the company retirement plan so it is easy. I have money split among an S&P 500 (large cap) index fund, a small and medium cap fund, and an international fund.
I only have one fund in my Roth right now. I need to research another fund in a different category.

I was told not to have duplicate kinds of funds that invest in the same companies. Even if you have three funds, if they all invest in the same companies, it doesn't help you diversify.
Have you used the Fidelity tools?

Typically, most young people should have at least an aggressive portfolio. Most of your retirement money should be in stock - large, mid, small cap, international.

[WorkInProgress]

YES. it varies greatly and i would strongly suggest that if you get one, you get one who is NOT through a group like AMEX or similar where they'll try to push their co's products on you. an independent one or one who belongs to a group practice is better, IMO.

Totally agree. PMing you Kitty.

[weary]

Typically, most young people should have at least an aggressive portfolio. Most of your retirement money should be in stock - large, mid, small cap, international.
what are you basing this on? solely age?

[MollyM]

what are you basing this on? solely age?
Years to retirement. In the long run, the stocks are going to earn more than bonds. You get the most for your money. However, stocks have the largest short term risk. Though,even if the market has a period of downturn, you most likely will recover it by the time you pull it out for retirement. Diversifying helps manage the risk too. However, as you get older, they suggest moving to a more conservative portfolio so you are not exposed to that risk.

[WorkInProgress]

what are you basing this on? solely age?

Clearly each case is different. But, if I can drag this out of my fuzzy memory, yes, it has to do mostly with age because generally younger people have longer to recover if they suffer losses because of the higher risk involved with "aggressive" investing. (Like, unless the people in question are pretty much set, those getting closer to retirement should invest in lower risk vehicles because they have significantly less time to recover, and may never be able to.) If I'm remembering correctly.

[LakeJay]

Clearly each case is different. But, if I can drag this out of my fuzzy memory, yes, it has to do mostly with age because generally younger people have longer to recover if they suffer losses because of the higher risk involved with "aggressive" investing. (Like, unless the people in question are pretty much set, those getting closer to retirement should invest in lower risk vehicles because they have significantly less time to recover, and may never be able to.) If I'm remembering correctly.

That's what my advisor told me and what I have heard as well.

[weary]

i get the "years to retirement" and have heard it over and over as well. but since the "standard" retirement age seems anything but standard these days and of course so many other factors, i just don't think it can apply as much anymore. just MHO.

[EmberMae]

We are currently saving about 20% of our take-home pay each month. (We will probably be saving next to nothing for the month of December though, christmas spending is pretty out of control this year). However, we have no retirement at this point, it is all in a money market account. Come June my fiance will have access to matching 401k to a max of 5% of his salary so we will begin investing in that at that time. I am a temp and have no benefits, woe is me. Right now we are just trying to build up a nice safety net. Once that happens I should probably focus on getting his car paid off since the interest is much higher than what we're making on the money market.

[Kitty]

I think I'll look into getting someone to help me from Fidelit and tiaa-cref next week.

I just did a little retirement calculator thing on their web site, and it appears I'm on the right track.

[arrow]

I know I'm pretty late in the game on this, but how does one start an IRA anyway? (I didn't have a full-time permanent job until March of this year, and my 401K doesn't start until January). I have about 15-20K saved up on my own, and no debt, but no retirement accounts.
Does one just set up an appointment with somewhere like Fidelity? Or go to a bank? The other day I called a bank to get an application, but I'm not sure that's the right way to go. It's all very confusing to me, as I have little education and my parents, being teachers, mostly have pensions and CD's and have not been very helpful in this regard.
(Ironically, I work for a business news radio network)

[WorkInProgress]

I know I'm pretty late in the game on this, but how does one start an IRA anyway?

I got mine through my financial planner. I'm not sure how to go about it otherwise.

[MollyM]

A lot of people use Fidelity or Vanguard because of the low fees. They have online applications that take about 15 minutes to complete. Banks, credit unions, and the such can offer you more personal service, but you usually pay for that.
Also, many places offer retirement targeted funds. You pick the period you plan to retire and they put the money in different funds based on the years to retirement. They are good if you don't want to learn about and research funds. Otherwise, talk to a professional or research it on your own.

[arrow]

A lot of people use Fidelity or Vanguard because of the low fees. They have online applications that take about 15 minutes to complete. Banks, credit unions, and the such can offer you more personal service, but you usually pay for that.
Also, many places offer retirement targeted funds. You pick the period you plan to retire and they put the money in different funds based on the years to retirement. They are good if you don't want to learn about and research funds. Otherwise, talk to a professional or research it on your own.

That's good advice, thanks. Actually a friend of mine just met with someone at Fidelity to roll over her 401K, and I'm thinking maybe I should do the same. It's good to have someone there to talk you through things at first.

[SpaceMonkey]

Right now, month-to-month, I'm saving (retirement + cash savings) beween 25-30% of my gross salary. Almost 20% of my gross salary goes into retirement funds (My 403b through TIAA-CREF, and my Roth IRA through Vanguard), and the rest of my savings goes to cash savings (ING Direct savings account, plus rotating CD ladders).

[SpaceMonkey]

I know I'm pretty late in the game on this, but how does one start an IRA anyway?

You can just open one online though such companies as Vanguard, T. Rowe Price, or Fidelity (there are others). You will typically have to make an initial minimum deposit of around $3,000. To get around that, some mutual fund companies allow you to start with a low-to-zero minimum balance as long as you elect to make regular, automatic deposits into the fund from another account.

[analogman]

Since we just bought a house I doubt we'd be saving much money in the near future. We are going to try to keep contributing to our 401k accounts though.

I don't consider 401k retirement savings in the monthly saving figure though. That money is not touchable for at least 30 years. Also, it will be so that I can retire, so the money is already earmarked and spent in a sense.

Savings to us means either stocks (in a taxable account), CDs (not the music kind), or other cash equivalents.

Kitty, you might be able to get help from a Fidelity person for free since you have a Fidelity account through your company.

MollyM is right in saying most money should be in stocks of various categories. Index funds are good in that fees are low. Sometimes actively managed funds do better though. Generally speaking, someone our age should be 80-90% stocks.

If you have a Life Stage fund option, that'll be the easiest way to go. I personally think one can do better than those (I have) but they are easy and take zero brain power :) All of the diversifying and asset allocation is taken care of for you.

[sondra_finchley]

Im a big saving and living under my means sort of person- in the past I typically tried to save about half my monthly income. However- I had no benefits and now I feel pretty late in the game here to be getting going on retirement. Ah well, at least Im concerned about it and have a strategy to pay off debt (small credit card amount only and really unobtrusive student loan) and put away as much as I can here in the next few years. And at least we are all HAVING this discussion about savings and retirement and effective saving strategy- there are plenty out there who dont consider it in the least!

[capella]

Apparently I am in the minority here. I save about 30 bucks a month. Whooo! Yeah. I have a lot of debt to pay down before saving will do me much good. I don't have a retirement account, unless you count the Florida state pension that I am not vested in nor am I likely to get. Rock on! I suck.

Seriously though, I just don't have the money. If I saved it, I wouldn't be able to pay down my debt. Where I am currently with finances... it will be at least 2 years before the CC debt is gone. Then there's the car loan. Then student loans. Yeah. Then, I would have the ability to save more than 30 bucks a month.

This is a major part of the reason I want to move to Texas. I would make a LOT more money and I could get into a better financial position MUCH faster. If we move (crossing fingers that it works out) we could pay off all CC debt, the car loan and the school loans in one year. We'd also have no mortgage then and we could save a pant load. We could even own a condo or townhouse outright before we turn 30.

[pisces2473]

Whoo hoo! I'm in the minority with Amy too! Every time I save something and go to make a RothIRA payment, BOOM! Something comes up. It's been a long time since I've been able to put anything in that account. Oh well.

[winneythepooh7]

Whoo hoo! I'm in the minority with Amy too! Every time I save something and go to make a RothIRA payment, BOOM! Something comes up. It's been a long time since I've been able to put anything in that account. Oh well.

Don't feel bad, I am in the same boat. Everytime I get something saved, something comes up again. I know people say that it's wise to just put something away, but I don't see it if I have debts that need to be paid down. I may try again in the new year to put something like $100 a month in my Orange Savings account and not touch it...........that's easier said then done though. I also hate to say it because I really enjoy my job, but I don't have a pension or 401anything there and maybe it would be wise to start looking into another job that does have these perks......the COL sucks here and moving is not an option at this point in time.

[pisces2473]

Winney, you don't want to move again? :p

If I already had some kind of "safety net", I would be fine saving a little more each month. *sigh*

[winneythepooh7]

Winney, you don't want to move again? :p

If I already had some kind of "safety net", I would be fine saving a little more each month. *sigh*

Actually I love it here, so no, I don't want to move again LOL. I hear ya though about the safety net thing. I worry too because of getting married and being responsible for 2 people.........I think for the both of us (me & M) it probably would be wise at some point to sit down with a financial planner. I admit there are just so many things I don't understand or probably even know about money/retirement planning and such.

[pisces2473]

Oh me neither. I don't even get my own account! LOL

[WorkInProgress]

:p I admit there are just so many things I don't understand or probably even know about money/retirement planning and such.

This was actually the biggest reason I continued seeing my FP (besides inertia). I know that I'd like to retire, and I'd like to be able to afford it, so she's helped me figure out a way to do that. On my own, I would never have known what to do, or what would be the best way to go about it. (Mostly because I'm not terribly inclined or interested in doing all the research and legwork myself.)

[beeblebrox]

I save $500 a month, usually my first paycheck of the month. I chose to live below my means and put it in my high yield money market-Citibank e-Savings. I told my knitting teacher that what I make in interest could easily go towards yarn purchases.

I also have a 401(k) where I'm doing the 6% to get the company match. The matching won't occur until I've been there a full year. The 401(k) takes about $88 a month. It'll go up a little next pay period when my small raise kicks in.

[capella]

You know what bothers me... the connotation that those of us who don't save several hundred a month must be living above our means. Not that I'm calling anyone out on that statement... but sometimes it's not a matter of "choosing" anything.

If I "lived below my means" I would be in a cardboard box. I can't even rent around here and save several hundred dollars a month. I do not live an extravagant life. I still don't make enough to save a lot. I won't EVER make enough to save a lot in my profession. And I'm not alone in this.

I guess I should have "chosen" to work in a high-powered, high-paying field so that I could "live below my means" and save tons of money. Yeah. If that's what we should all do then there would be no teachers, journalists, service workers, social workers, etc.

Just venting a little. It's not always a matter of living beyond your means.

[winneythepooh7]

You know what bothers me... the connotation that those of us who don't save several hundred a month must be living above our means. Not that I'm calling anyone out on that statement... but sometimes it's not a matter of "choosing" anything.

If I "lived below my means" I would be in a cardboard box. I can't even rent around here and save several hundred dollars a month. I do not live an extravagant life. I still don't make enough to save a lot. I won't EVER make enough to save a lot in my profession. And I'm not alone in this.

I guess I should have "chosen" to work in a high-powered, high-paying field so that I could "live below my means" and save tons of money. Yeah. If that's what we should all do then there would be no teachers, journalists, service workers, social workers, etc.

Just venting a little. It's not always a matter of living beyond your means.

I know the feeling. It is really hard. I know some people know what I make and may assume I live high on the hog but it's just not like that. I also would love to make more money, but honestly, don't know what else I am qualified to do.

[capella]

I know the feeling. It is really hard. I know some people know what I make and may assume I live high on the hog but it's just not like that. I also would love to make more money, but honestly, don't know what else I am qualified to do.
I am in the middle of figuring out a solution to this problem myself. I should probably start another thread though. Yeah. I think I will. :) Helpful thoughts or advice are always welcome ;)

[yankeeyosh]

Maybe a couple hundred a month. Once in a while, I dump about $500 or 750 into my ING account. I am probably going to go into therapy soon, so it will probably be zero or even negative savings until I can get out of this lease. Then, it might be $300 or so a month.

I do save 4% in my 401(k), but even that is low.

I am rather heartened, though at how people who make less than me are able to save a large percentage of their salary...I don't know the details (I assume they don't pay $1,100 in housing every month), but it's good to see, and it clearly shows that if you're smart with your money, you don't need a gajillion dollar salary to live well and save.

[yankeeyosh]

Shhhhh stop mentioning dollar amounts. Someone might figure out your salary.

very funny....

[beeblebrox]

You know what bothers me... the connotation that those of us who don't save several hundred a month must be living above our means. Not that I'm calling anyone out on that statement... but sometimes it's not a matter of "choosing" anything.

If I "lived below my means" I would be in a cardboard box. I can't even rent around here and save several hundred dollars a month. I do not live an extravagant life. I still don't make enough to save a lot. I won't EVER make enough to save a lot in my profession. And I'm not alone in this.

I guess I should have "chosen" to work in a high-powered, high-paying field so that I could "live below my means" and save tons of money. Yeah. If that's what we should all do then there would be no teachers, journalists, service workers, social workers, etc.

Just venting a little. It's not always a matter of living beyond your means.

I didn't mean to start a huge debate on my comment there. I don't make a huge, huge sum of money (less than 50K). When I said that I chose to live below my means, I meant that I'm not taking the money that I save a month and buying a Coach purse or any other frivilous name brand item. I'm spending within reasonable limits and sometimes feel guilty about getting fast food or a muffin at Au Bon Pain in the morning. Trust me, it's not easy living frugally, but I want that money to go towards something meaningful like a condo. I'm choosing to make smarter purchases and be less wasteful.

[capella]

I don't think you started a huge debate. But I did want to point out that there are people, me for instance, who also don't make wasteful purchases and buy Coach bags (or any new clothes really for that matter) and still can't save a huge chunk. I make 33K a year. I really have no wiggle room.

[SpaceMonkey]

I am rather heartened, though at how people who make less than me are able to save a large percentage of their salary...I don't know the details (I assume they don't pay $1,100 in housing every month), but it's good to see, and it clearly shows that if you're smart with your money, you don't need a gajillion dollar salary to live well and save.

In my case, I fully understand and accept that I am sort of a special case -- I have zero student loans to pay off, for example. I have no car, and no commuting costs. And, even with two roommates, I sacrifice in my living situation and save an extra $175 on my rent by taking the room that is, at best, only half the size of the other two bedrooms. It's basically just for sleeping and for sitting at my computer desk. I don't need to live like this, and I know that other people wouldn't be willing to do so, or are at a stage in their life where having their own place is a priority, and that's understandable.

It really is sort of an irrational compulsion with me. I may need to get help for it some day.

[beeblebrox]

I don't think you started a huge debate. But I did want to point out that there are people, me for instance, who also don't make wasteful purchases and buy Coach bags (or any new clothes really for that matter) and still can't save a huge chunk. I make 33K a year. I really have no wiggle room.

I make just a little more at $35,500, so I do know the feeling of the tight budget especially with the Christmas season.

[yankeeyosh]

In my case, I fully understand and accept that I am sort of a special case -- I have zero student loans to pay off, for example. I have no car, and no commuting costs. And, even with two roommates, I sacrifice in my living situation and save an extra $175 on my rent by taking the room that is, at best, only half the size of the other two bedrooms. It's basically just for sleeping and for sitting at my computer desk. I don't need to live like this, and I know that other people wouldn't be willing to do so, or are at a stage in their life where having their own place is a priority, and that's understandable.

It really is sort of an irrational compulsion with me. I may need to get help for it some day.

Well, it's good and it's bad. It's very refreshing to see that there are 'Yers' who aren't freespenders. But as you said, it can get be a little extreme.

All things equal, though, it's better to be a "binge saver" than a binge spender. Last night, someone (roughly my age) told me that since she's been in boston, she hasn't met a single person who was able to save a dime...everyone seems to be living on credit cards. While I don't think that's necessarily true, I do think that a lot of people do live beyond their means, and I wonder when it will come back to haunt them.

I do think I could cut down on things to save more. For instance, I barely watch TV, yet spend $60 a month on cable. Of course, the rent situation is bad. And then "little" things like parking at the 'T' station, which I could avoid by living closer to the 'T'.

[redav]

I'm curious. It seems to me as though many people who post on these boards are using different definitions for common terms, like savings, income, middle class, and that sort of thing.

Consider "savings." Some include 401(k), some don't. If money is earmarked for some future purpose, do you consider it to be savings?

I find that to answer the question at the beginning of this thread, "How much do you save?" I have to break it into different categories. Saving for retirement is not the same as saving for escrow, versus saving for a rainy day.

For myself, I have an old credit union account out of state that I wanted to keep active, so I had $50/paycheck direct deposited into it. It just happens that amount pays for my car insurance. Twice a year I withdraw those funds and pay my car insurance. Would you consider that savings, considering that it is earmarked for a definite future need?

Anyway, I want to know how and what people today think of finances. I've seen a large disconnect between myself & my friends and all the news articles about rising debt and such (e.g. except for mortgages very few if any of my friends have any debt, and yes, they'll all in their 20s), so I have difficulty understanding where many people's viewpoints are coming from.

[capella]

I think it has some to do with what kind of upbringing and family life people had. In my experience, those who have a lot of debt are those whose parents didn't/couldn't/wouldn't pay for their schooling. These people also tend to be people who supported themselves through school instead of living on their parent's dime. That is just my personal observation of people I know and have known. The people I know who don't have a lot of debt are people who had a lot of parental support while they were getting established. I'm not saying that's good or bad, just that's what I've observed.

[arrow]

In my case, I fully understand and accept that I am sort of a special case -- I have zero student loans to pay off, for example. I have no car, and no commuting costs. And, even with two roommates, I sacrifice in my living situation and save an extra $175 on my rent by taking the room that is, at best, only half the size of the other two bedrooms. It's basically just for sleeping and for sitting at my computer desk. I don't need to live like this, and I know that other people wouldn't be willing to do so, or are at a stage in their life where having their own place is a priority, and that's understandable.

It really is sort of an irrational compulsion with me. I may need to get help for it some day.

I think we have the same situation... my saving is also kind of compulsive

[arrow]

I guess I consdier "saving" to be anything other than "spending," no matter what it's for. But I can see not counting your 401K if it comes directly out of your paycheck, since you don't even have the money in hand. Some people probably prefer to pretend it's not there so they aren't tempted to get at it or they aren't bothered if it's tanking, while I personally would like to count it in my grand total of savings because I feel comfort in watching the numbers move up and down.

[redav]

I guess I consdier "saving" to be anything other than "spending," no matter what it's for. But I can see not counting your 401K if it comes directly out of your paycheck, since you don't even have the money in hand. Some people probably prefer to pretend it's not there so they aren't tempted to get at it or they aren't bothered if it's tanking, while I personally would like to count it in my grand total of savings because I feel comfort in watching the numbers move up and down.

Indeed. Things that are automatic, such as direct deposits, automatic enrollment in savings programs, auto increases savings deductions, etc. have been shown to be wildly successful at helping people save. The primary principle seems to be "out of sight, out of mind." Likewise, when people are faced with decisions, many delay rather than choose. When it comes to enrolling in a 401(k) or starting a Christmas club account, they just put it off and don't do it. Companies that provide auto enrollment, where you have to actively opt-out have employees that are much more successful at saving.

[pisces2473]

Amy, i hear you...I have no wiggle room either. 28K only goes so far. I'm not spending like crazy either.

[SmilesSoSweet]

I've been MIA for a couple of days so I'm just going to post my answer to what the OP asked.

I save more than other people I know. Here's my break down. But I now live in a much cheaper city and make more income, so saving has much easier for me.

$15/wk into my ING Direct "Rainy Day Fund"
$35/wk into my ING Direct "House Fund"
$30/wk into my Custom Club Savings account from my credit union
$100 twice a month into a Roth IRA
$125/pay check into a 401(k) account

I also try and put some of my paycheck that is directly deposited into my checking account into my regular savings, but I haven't been doing that good with it. I just need to set that up online. My last job, I was able to deposit my paycheck up to three different accounts. My current job, I can't do that, but I'll look into my own credit union doing that.

So that's my savings. Since graduating from college I've been putting anywhere from 5%-10% of my income into savings. Nowadays it's closer to 10% which I'm VERY fortunate that I can do such.

[vxmike]

I am rather heartened, though at how people who make less than me are able to save a large percentage of their salary...I don't know the details (I assume they don't pay $1,100 in housing every month), but it's good to see, and it clearly shows that if you're smart with your money, you don't need a gajillion dollar salary to live well and save.

Correct. I live well beneath my means in a ghetto apt and driving a 13 year old car. I save about 85% of my net pay each month.

[vxmike]

I think we have the same situation... my saving is also kind of compulsive

Same here. Despite the fact my income is very solid, it pains me to spend more than I have to. I live in a place where they sling crack out front, my car is 13 years old, and I feel guilty about spending $4 at Wendys. Sometimes it seems the more I make the more passionate about saving even greater amounts I get.

[mishl982]

I put I think 4% into my 401K which my company matches. I also within the past month or two made $200 out of each paycheck go into my savings account. That way I can't miss it, or try and spend it, and it forces me to save. I've cut back on my excess spending a lot but I've also started using my rewards card for everything, so I'm not sure if I'm in a better financial situation now, lol.

[yankeeyosh]

Correct. I live well beneath my means in a ghetto apt and driving a 13 year old car. I save about 85% of my net pay each month.

Interesting...I wonder if this is a new class of this generation...the "binge savers". I honestly have not met a single person like this off the boards. Yet, it seems to be rather common here. How did this come about? Was it upbringing...was it rebellion against Boom money habits, where you spend like it's no tomorrow...was it fear...was it a drive to retire at 45? Personally, if it's the latter, I am not a big fan of that, since you never know what tomorrow will bring, so you should live for today...yet it's a personal choice, and I respect that.

[red]

I think it has some to do with what kind of upbringing and family life people had. In my experience, those who have a lot of debt are those whose parents didn't/couldn't/wouldn't pay for their schooling.

i think i agree with some parts of this statement. i think the attitudes that you have about money are definitely related to your upbringing. my parents were both teachers so we never had much money, but they did instill in me the importance of saving and managing money. we had a savings account from the time we were little kids and they really taught me a lot about how to stretch a dollar. i have no student loans because i went to a college that cost less than 5k a year in tuition. i paid about $125 a month in rent. my husband also didn't have money growing up and didn't have family help (although he did help to put his little sister through college once he was working) but he was raised with a totally different attitude about money. if you had it you spent it. he also went to a SUNY school and was able to get pell grants and basically lived in a dump and worked his butt off.

savings for retirement is very important to us. my company matches 6% and i put 10% into my 401k. my husband doesn't get a match but he tries to put a good % of his salary into the 401k. we also have an ING account that we use for an emergency fund. we have a few other investments as well.

one thing i would say to pisces and winney is a good thing to do after you get married is to have a financial meeting of sorts. we were forced to do this since my husband was laid off a month before our wedding. but we still keep up some of the things we decided to do back then. we came up with a financial plan together for our future. now every once in a while we sit down and have a meeting about our financial goals, etc.

[yankeeyosh]

Anyway, I want to know how and what people today think of finances. I've seen a large disconnect between myself & my friends and all the news articles about rising debt and such (e.g. except for mortgages very few if any of my friends have any debt, and yes, they'll all in their 20s), so I have difficulty understanding where many people's viewpoints are coming from.

I just think that in this generation, there are more extremes. As I mentioned previously, there are more "binge spenders" and "binge savers". There's less of a middle ground that saves at a measured pace, but while at the same time, splurges once in a while. To many of us, either we feel we "have" to own a home by 25 or "have" to retire by 50, or we just spend like the world was going to end.

[SpaceMonkey]

I just think that in this generation, there are more extremes. As I mentioned previously, there are more "binge spenders" and "binge savers". There's less of a middle ground that saves at a measured pace, but while at the same time, splurges once in a while. To many of us, either we feel we "have" to own a home by 25 or "have" to retire by 50, or we just spend like the world was going to end.

Despite my earlier posts, I don't think I'm comfortable classifying myself as a "binge saver," either. I have fairly expensive beer tastes, for example.

[yankeeyosh]

I don't think I'm comfortable classifying myself as a "binge saver," either. I have fairly expensive beer tastes, for example.

Well, that's why it's in quotes. The question is what is a good rate to save without going overboard. I am very impressed, though, with the financial acumen of many of the people on this board. I see "laypeople" who don't even work in the financial sector able to discuss methods of savings like they are seasoned pros. I worked as a retirement plan administrator for four years, and I still don't know how to save. Perhaps I might be wrong in a way when I say that this gen is full of free spenders...to a large degree, this might be the first generation since the Silent Generation that really understands the value of saving money. There's still a tremendous amount of work that needs to be done...there are still too many "binge spenders" out there in their 20s, but considering all the obstacles...like heavy debt, Boom parents, and the like, some of us have done remarkably well.

[winneythepooh7]

I think the hard thing for me is not knowing what a realistic amount is to save. As I mentioned before, I tried to put in alot more a month into my savings. However, I was finding a lot of "emergencies" or things I didn't plan for were coming up, so I kept taking it out. It will be great once I pay my credit card off too. That eats up a lot of money each month.

[yankeeyosh]

I think the hard thing for me is not knowing what a realistic amount is to save. As I mentioned before, I tried to put in alot more a month into my savings. However, I was finding a lot of "emergencies" or things I didn't plan for were coming up, so I kept taking it out. It will be great once I pay my credit card off too. That eats up a lot of money each month.

That's the thing...the emergencies. Every time I save a few hundred, bam, something happens...like $400 on my car (it was almost $700, but they were trying to screw me).

Hopefully I'll get a good tax refund this year. That's what I'm waiting for...

[winneythepooh7]

That's the thing...the emergencies. Every time I save a few hundred, bam, something happens...like $400 on my car (it was almost $700, but they were trying to screw me).

Hopefully I'll get a good tax refund this year. That's what I'm waiting for...

I am putting any money I get from my taxes, Christmas, etc. towards my credit card.

[wordsmith]

Well, that's why it's in quotes. The question is what is a good rate to save without going overboard. I am very impressed, though, with the financial acumen of many of the people on this board. I see "laypeople" who don't even work in the financial sector able to discuss methods of savings like they are seasoned pros. I worked as a retirement plan administrator for four years, and I still don't know how to save. Perhaps I might be wrong in a way when I say that this gen is full of free spenders...to a large degree, this might be the first generation since the Silent Generation that really understands the value of saving money. There's still a tremendous amount of work that needs to be done...there are still too many "binge spenders" out there in their 20s, but considering all the obstacles...like heavy debt, Boom parents, and the like, some of us have done remarkably well.

There's also a pretty big disconnect between knowing how to save, and not having a high enough income to allow for a more than paltry savings. I know and understand EXACTLY how to save. That doesn't make my income magically big enough to realistically support saving the amount I'd like to be saving. Having a relatively low savings isn't related to not understanding how to save. It falls under the "you can't squeeze blood from a turnip" category. I'm pretty much the antithesis of "free spender." That doesn't mean I have tons in savings.

[yankeeyosh]

There's also a pretty big disconnect between knowing how to save, and not having a high enough income to allow for a more than paltry savings. I know and understand EXACTLY how to save. That doesn't make my income magically big enough to realistically support saving the amount I'd like to be saving. Having a relatively low savings isn't related to not understanding how to save. It falls under the "you can't squeeze blood from a turnip" category. I'm pretty much the antithesis of "free spender." That doesn't mean I have tons in savings.

Well, it's tough to save anything if you're making below a ceratin amount. I'm not saying at all that you're a "free spender". However, what I am saying is that there are a lot of people who have high incomes yet don't know how to save (even if they dont' have that extraordinary expenses), and there are those who don't have high incomes, but save an unusual amount. I have no idea what the percentages are...and I will abstain from saying anything else.

My only question is what is a "good" savings percentage. It is good that people are saving, but if it gets too extreme and too widespread, it could have some repercussions on the overall economy, since consumers make up two thirds of the GDP. My concern is that the overspending we are doing (thanks mostly to the Boom) will come back to haunt us in later years, especially if younger generations, in their prime spending years, "oversave".

[pisces2473]

one thing i would say to pisces and winney is a good thing to do after you get married is to have a financial meeting of sorts. we were forced to do this since my husband was laid off a month before our wedding. but we still keep up some of the things we decided to do back then. we came up with a financial plan together for our future. now every once in a while we sit down and have a meeting about our financial goals, etc.
Financial meeting with just us? Or us and a professional? Wouldn't it be good to talk about it NOW? Not after we get married?

[pisces2473]

There's also a pretty big disconnect between knowing how to save, and not having a high enough income to allow for a more than paltry savings. I know and understand EXACTLY how to save. That doesn't make my income magically big enough to realistically support saving the amount I'd like to be saving. Having a relatively low savings isn't related to not understanding how to save. It falls under the "you can't squeeze blood from a turnip" category. I'm pretty much the antithesis of "free spender." That doesn't mean I have tons in savings.
Yup, that's me too. I know how to save, it's just where am I going to GET THE MONEY FROM TO SAVE?

[vxmike]

Interesting...I wonder if this is a new class of this generation...the "binge savers". I honestly have not met a single person like this off the boards. Yet, it seems to be rather common here. How did this come about? Was it upbringing...was it rebellion against Boom money habits, where you spend like it's no tomorrow...was it fear...was it a drive to retire at 45? Personally, if it's the latter, I am not a big fan of that, since you never know what tomorrow will bring, so you should live for today...yet it's a personal choice, and I respect that.

In my case probably a combination of all those factors, but I guess it's really just common sense to me. I understand the value of having money saved for when I might need or really want it versus just spending it today for the sake of unnecessary spending. In reality I make a lot more money than I need to live, so saving the rest is the right thing to do rather than live a lifestyle that really isn't me. I'm happy with my cheap apt and old car, so I'd rather save towards being able to quit working at a much younger age if I desire.

[yankeeyosh]

In my case probably a combination of all those factors, but I guess it's really just common sense to me. I understand the value of having money saved for when I might need or really want it versus just spending it today for the sake of unnecessary spending. In reality I make a lot more money than I need to live, so saving the rest is the right thing to do rather than live a lifestyle that really isn't me. I'm happy with my cheap apt and old car, so I'd rather save towards being able to quit working at a much younger age if I desire.

That's cool...I can respect that.

[wordsmith]

My only question is what is a "good" savings percentage. It is good that people are saving, but if it gets too extreme and too widespread, it could have some repercussions on the overall economy, since consumers make up two thirds of the GDP. My concern is that the overspending we are doing (thanks mostly to the Boom) will come back to haunt us in later years, especially if younger generations, in their prime spending years, "oversave".

I honestly can't say I'll ever look at it as being "my duty" to spend to buoy the economy. Plenty of other folks are gonna take care of that for me, I think.

[WorkInProgress]

Financial meeting with just us? Or us and a professional? Wouldn't it be good to talk about it NOW? Not after we get married?

I'm not married, and you weren't talking to me, but I'm going to butt in anyway.

If I were engaged to be married, I would have a meeting with me, my fiance and my FP to discuss what our financial plan will/would/should be when we get married. I'd also probably have one with just me and my financial planner to go over my plans, and I'd encourage my fiance to do the same (probably before the joint meeting). I'd also have a meeting just me and the FI after that, and then shortly after the wedding, just to check in and see how things are going or if there's anything to discuss.

[WorkInProgress]

I honestly can't say I'll ever look at it as being "my duty" to spend to buoy the economy. Plenty of other folks are gonna take care of that for me, I think.

Ok, I laughed. Kinda like in that episode of West Wing when Donna wanted her tax refund and was arguing with Josh about it.

[red]

do it now, do it after, doesn't matter. whenever you have time. i guess we did it like a few weeks before we got married. and if you have an FP then great, but even if you can do it together and decide what some reasonable goals are, that's a good thing.

we had like zero money when we got married since we were both living off my publishing salary until he started to get unemployment, so we didn't have money to save. but we still talked about things a lot and i think it was a good thing. we were living together for a year before that but we didn't have the joint checking account until around that time. we had a joint savings account which we sort of burned through and he had CC debt. we got a very low interest card and he transferred the debt over, and then oh there was the fun of him needing like a root canal and all of this dental work. we had to charge that to the tune of $2,500... it was good to get on the same page about everything, to know each other's whole financial situation, to talk about what our priorities and goals were, about spending money and paying bills and all of that stuff.

[pisces2473]

Yeah, that's cool--talk about it whenever. We talk about money all of the time. We have a joint account for household stuff, and personal accounts. We need to talk some more, but that's par for the course.

[redav]

Well, it's tough to save anything if you're making below a ceratin amount. I'm not saying at all that you're a "free spender". However, what I am saying is that there are a lot of people who have high incomes yet don't know how to save (even if they dont' have that extraordinary expenses), and there are those who don't have high incomes, but save an unusual amount. I have no idea what the percentages are...and I will abstain from saying anything else.

My only question is what is a "good" savings percentage. It is good that people are saving, but if it gets too extreme and too widespread, it could have some repercussions on the overall economy, since consumers make up two thirds of the GDP. My concern is that the overspending we are doing (thanks mostly to the Boom) will come back to haunt us in later years, especially if younger generations, in their prime spending years, "oversave".

I have heard a good rule of thumb is to save 10%. The problem, as I'm sure many can attest to, is that once a budget, aptartment, etc. are in place, it is very difficult (or impossible) to go back and squeeze out that much. Thus, when making plans and big decisions (e.g. where to live), the amount of savings needs to be included first, otherwise it will get left out.

I am a big fan of direct deposit for savings. By limiting your contact with the money, it becomes easier to not spend it. I am also a fan of maintaining a standard of living despite raises/bonuses, putting the bulk of any extra into savings of some sort--e.g. 401(k) or paying down mortgage.

I wouldn't worry about the economy. Saving/investing makes more money available to businesses while keeping inflation low. If no one saved, then banks would have no money to lend for mortgages or to start new businesses.