im 20 and have 1K in bank. I am a real man.
im 20 and have 1K in bank. I am a real man.
im also 20 and have 500 in the bank with $600 due in 2 weeks for rent and utilities. I also have to find a way to buy food and pay for school books. this is why i cant see how someone makes a thread because he/she is insecure or curious about how much other people have saved when they allegedly have 20 grand.
im 20 wrote:
I am a real man.
Oh no you didn't . . .
I'm sure that is a major factor for many people. But it's certainly not the most critical factor - my parents invested/contributed $0 towards my college education. For me, the #1 factor was scholarships, and the #2 factor was my own individual savings.
polar wrote:
I think all of this depends on how much money your parents/family is investing in your college education, not how much youre saving.
I'd say what you have at 21 is borderline meaningless, a more useful early indicator would be status at 30 or 35 I think.
obviouslee. wrote:
- give it another 5 or so years and the down payment will be much less when houses are about 50% of their current prices.
you think the housing market is going to tank another 50% in the next 5 years?
Groundskeeper Willie wrote:
you think the housing market is going to tank another 50% in the next 5 years?
Nationally, yes, I think it's certainly possible. I think 30% is almost a given, just to get back to historical average. And if we overcorrect at all, it could easily drop that much. If I had to guess I'd say 30%+ in the next 5 years, and around 50% in the next 5-8 years. Here is a graph to give you an idea of where I'm coming from (it's the 2nd graph on this webpage):
http://agentgenius.com/real-estate-mortgage-economy/case-shiller-home-price-index-chart-updated-for-2011/And remember, most bubbles usually overcorrect on the downside.
I had approx 30k saved when I finished college. About 7k of it from bar mitzvah/birthday money over the yrs, the other from 2 summer internships invested in stock mkt. I was lucky enough for parents to pay college
I have generally been a fckup since graduating but since I have solid financial backing (parents) its all good
Ages 18 through 21 my savings fluctuated from 0 (In august right after tuition was due) to 7k right before tuition was due.
obviouslee. wrote:
No program for sale. And, the way I did it would be a little late for somebody starting at 18-20 in hopes to have it by 21.
There are books books I've read that I really like: 1.) The Millionaire Next Door; and 2.) Your Money or Your Life.
The Millionaire Next Door illustrates the importance of it's not so much the amount you make, but the amount you keep. It has examples of couples of modest incomes (some never made more than $40k in a year) dying with multi-million dollar portfolios. Just from living below their means and saving.
Trying to keep up with the Joneses, and buying stuff you don't need doesn't work at any income level if you want to accumulate any amount of wealth... at least in my experience.
I don't plan on dying with a multi-million dollar portfolio... unless I die accidentally while on vacation, blowing the money I've been saving my whole life
clarksonxc wrote:
I don't plan on dying with a multi-million dollar portfolio... unless I die accidentally while on vacation, blowing the money I've been saving my whole life
Ahh, but there's the rub. If you are the type of person that would actually try to blow ALL the money you've saved your whole life, you probably are not the type of person that would accumulate a whole lot relative to your income to begin with.
Something about valuing money enough to save a bunch of it leads to not wanting to waste it. Spending some on vacations or whatever you like to do is one thing, but blowing it all is more the mentality of somebody that rarely saves much.
I think I am very similar to you, O-Lee, in my frugal nature and lifelong saving tendencies, but I am currently struggling with why I should do this. What good is having all of this wealth accumulated? I do not enjoy looking at my bank account and seeing a large number, but I do like not feeling stress or ever having to worry about financial obligations. Do you think keeping a substantial nest-egg (1 year rather than the often suggested, rarely heeded 3 months of expenses, maybe?) and spending the rest on toys & trips is a sustainable way to live?
I think being more frugal to begin with is a much better idea.
According to your graph you think home values only rose 8% since 1890.
1) A lot of people don't realize the purpose of a portfolio. The purpose is to save up enough so you can LIVE on the INTEREST. It's like a college's endowment. So in that case yes, you will die with a huge portfolio.
2) As has been reverberated here by other posters, having money at a young age is more about saving than earning. I probably saved $1000 in college just by not blowing on the stupid stuff most people do (alcohol, dorm stuff, etc).
3) I miss the ol' days too. My first savings account had a 5% annual interest rate. It's down to 0.75% now.
4) Can anyone tell me about high-return online savings accounts? The nonexistent interest rate in my current savings account is getting me down.
fsdfsdfadsadf wrote:
4) Can anyone tell me about high-return online savings accounts? The nonexistent interest rate in my current savings account is getting me down.
I have an online savings thru Sallie Mae and I believe the interest rate on it is 1.10%, one of the highest I found when I researched. I think 1.15% was the highest I found. Would definitely like to have a higher rate, but nobody offers anything above that.
negative $400.00
I graduated with a $400 student loan. Went downhill from there to being indebt about $16K to the IRS 7 years later (capital gains on sale of a home - back then there was no exclusion). That was the lowpoint of my financial situation.
This is one of those "Things people brag about on LetsRun" thread contenders.
Very entertaining.
How'd you get out of it?
It all depends on what you value. Stay true to whatever you value and what is going to make you happy. If that is some savings and the rest on trips & toys, then go for it. That's what money is for. That's why you work hard - to hopefully do some of the things you want to do. I would just suggest that you really try to figure out what you value. Don't buy stuff or go places just because you bought the marketing pitch or because you think it will impress other people. Do it or buy it because you've thought about the decision and are sure it's what you want. I think several people I know are unhappy with themselves or their situations, so it's almost like they're seeking retail therapy. It might give a short-term buzz, but it's not sustainable, and it doesn't make them happy. They end up just as unhappy... and broke. They'd be better off addressing their underlying issues.Personally, I definitely value financial security, and the freedom it provides, and the lower stress. I like to have options, and I don't want to HAVE to work my whole life if I don't want to. I don't want to be stuck in a job I hate like many people seem to be. I don't want to be one paycheck away from financial disaster. I want to be able to buy something if I want it. I want to be able to help my family or friends if they need it. Hopefully I am fortunate enough to enjoy whatever my work happens to be, but I want to have the option of walking away from it, or working part-time, or changing careers if I want to.To me, a big house full of stuff just obligates me to take care of more stuff and maintain it all, which uses up my time, which I value to do other things with besides maintaining stuff. I do just about everything I want to do - I'm just fortunate that my interests don't cost a lot of money - books, running, investing, hanging out with family/friends, hiking, gardening, Netflix, are pretty cheap.
Chinese Chicken wrote:
I think I am very similar to you, O-Lee, in my frugal nature and lifelong saving tendencies, but I am currently struggling with why I should do this. What good is having all of this wealth accumulated? I do not enjoy looking at my bank account and seeing a large number, but I do like not feeling stress or ever having to worry about financial obligations. Do you think keeping a substantial nest-egg (1 year rather than the often suggested, rarely heeded 3 months of expenses, maybe?) and spending the rest on toys & trips is a sustainable way to live?
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