how much should i save reddit

It seems like (unfortunately for my dreams) I still have a ways to go. Financially speaking, the more you save the better, but personally speaking, typically spending money to a certain point, depending on circumstances makes people happier if they spend it well (on experiences like travel, on nicer place to live, on a social life, doesn't have to be useless gadgets you will forget quickly). Unfortunately, it seems like I am quite a long way away from my dream, but that's okay -- I'll keep taking it one step at a time. Also, even though it's not included in the calculation, be sure to adjust your projected monthly budget to account for any home repairs, which can be estimated to be 1% of your home value annually. Typically, people would allocate 50-70% of their income to cover necessities anyway, so you're just replacing rent, etc with investing. There is not going to be a fixed answer that 'X% is enough'. -Paying student loan for Msc. How Much You Really Need To Save In A 529 Plan. Ask yourself if you are enjoying your life now. So we can't give you an optimal number. How Much Money Should I Have Saved by 30? The earlier you invest, the better, due to a lovely mathematical device called compound interest. This all makes sense. As a rule of thumb, most experts recommend an annual retirement savings goal of 10% to 15% of your pretax income. First time home owner here. I pay $60/month in pmi on the $450k of my house that is mortgaged. Off the top of my head, my takehome is ~$4.5k. (1year) -Living with family. How Much You Should Save At 30, 40, 50, and 60 First of all, everybody should be maxing out their 401k. My friends say I am too young for investing and should spend more. How much should I keep in an emergency fund? My fiancee is 27, and also has a very good job. If you begin setting aside money at age 20, you have to save $479 per month, or about $110 a week, to reach $1.5 million. The maximum … When deciding how to save for a house there are two main costs to consider: the upfront costs and the ongoing costs. How much should you save every month? You should make your decision based on the standard of living you want to maintain and can afford. Here's how to get a personalized target. Invest? Appreciate the added thought and recommendations. Alas, again, even that number might … But what if we’re actually saving too much? still fortunately paid for by parents.) More. I keep between 6 & 8k for emergencies. If absolutely everything somehow fell apart, my parents would be 100% accepting of me moving back home and staying there, etc. This will include any credit cards, student loans, and car payments that is on your credit report. Don’t Forget to Pay Yourself. You should also factor in things like your car (is it reliable? This likely won't be until at the earliest August of 2021, since I have a current lease agreement through then. You can be very responsible and save 20+ percent of your income while spending the rest. The main reason my husband works now is to set up trust funds for our kids. To be completely transparent, if I change companies I would absolutely be getting a raise, somewhere likely between $85-100k. Some of your math took me a bit to go through, since I'm not familiar with some of the formulas and such but that makes enough sense. ), upcoming medical expenses, expected life changes, etc. Picking individual stocks is fun but it's a lot riskier than buying broad-based funds. If you're happy and saving for the future, that's a very good thing. As my bonus fluctuates year over year, its a little more complicated to factor that in and both have maximum limits (18K for the 401K and 11K for the ROTH IRAs). This includes your down … But no, you're not too young to invest. To reiterate, I don't know approximately how much I should have/keep in an emergency fund, I don't know how much % down I should look to save for a house. Many sources recommend saving 20% of your income every month. However, many people have no idea about how much space these files take up and how much space should … How much should I save for my parent's retirement? Popular benchmarks will tell you to have the equivalent of your annual salary banked by age 30. Join our community, read the PF Wiki, and get on top of your finances! Many Americans aren't saving enough. Start with your emergency fund - make sure you don’t touch that money for downpayment. Most of us save (or should save) for four reasons: Emergencies (job-loss, illness, pandemics) Wants & Goals (new home, kids going to college, new car, trip) Retirement; Security; In the article Americans … So you're putting 40-50% into investing/retirement and 20% into paying back your student loans. These things will literally break your bank if you don’t plan for them, so I would recommend the home warranty for the first 2-3 years while you build up your funds. Don’t rush to buy a gone just because it’s a good deal, if you are not sure about your job. Sometimes My friends say I am too young for investing and should spend more. In San Francisco it's probably a safe bet to say buying sooner will save you more money overall, even with pmi and that's not even taking into account the money you are paying in rent while you save … Join our community, read the PF Wiki, and get on top of your finances! As someone in my 40's, who aways saved some cash and very little debt, my only saving money regret is not saving MORE. 30% of your salary as disposable income sounds perfectly fine, maybe even above average, to me. Think of it as the foundation upon which your financial house is built. Fast Answer: 1. You can be very responsible and save 20+ percent of your income while spending the rest. Have a clear idea about your career and location - if you plan to change jobs, then use the time to accumulate funds and information about the new location (if applicable). Do not worry if you have … Some advise saving as much as 20%, as with the 50/20/30 budget popularized by Senator … I make around $80,000 a year, and she makes $110,000 a year. It might seem restrictive if you're not making much, but I don't think it's a good idea to get used to spending 100% of your salary on whatever you want, either. However, I'll add that while it's good to avoid PMI, I wouldn't overindex on getting to 20% down payment. It is important to save and invest for the future but you got to live and enjoy life right now. With all the money in the world, can't turn back time and enjoy a little bit of life at age 25 again though. If you have extra money and you get your jollies from investing ¯_(ツ)_/¯. You should @ that salary shoot for places around $300k, and then save 20% ideally to avoid PMI and also it’s going to be $60k off of the $300k mark roughly, which means it’s an ok loan $240k, as that’s a little stretch of your salary x3. OP, don't discount the present value of your money and time. Hopefully, many of you reading this have saved more. That being said, you should strive to have saved at least one year of salary by the time you reach the age of 30. Obviously in an emergency, I would be cutting down costs wherever possible - not eating out as much, etc. And gold is just an odd choice for anyone. They used to be in the order of hundreds of dollars a month, but these days, a decent credit score means you likely won't even get to $100/month in PMI. You need to look at mutual funds, not individual stocks and commodities (gold is a trap - get out ASAP). Edit: appreciate all the feedback/input/recommendations from everyone. We recommend putting away 15% of your household income into your retirement … The reason is … TLDR; How much should I save to put down on a house? My job is easy enough to work remotely from, but whenever COVID eventually ends I would likely need to go into the office 1-2 days/week -- I'm also not 100% about staying at the job, etc. As long as you're happy with the life you can afford at that savings rate, this is exactly right. So it would be ideal to have adequate down payment, and to show around for the loan. Before making that decision, aim to save at least three months’ worth of expenses for emergencies, save 10% to 15% of your income for retirement and pay off your credit card balance each month. This is the percentage of your salary that you’ll receive as income during retirement. Right now you are living with family. You have dumb friends. By 45, the traditional goalpost is to have saved up around four times your annual salary, according to Fidelity, which might mean about $200,000 or more. The contribution maximum should go up $500 … You can assume closing costs to be 5% of the home, so at max loan amount, ($210k + $15k)/1.05 = $214k is the home price, so you have a $11k closing cost and $4k will be your down payment. Now, your choice of investments leaves something to be desired. However, there are some basic guidelines you can follow when determining how much you should save each month. Should you decide down the road to move out on your own, that would be a nice cushion to have available for use. No outcomes related home. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Let's break this down by goal: 1. Got a 30yr at 3.5. Credit score only 680. You have 2 options: 1) buy a less expensive house, or 2) wait and save more money. I bought my house for 58k I came to the table with 10k. But it always varies. What this means is that a $214k house is out of your budget and you need to buy a much less expensive house as you would have too little for down payment and closing costs. To reiterate, I don't know approximately how much I should have/keep in an emergency fund, I don't know how much % down I should look to save for a house. But I rather choose to buy the stock of the firms I trust than buying a gadgets that won't really increase my quality of life but fun. However, after 2 years, I decided to make moving out a priority. ~$250. Is this rate ok or am I too obsessive? Renting would provide you the ability to move and pursue other opportunities with ease. Always happy to try to explain anything else about my situation and also really appreciate any advice/tips. … Press J to jump to the feed. If you start at age 30, though, that number nearly doubles: You need … In my opinion, you need to find a healthy balance between living in the present and saving for the future. [I know some of these expenses (especially the rent) are not very efficient, but I'd prefer to grill/look into that another time] Car is reliable/newer, and don't expect any health concerns/life changes. Financially speaking, 100% is optimal. If you save … If you're happy, then you're happy. Strive to save 20% of your gross income each month, some experts say. How Much Should You Save? So based on predictions about where the U.S. stock market seems to be headed, how much should you save? We can’t predict what’s going to happen to us or our finances, so we save as much as we can. (Throwaway account since I do mention some relatively personal info). Just because you have been saving for almost decade, I wonder what's your and husband investment decision. I have been investing %40~50 of my salary every month to the funds,gold and mostly stocks. We are pretty close to having enough money for retirement now. Mostly, I don't know how much I should/need to save to put down, how much I should be keeping in my savings for a rainy day, etc. Considering the greater Seattle area, there are some areas where median house price is $700k (near the city/most work places) and others where it's $300k (further from the city/most work places).

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