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That depends entirely on your personal goals, your income, and your expenses.
Someone who wants to retire by the time they're 50 is going to be saving heavily.
Someone who makes $100k/yr has the potential to save much more than someone making $35k/yr.
Someone up to their eyeballs in credit card debt is potentially saving less than someone who is debt free.
If OP wants to know how much s/he should be saving, s/he should put together some goals, figure out a time frame s/he wants to complete these goals, and save based on that. OP should speak to a financial planner, which often times is provided free of charge through your bank or your place of employment.
What does savings and retirement have to do with each other. I have no desire to retire early. Will work till at least 67.
I save a lot only cause my mortgage is long paid off, I have a rental property paid off, have two cars paid off. And my main house is small and easy to maintain. I also regularly grieve my property taxes and review insurance costs.
I have three young kids so I am busy with that which saves a lot of money as no time for expensive hobbies, fancy vacations or dinners out at expensive restaurants. I only drive to train so a newer used car every 10-15 years is fine.
But my salary has rising, portfolio throws off more and more income and I have rental income. I am at the point where my annual housing cost is one weeks pay.
Folks once they hit 45 have less and less expenses at least till kids hit college.
I know a buddy who lives in a paid off modest house, likes his neighbors does not want to move, kids in public schools and also drives to train so just has a plain old car. He is a CEO making around 6 million a year. He likes his job and has no desire to retire early.
Bottom line when your income far exceeds your expensives is when savings really starts to rise. Focus on earning more and keeping expenses the same or less.
Actually that is what I usually save each month. Not hard to do. If you max out your 401k and get a decent bonus of maybe 60-90K and then just save a few thousand each month out of paycheck you get to 15k average.
But you need extrmely little expenses to make it work. Most folks if they had an extra 15k would buy a big trade up car, lease two new cars, hire a baby siter, go out to fancy dinners and vacations.
Actually that is what I usually save each month. Not hard to do. If you max out your 401k and get a decent bonus of maybe 60-90K and then just save a few thousand each month out of paycheck you get to 15k average.
But you need extrmely little expenses to make it work. Most folks if they had an extra 15k would buy a big trade up car, lease two new cars, hire a baby siter, go out to fancy dinners and vacations.
I go to dinner I order off dollar menu.
I guess if one makes 250k/year it's possible. At 100k/year it might be a stretch. Not applicable to 95% of the people in the US, though.
What does savings and retirement have to do with each other. I have no desire to retire early. Will work till at least 67.
I save a lot only cause my mortgage is long paid off, I have a rental property paid off, have two cars paid off. And my main house is small and easy to maintain. I also regularly grieve my property taxes and review insurance costs.
I have three young kids so I am busy with that which saves a lot of money as no time for expensive hobbies, fancy vacations or dinners out at expensive restaurants. I only drive to train so a newer used car every 10-15 years is fine.
But my salary has rising, portfolio throws off more and more income and I have rental income. I am at the point where my annual housing cost is one weeks pay.
Folks once they hit 45 have less and less expenses at least till kids hit college.
I know a buddy who lives in a paid off modest house, likes his neighbors does not want to move, kids in public schools and also drives to train so just has a plain old car. He is a CEO making around 6 million a year. He likes his job and has no desire to retire early.
Bottom line when your income far exceeds your expensives is when savings really starts to rise. Focus on earning more and keeping expenses the same or less.
I think you are imparting your own view on that post. They didn't say that savings was ONLY tied to retirement, simply they pointed out a scenario that affects how much people save (people who want to retire early).
I enjoy what I do but I still plan to retire early and then just work occasionally or do charitable work or run a small local business. Things that don't net me the kind of income I have now but would enjoy doing without worrying about how much I make.
Actually that is what I usually save each month. Not hard to do. If you max out your 401k and get a decent bonus of maybe 60-90K and then just save a few thousand each month out of paycheck you get to 15k average.
But you need extrmely little expenses to make it work. Most folks if they had an extra 15k would buy a big trade up car, lease two new cars, hire a baby siter, go out to fancy dinners and vacations.
I go to dinner I order off dollar menu.
Do I really have to point out to you that your income is well beyond the median, and that the vast majority of us don't have the means to save $15k each month?
Actually that is what I usually save each month. Not hard to do. If you max out your 401k and get a decent bonus of maybe 60-90K and then just save a few thousand each month out of paycheck you get to 15k average.
But you need extrmely little expenses to make it work. Most folks if they had an extra 15k would buy a big trade up car, lease two new cars, hire a baby siter, go out to fancy dinners and vacations.
I go to dinner I order off dollar menu.
Congratulations on your ability to have $180k a year in extra income.
Now realize that's over 3 times the median household income in the US and you'll see why no one thinks what you're doing is impressive at all.
Your "decent bonus" alone is more than most people make entirely.
Congratulations on your ability to have $180k a year in extra income.
Now realize that's over 3 times the median household income in the US and you'll see why no one thinks what you're doing is impressive at all.
Your "decent bonus" alone is more than most people make entirely.
I'm impressed by his savings because most people making that amount of money don't have the discipline to order off the dollar menu. That takes extreme willpower. I'm assuming that he makes around $300K+ (I would have guessed less but he mentioned he has 3 kids). At that level even I wouldn't order off the dollar menu and I'm consider myself extremely frugal.
I'm impressed by his savings because most people making that amount of money don't have the discipline to order off the dollar menu. That takes extreme willpower. I'm assuming that he makes around $300K+ (I would have guessed less but he mentioned he has 3 kids). At that level even I wouldn't order off the dollar menu and I'm consider myself extremely frugal.
Heavens no! Eating off the dollar menu is okay every blue moon, but to do so often is savings in the bank, but cost to health.
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