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Of course, your paycheck is a function of your W4, so you control the size of your paycheck. My point is, your paycheck isn't enough information.
Let's do this at a gross level.
What is your gross compensation, your state tax rate, dollar value of deductions.
Then, let's work on your "fixed" costs. What is your monthly mortgage (or rent)? Other "fixed" payments such as car payments, child support, medical & dental, etc?
What is your annual bill for utilities, property taxes, etc?
How much do you spend on food? gasoline? entertainment?
Cable bill? phone bill? etc?
Give us a broad picture & perhaps we can help you save more money.
If someones paycheck is $1180 their not going to save $880 a month unless they live at home and take the bus to work.
Going over this person's budget isn't going to help them save $880 a month from a $1180 paycheck.
I graduated from college at 20 approximately $50,000 in debt from student loans.
I graduated from business school at 22 with a total of about $100K in debt in student loans. I paid it off in 10 years.
My first job after school was for $25,000 per year.
I married at 30. My wife had a modest level of debt (about $15K) when we married.
I semi-retired at 44. I say semi-retired because there is no such thing as retirement -- as other people have noted, you just change what you do every day.
We now have a very solid 8 figure nest egg. We have no debt.
It can be done. It is not impossible. It may not be likely, but it is not impossible.
I graduated from college at 20 approximately $50,000 in debt from student loans.
I graduated from business school at 22 with a total of about $100K in debt in student loans. I paid it off in 10 years.
My first job after school was for $25,000 per year.
I married at 30. My wife had a modest level of debt (about $15K) when we married.
I semi-retired at 44. I say semi-retired because there is no such thing as retirement -- as other people have noted, you just change what you do every day.
We now have a very solid 8 figure nest egg. We have no debt.
It can be done. It is not impossible. It may not be likely, but it is not impossible.
You must of made a high income to save that much. You are the exception to the rule. I have a family member who retired at 48 without a college degree, but that's not normal.
Yeah, it's difficult to ignore instant gratification, but saving $1 million is within almost everybody's reach.
What people can do is miles apart from what they actually do.
It is not in reach of people who make too little of an income. Saving 1 million might be in most people's reach, but most people don't do it.
Having a healthy attractive body is in most people's reach, but most people don't do it. Losing weight is in most people's reach, but most don't do it.
Getting a 4 year college degree to get a higher paying job is in most people's reach, but most people don't get a 4 year college degree.
Staying married to their spouse is in most people's reach, but 50% get divorced.
It's more realistic to tell people to prepare to lower their bills, so they can live mostly off their social security.
If someones paycheck is $1180 their not going to save $880 a month unless they live at home and take the bus to work.
Going over this person's budget isn't going to help them save $880 a month from a $1180 paycheck.
Well you have to take a few things into account. 880 @ 5% real return nets 1mm in 35 years adjusted for 3% annual inflation, non adjusted it's over 2 million. Most people will not need this much and most people will get social security which is adjusted for inflation and will greatly reduce the dollar figure needed. 880 doesn't have to come out of your pocket either, employer contributions can impact that figure. My wife and I contribute just under 3000.00 a month to our 401ks and the employer contributions amount to another 1000.00 a month
What people can do is miles apart from what they actually do.
It is not in reach of people who make too little of an income. Saving 1 million might be in most people's reach, but most people don't do it.
Having a healthy attractive body is in most people's reach, but most people don't do it. Losing weight is in most people's reach, but most don't do it.
Getting a 4 year college degree to get a higher paying job is in most people's reach, but most people don't get a 4 year college degree.
Staying married to their spouse is in most people's reach, but 50% get divorced.
What is your point? The opportunity is there, but you can't force people to save/invest. Americans have the 3rd lowest tax burden in the OECD, the 5th highest median income, but the 27th highest median wealth.
It must be hard to save 1 million, because the vast majority never do. If it was so easy more people would have 1 million saved.
What percent of people have 1 million saved? I'm not talking about adding the value of their home into the equation either.
The vast majority never do because the vast majority do not understand how to invest well. Or, by the time they figure it out, it is much later in the game and they have missed out on powerful compounding.
Well you have to take a few things into account. 880 @ 5% real return nets 1mm in 35 years adjusted for 3% annual inflation, non adjusted it's over 2 million. Most people will not need this much and most people will get social security which is adjusted for inflation and will greatly reduce the dollar figure needed. 880 doesn't have to come out of your pocket either, employer contributions can impact that figure. My wife and I contribute just under 3000.00 a month to our 401ks and the employer contributions amount to another 1000.00 a month
This person was talking about saving 1 million and wasn't talking about social security being involved.
Wow, you and your wife must be wealthy to contribute that much.
What is your point? The opportunity is there, but you can't force people to save/invest. Americans have the 3rd lowest tax burden in the OECD, the 5th highest median income, but the 27th highest median wealth.
My point is it's just not going to happen for the majority of people. Instead of telling people they need to save this much money. People should be told to prepare to live off of social security, because that is closer to reality for most people.
Geez stop making people feel like losers for not saving enough. When you haven't saved much money like myself all this does it make someone feel like dirt. When in fact the majority of people are in this situation.
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