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I am pretty new to the adult world but some how I accumulated 12,000 in savings and I have no idea how much this actually is. For example i've never put a down payment on a house or purchased a car.
Originally I was thinking 20,000 would be a good amount to stay around and fluctuate at. To me 12,000 seems kind of weak in terms of burning through it in case of a complete emergency.
That said, it may be a lot for your age/history (you stated you are new to the adult world), and it may be plenty to satisfy 6 months or so of financial obligations.
How long could you live off of this? That would really answer if it is a lot or not.
Asking "is it a lot" is all relative, I answered "no", because to me it is not a lot, but to you or another person, it may be a lot. As mentioned, this being "a lot", depends on your financial obligations, and more subjectively on your age and income history.
But in my opinion it is a great start, and better than most it seems. Now just learn how to make the money work for you.
That said, it may be a lot for your age/history (you stated you are new to the adult world), and it may be plenty to satisfy 6 months or so of financial obligations.
How long could you live off of this? That would really answer if it is a lot or not.
Asking "is it a lot" is all relative, I answered "no", because to me it is not a lot, but to you or another person, it may be a lot. As mentioned, this being "a lot", depends on your financial obligations, and more subjectively on your age and income history.
But in my opinion it is a great start, and better than most it seems. Now just learn how to make the money work for you.
any suggestions on making money work for you? I have a 401K plan that I will be investing a very small amount in monthly but beyond that I am very interested in learning to make money work for me.
I am single with 0 obligations besides the standard middle class cost of living (rent, food, car lease/insurance). It is not for the purpose of supporting myself but rather for me to use to make a large purchase on the fly for example a car down payment or maybe I want to spend 2K to travel around the world or whatever.
I wonder what is "a lot" for me I think anything above 30K... but with spending/bills I don't think I could get there any time soon.
No,,,but everything has a beginning and that's something to be proud of,,,because your on your way. Some people never start either because they simply can't or aren't wise enough..Apparently,,you are....
Keep on trucking,one foot in front of the other and you'll always get to where you want to go........
I am pretty new to the adult world but some how I accumulated 12,000 in savings and I have no idea how much this actually is. For example i've never put a down payment on a house or purchased a car.
Originally I was thinking 20,000 would be a good amount to stay around and fluctuate at. To me 12,000 seems kind of weak in terms of burning through it in case of a complete emergency.
If by new to the adult world you mean you just turned 21, then $12K is pretty good savings to start off with.
Just make sure you keep it up throughout your adult life.
I am pretty new to the adult world but some how I accumulated 12,000 in savings and I have no idea how much this actually is. For example i've never put a down payment on a house or purchased a car.
Originally I was thinking 20,000 would be a good amount to stay around and fluctuate at. To me 12,000 seems kind of weak in terms of burning through it in case of a complete emergency.
It's a good start, as others have said. It's generally best to ask yourself "how long could I live without a paycheck"? Even if you live a very basic lifestyle, it's probably a year at most, more likely 3 or 6 months.
So, no, it's not a lot, but it's more than a lot of people have. But one thing I would definitely recommend is that you not think being "financially average" or even somewhat above it is anything to aspire to. 2/3 of Americans are either living paycheck to paycheck or are going further in debt, according to Jean Chatzky in her book The Difference. Make the decision now that you won't be one of them.
Since you're just starting out, I highly recommend this personal finance blog:
You might also like this chart which shows how long it takes to reach financial independence (i.e. work is optional if you want it to be) based on after tax savings rates:
any suggestions on making money work for you? I have a 401K plan that I will be investing a very small amount in monthly but beyond that I am very interested in learning to make money work for me.
I am single with 0 obligations besides the standard middle class cost of living (rent, food, car lease/insurance). It is not for the purpose of supporting myself but rather for me to use to make a large purchase on the fly for example a car down payment or maybe I want to spend 2K to travel around the world or whatever.
I wonder what is "a lot" for me I think anything above 30K... but with spending/bills I don't think I could get there any time soon.
Lol, yea, there are plenty of suggestions for making money work for you, just browse this forum in the investment area and just start reading; plenty of knowledgeable posters and plenty of idiots, you can learn from both. From there you can branch on out into the Internet and learn.
Part of money working for you is understanding how it works for you; is it better to pay $20k cash for a car and have no payments? Take a $20k loan at 4.49%? To help you figure this out, say that $20k you have is pulling in 8%; would you want to spend that on a car, or would you still come out ahead taking the loan? There is a reason why wealthy people still take out loans...
Figure this out, as in the how and why, and you will be on your way. Next step is understanding the numerous making your money work for you options that are out there.
A great book for beginners (there are a few) is the Investing Bible, ISBN 0-7645-5380-1, I suggest getting this as a start.
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