[ucla1995]

I'm in my mid-30s and the market crash tanked my savings somewhat. I'm curious as to what level of savings people around here think is normal relative to say your current salary (i.e. 1x, 3x, 20x?) I feel like I'm behind the curve on this one, because I have all my peers buying $100K cars and I'm wondering how they all do it...

tia!

[TMNT]

What kind of savings are you refering to?

Retirement fund?
Emergency fund?

I have about 3 months worth of living expenses in an emergency fund @ 27 years old. Ideally, I'd like to get that raised up to 6 months.

My retirement is lacking, granted I've only been out of college for 4 years so I'm not worried about it right now.

[chd2]

Originally Posted by ucla1995

I'm in my mid-30s and the market crash tanked my savings somewhat. I'm curious as to what level of savings people around here think is normal relative to say your current salary (i.e. 1x, 3x, 20x?) I feel like I'm behind the curve on this one, because I have all my peers buying $100K cars and I'm wondering how they all do it...

tia!

I would say in your mid 30's you should at least have enough liquid cash to cover 3 months of your liabilities tucked away...but more is always better!!! In this day and age, seems we may need more due to the job market.

I would just try to be careful, save, and don't spend beyond your means. If you can't pay cash for it(besides a car or a home), don't buy it. You will thank yourself for it later.

[silvergray545]

I think you're good dude. If you can drop 100k+ between a 535xiT and an E92 M3, I think you should be sitting pretty. If you're struggling, stop living beyond your means and drive something not as expensive.

Sorry if I came off sounding like a dick.

[ucla1995]

Originally Posted by TMNT

What kind of savings are you refering to?

Retirement fund?

Yes referring to retirement fund. I'd been thinking that maybe you need 25x salary to retire at 60 or whatever; so maybe I should be at 10x salary in retirement now or something like that?

[smack]

Not really worried about it as im military and know i have a steady paycheck. I will do my time and retire and get my retirement. Also own a house that is being rented out, so when that house is paid for i will be collecting retirement and rent when the time comes. Oh yeah 25 years old

[lambtron]

Originally Posted by smack

Not really worried about it as im military and know i have a steady paycheck. I will do my time and retire and get my retirement. Also own a house that is being rented out, so when that house is paid for i will be collecting retirement and rent when the time comes. Oh yeah 25 years old

Are you contributing to TSP man?

[E90SLAM]

Originally Posted by silvergray545

I think you're good dude. If you can drop 100k+ between a 535xiT and an E92 M3, I think you should be sitting pretty. If you're struggling, stop living beyond your means and drive something not as expensive.

Sorry if I came off sounding like a dick.

But that's the reality.

Reminded me the thread about the person who did not get BMW finance approved for his new bimmer.

[JayKay335i]

Med school stole all my money.

So dont worry, you're still ahead of the game.

I just saved up for matte black kidneys, FML.

[doc1911]

There are a lot of factors involved. There are also some good rules of thumb when it comes to saving.

Pay yourself first. You should try to save between 10-15% of your net income for long-term savings (IRA).

If you are in the stock market you can still look for the big gambles but in your 30's you need to start looking at the safer, long-term stocks and bonds as well.

Limit yourself to one credit card and pay as much off every month as you possibly can. It will make a big difference in the long run

The only thing you should take out a loan to buy is a house...........not for a car, not for a vacation........

Don't compare yourself with your friends. You don't know their financial situation or background. They might not have college loans you had. They might be paying for these $100K cars with loans they cannot afford and will be paying for 20 years.

[tuned2ride]

I suggest to monitor your net worth (all lasting assets i.e. not cars of course, less liabilities). By mid 30s, this figure should be at least 200K$ IMO (personal, not as a couple), otherwise one should stop buying Bimmers!

[TwoSaints]

I agree that if you're in your early thirties that you should have at least $100K liquid, Unfortunately things happen so you have to be secure. I just bought a house so my savings just took a hit, now about 60k is tied up in my house. Not a great feeling if you ask me. Late 30's I would be shooting for over $300k liquid.

[silvergray545]

What kind of accounts do you guys use for your retirement? Savings, CDs, investments, etc.

[jayely1]

Sorry, but can someone explain liquid to me

[samwoo2go]

Originally Posted by jayely1

Sorry, but can someone explain liquid to me

liquid is just means assets that are cash or cash like (that can convert to cash very quickly.)

Liquid assets.

Cash
Gold
Checking
Savings account
Short term CD
some type of bonds
I am sure there's more but you get the idea

[jayely1]

Ok thats what I figured. Thanks man!

[ideliver]

you should be contributing the max to your 401(k) every year...then save 10% of your take-home...then live off of the rest

[darkcloud]

Wife and I would be sitting pretty if we could stop hemoraging money on our house haha. We keep finding things we want to do or furniture to buy. We currently have our family room ripped apart. Looks to be a $3k project so far.

The spring she wants to do some major landscaping, prolly another $3k or so there.

Up side. House will be payed off in 4-5 years. We're also expecting a $70-80K profit on our house when we sell it down the road.

[BForbes]

Originally Posted by darkcloud

Wife and I would be sitting pretty if we could stop hemoraging money on our house haha. We keep finding things we want to do or furniture to buy. We currently have our family room ripped apart. Looks to be a $3k project so far.

The spring she wants to do some major landscaping, prolly another $3k or so there.

Up side. House will be payed off in 4-5 years. We're also expecting a $70-80K profit on our house when we sell it down the road.

Dont sell too soon! My parents bought a house back in 97 for 250k. It was worth over 800k in 07. They really didn't do anything out of the norm to it. Ofcourse, it's not that high now, but what do they care. It's been paid off for years and its not their primary residence. This was south FL btw. The place I bought in Central FL almost 3 years ago had a slightly opposite effect.. :-(

[txusa03]

Originally Posted by TwoSaints

I agree that if you're in your early thirties that you should have at least $100K liquid, Unfortunately things happen so you have to be secure. I just bought a house so my savings just took a hit, now about 60k is tied up in my house. Not a great feeling if you ask me. Late 30's I would be shooting for over $300k liquid.

The way I see it is if you have a MM or CD right now it is not earning you that much. And if you are fortnate to buy a home in this economy and you have some liquid, you have to ask yourself do you want to use the liquid toward a higher interest mortgage or do you want to keep your liquid in a lower interest CD? Also, if you can afford to put alot of down payment on a house, your monthly mortgage will also decrease. If everything else stay the same (salary, interest rate) then what would you do? It alls depends on how comfortable you are in your current financial situation and the economy. Congrats on the house.

Originally Posted by ideliver

you should be contributing the max to your 401(k) every year...

agreed, do this first and then see what is left in the pot and change your lifestyle to live comfortable with what is left after IRS takes their share.

[Hawkeye]

Originally Posted by dark335i

depends on your job. in my opinion (and what i will be going to school for), if i save $100k by age 30, that's amazing. by age 40, i should have $1 mill+. you should have around $300k saved up. i think if you post your job people can give you a better idea.

It's really gonna suck when reality smack you in the face at graduation... Unless you are talking about your parents dying by the time you are 40 or something...

$1 mil is a lot of money to be expecting before you are even in college. Then again, I was like that about a decade ago

I really think the OP shouldn't take investment or savings advice from high school kids!

[KingOfJericho]

Originally Posted by Hawkeye

It's really gonna suck when reality smack you in the face at graduation... Unless you are talking about your parents dying by the time you are 40 or something...

$1 mil is a lot of money to be expecting before you are even in college. Then again, I was like that about a decade ago

I really think the OP shouldn't take investment or savings advice from high school kids!

I was going to say the same thing. To go from $100k at 30 to $1M at 40 you would need to be putting almost $100k into your savings every year. Try doing that with a house and family.

Recent college grads are hilarious... when we hire them they all expect to be a VP with a corner office within 6mos.... and then there is reality. Welcome to the rat-race fuckers!