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"By 35, You Should Have Double Your Salary Saved" - Do You?
- Thread starter BWoog
- Start date
I'm at 3.75% not bad but not great. There is also the mortgage interest deduction to consider, but with the new standard deduction I will be way below that in interest. I feel like the market is due for a correction, but who knows. I've been buying more aggressively into the dip this spring. If only I had a crystal ball.
I'm 29. My salary is 60k, no bonuses. I have 7k saved, I have paid 34k out of my 35k student loan, and I have 26k in my 401k fund. I also have a few thousand in my HSA account, not sure how much though.
I actually felt pretty good about that. I just need one check to clear and I'll make my final student loan payment before I turn 30, which feels great.
There is almost no way I'll have double my salary by 35 though. I might have a little over a single salary saved. I could get double if I did a ton of freelance the next few years, but I don't really want to.
I actually felt pretty good about that. I just need one check to clear and I'll make my final student loan payment before I turn 30, which feels great.
There is almost no way I'll have double my salary by 35 though. I might have a little over a single salary saved. I could get double if I did a ton of freelance the next few years, but I don't really want to.
I have almost 1.5x my salary saved. I'll be turning 35 next year though and I doubt it'll be double by then.
Unless it's your net salary and not gross. Then I'd have double already.
Unless it's your net salary and not gross. Then I'd have double already.
Including house, pension,savings and investments - yes. Between my wife and I we probably have a bit more than twice our gross annual income. But adding on daycare for two children, education savings and other increased expenses, it is unlikely to grow at the same pace as it did pre-kids.
Bare in mind that I am 37 and my wife and I have been in our professional careers for over a decade each and our oldest child is 2. So all things considered, we likely could have been saving a lot more but tended to be to free with our expenses.
Bare in mind that I am 37 and my wife and I have been in our professional careers for over a decade each and our oldest child is 2. So all things considered, we likely could have been saving a lot more but tended to be to free with our expenses.
36. if we are counting all assets, including the house, then...maybe. depends on what value you put on the house, but its close. we would have been there easily, but my wife switched jobs and got a substantial raise, so its more of a denominator issue for us.
Sure, a house and rushing to pay it off is not always 100% the wisest financial move but there is something to be said for having a paid off house and the financial security that provides. You are no longer at the whim of the market and it is a huge piece in figuring out your retirement puzzle.
Maybe a bit, but later seems the norm these days with all the job hopping and moving. I didn't start mine until I was 28.
Having savings isn't dependant on being born into a higher class. Shit can happen in life to set you back, but it happens if you make an effort.
you benefit from the appreciation in the value of your home regardless of whether you pay off the mortgage. the value of the mortgage is fixed while the value of the house fluctuates.
7% over the very long term is a reasonable expectation, which if we are talking about "until retirement" is what we should use. dont let the last...10ish years fool you.
It's belittling to insinuate that "effort" isn't being put forth by people who can't have double their salary saved. Starting off with zero debts and a family/network that can help you find better employment out of the gate (or negate student loan bills, car payments, etc) and help a great deal with the savings train.
Regular, dependable employment is crucial for me with savings. "Effort" can only go so far when you don't have a paycheck and a job to put effort into. I've had periods of gainful employment that ended abruptly due to budget cuts and downsizing (this has happened to me twice now after having a good job for ~2 years each time). I need to pay rent & eat with something during periods of unemployment that have lasted literally years.
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Two years ago I was hovering close to twice my yearly salary. Last year though I got a condo and earlier this month I had to get a new car, so I'm lower than what I had been, though I recently got a large raise. Factoring in the raise, I'm still have more than a years worth of salary saved, and probably 1.5 compared to my old salary. I'm 29 so I can make it to 2 within 6 years given no more large expenses coming up soon.
We only talking about money saved from said salary or money saved altogether? Because if it's the latter, I got like 100 times my salary saved.
Age benchmarks are useful guidelines but not the best barometer. We're in the second longest bull market in history right now. If the market falls 30-40% in 2020 and makes it so you fall from 2x to 1.5x that doesn't mean you're "behind". Just keep maxing out your 401k, IRA, and HSA and you're retirement will be fine.
Yep. Its the luck of the draw. Folks are acting like everyone has the same job opportunities in a country where half the nation is @ or below poverty line. Clearly effort alone isn't what is making or breaking people. Seems like the economy is what the problem is.
But thats none of my business.
That's also not accounting for property taxes, maintenance, and mortgage payments over the lifetime ownership of a house. These amounts are substantial.
There is also no guarantee the property value is going to increase 7%. That is highly dependent on area. Considering what investments have provided over the last 40 years, home ownership is easily just as risky as investing in the stock market. Sometimes more.
30 year mortgages are an incredible rip off. The amount of interest paid is ridiculous. It is much better to save and invest for a significant down payment and a shorter term than to pay the minimum down payment and a long term mortgage.
The rent vs own argument will always be ongoing. Based on history I feel I would have been much richer if I had rented and saved instead of buying a home early. Investing that down payment and avoiding that debt would have accumulated significantly more wealth.
Societal pressure that home ownership is the right way to go is not always true. There is nothing wrong with renting as long as saving and investing is a significant part of the plan.
A huge part of lifetime money management is avoiding debt. A mortgage is a huge debt and should not be taken lightly. Depending on individual circumstances and area, home ownership is not always the smartest plan.
Given how much salaries vary this seems like some limited as fuck advice for a very particular population.
I was unemployed for the entirety of my 30s, so actually yes, I did have double my salary saved.
If you have these in liquid assets I think you're doing something wrong. That's money just sitting there not doing any work.
Every time you get a raise (or sizeable one), you should consider increasing the percentage you save, in particular, 401k.
Not 35 yet, but if we count both savings and retirement savings I think I'll hit that.
I'm 33 and I'm nowhere near having that saved, but I do have a house, a wonderful woman, a kid, a dog, and two cars. There's no way I'll have double my salary saved up by the time I'm 35, but I don't feel like I'm in trouble and I'm living comfortably.
I'm 33 and my wife is 29, we have three times our annual saved and more in other investments. We ate chicken noodle soup and rice every night for about 8 years to get to where we are now. No regrets.
El oh fucking el.
I make decent money but have lots of expenses especially from student loans. No way I have double my salary.
Don't even own a house yet...
I make decent money but have lots of expenses especially from student loans. No way I have double my salary.
Don't even own a house yet...
Hell no. I have just under my current salary saved and I'm 37. I couldn't afford to max out my 401k contributions, but I did up it a little more recently. My wife does. But she's worked for better companies than I have for a longer period of time.
I'm gonna need to actually get a FT job in the next 8 years to even have a shot at getting to 2x
every year, yes.
we also have investment properties, which is why i asked straight cash, no? but other areas we're doing much better than average. we're very fortunate.
Little lower after putting a sizable amount into a new home. Seems like a good goal to strive for though.