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Saving more....

Saving is going to be the ultimate way that I see for retirement. I am on my way to 30 years old. How much do you save and how? How much money do you think a 30 year old with 1 child should have saved? Are you on a budget? What yearly salary is your savings based on?

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Asked by MommyDimples at 4:13 PM on May. 2, 2011 in Money & Work

Level 9 (367 Credits)
Answers (6)
  • Does your employer have a 401(k) plan? Invest more than what they match. The earlier yous tart the better.

    Answer by CraftingMama at 4:16 PM on May. 2, 2011

  • A financial advisor I have says people need to save 20% of their gross income per year for retirement. We have not been able to save 20% in recent years.

    Answer by whitepeppers at 4:17 PM on May. 2, 2011

  • I put in 6% of my salary and my employer matches it. I also put in 200$ a month to another account....which is just under 6%.

    I have both taken directly out of my check. It is much easier to save if you don't see it.

    20% seems high but it makes sense. There is no way for me personally, I could afford 20% a month.

    I suggest starting w/maybe 5%. You can always adjust later. If you get a raise, put the difference in savings. You're already used to living on the lower income anyway.

    Not sure if it makes a difference, but I get paid monthly, not weekly or bi-weekly.

    Answer by cheekycherub at 4:23 PM on May. 2, 2011

  • We personally save about $4,000-$5,000/month; that equates to roughly 53% of our income. That's in addition to our 401(k)s. We've always been savers and we're able to save a lot since we never accumulated any debt, paid off our mortgage early, and (nearly) always pay cash for things (especially cars). Even when we had 2 salaries coming in, we always lived off 1 (the lesser) and we've always lived slightly below our means.

    As far as a budget, I don't actually have one, meaning I don't allot a certain amount of $ for groceries or utilities, etc. I watch every penny, only buy what is necessary, and save everything else.

    Do take advantage of any employer 401(k) plan but do NOT ever invest MORE than what they match; that excess amount could be put to better use elsewhere. Any financial advisor worth their salt will tell you the same.

    Answer by Anonymous at 7:00 AM on May. 3, 2011

  • We were really broke for a long time when we first started out and it's not too great even now yet have always been frugal. So we're not a great example on how much to save, just how to.

    If you can start early, compound interest is your friend. If you can sock away as much as you can in employee matched retirement and some good investments through someone no load like Vanguard, you'd be doing well. There are retirement calculators online. That may be your best bet to figure what your needs would be. They add up what your anticipated social security would be (assuming it's still solvent), how your pensions would pan out and figure what you'd need to maintain your current life style. Of course inflation is the wild card.

    Answer by oddfox at 9:21 AM on May. 4, 2011

  • With a TAX FREE RETIREMENT, the numbers are huge and it also includes, with the plan, Disability, life insurance, critical care and more. You should really take a look at it.

    Answer by RMott at 1:32 PM on May. 4, 2011

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