Comments on: How much savings should you have at age 25, 35, and 45? http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sat, 21 Nov 2009 06:31:52 -0800 http://wordpress.org/?v=abc hourly 1 By: Bob http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-100331 Bob Thu, 04 Jun 2009 01:46:55 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-100331 You don't have to "buy into the commercial system" to recognize and understand it's power over everyday life and plan for the future. Maybe you can be happy living only in today, but most people need some sense of security about tomorrow. Proper financial planning can provide that sense of security, but then I guess so can good drugs, religion, self-delusion, etc. You don’t have to “buy into the commercial system” to recognize and understand it’s power over everyday life and plan for the future. Maybe you can be happy living only in today, but most people need some sense of security about tomorrow. Proper financial planning can provide that sense of security, but then I guess so can good drugs, religion, self-delusion, etc.

]]> By: mmoose http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-95738 mmoose Tue, 21 Apr 2009 19:36:31 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-95738 Live for the day brothers / sisters dont buy in to he commerical system, that why we are where we are!!! have enough to be happy, after all happiness is what life is about not pension funds. Live for the day brothers / sisters dont buy in to he commerical system, that why we are where we are!!! have enough to be happy, after all happiness is what life is about not pension funds.

]]> By: Josie http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-34860 Josie Sat, 29 Sep 2007 19:37:21 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-34860 >> This is crap...my husband and I both make a good living and have 1 child. Using the formula, we should have $500,000 saved ($188k + $312k) at our ripe old age of 35. Where I live, a nice 2500sf 4bdrm home costs $200k and a "good" salary for an individual is $50k. You do the math but there's no way anyone our age with our incomes could have that much saved already and not live in a cardboard box. >>

This is crap…my husband and I both make a good living and have 1 child. Using the formula, we should have $500,000 saved ($188k + $312k) at our ripe old age of 35. Where I live, a nice 2500sf 4bdrm home costs $200k and a “good” salary for an individual is $50k. You do the math but there’s no way anyone our age with our incomes could have that much saved already and not live in a cardboard box.

]]> By: Jake http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3464 Jake Thu, 07 Dec 2006 02:59:07 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3464 While I like comparing my situation to others every now and then, it seems that the most important measure of whether someone is on track with their net worth is whether they have identified the number they'll need at some point in their future (most often retirement) and then calculate that back to see what they will have had to amass at any particular age. While I like comparing my situation to others every now and then, it seems that the most important measure of whether someone is on track with their net worth is whether they have identified the number they’ll need at some point in their future (most often retirement) and then calculate that back to see what they will have had to amass at any particular age.

]]> By: Nate http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3463 Nate Tue, 28 Nov 2006 21:11:13 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3463 Sure, benchmarks are nice, but you have to look at the bigger picture - "What do you want out of your life?" Punching numbers into calculators can give you a figure, but what does that figure mean? Do you want to retire at 40, 50, 60? Do you want to travel, do you want to buy a bigger house, or move into a smaller house. In general, you need to determine what kind of lifestyle you want to live. Forget "keeping up with the Jonses," instead assess what YOU want out of life. From there you work backwards using the formulas that are available to come up with a figure so that you can start planning out how much you will invest for your retirement on a monthly basis. Sure, benchmarks are nice, but you have to look at the bigger picture – “What do you want out of your life?”

Punching numbers into calculators can give you a figure, but what does that figure mean? Do you want to retire at 40, 50, 60? Do you want to travel, do you want to buy a bigger house, or move into a smaller house. In general, you need to determine what kind of lifestyle you want to live. Forget “keeping up with the Jonses,” instead assess what YOU want out of life. From there you work backwards using the formulas that are available to come up with a figure so that you can start planning out how much you will invest for your retirement on a monthly basis.

]]> By: Mangia http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3462 Mangia Sun, 19 Nov 2006 19:12:43 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3462 "Most people don't know what they're doing" -- precisely the reason for various benchmarks and comparisons. The more you don't want to work when you're 'old', the more planning you will do to escape early. What financial freedom essentially provides is choice. You can choose to be generous in your giving, choose to vacation with your family, and choose the lifestyle which suits you. I don't this all this necessarily means gucci/prada/porsche. But it does mean living below your means and saving while you're 'young.' Nice Blog. “Most people don’t know what they’re doing” — precisely the reason for various benchmarks and comparisons. The more you don’t want to work when you’re ‘old’, the more planning you will do to escape early. What financial freedom essentially provides is choice. You can choose to be generous in your giving, choose to vacation with your family, and choose the lifestyle which suits you. I don’t this all this necessarily means gucci/prada/porsche. But it does mean living below your means and saving while you’re ‘young.’ Nice Blog.

]]> By: Enrique http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3461 Enrique Fri, 17 Nov 2006 19:45:48 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3461 To Alexandra on response on number 2. The website at cnn has some great calculators on how long it will take you and your husband to become a millionarie if you save and invest. If you go to www.cnn.com, clink on theBusiness section, then click on Real Estate, you will find a heading for calculators. They are all fun to play with. Of course, if you had started with Google as a private company, you will a multimillionarie by now. To Alexandra on response on number 2.

The website at cnn has some great calculators on how long it will take you and your husband to become a millionarie if you save and invest.

If you go to http://www.cnn.com, clink on theBusiness section, then click on Real Estate, you will find a heading for calculators.

They are all fun to play with.

Of course, if you had started with Google as a private company, you will a multimillionarie by now.

]]> By: debt-free http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3460 debt-free Wed, 15 Nov 2006 20:32:52 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3460 "but looking at your overall net worth, and factoring it for your age takes into account both your income minus expenses and also the amount of time you may have been in the workforce" Lets clarify here. Income minus expenses is <i>not</i> the same as own minus owe. Own: add up everything you own - house, cars, cash, items of value. Owe: add up all of your debts - mortgage, car loans, student loans, personal loans, 2nd mortgage, credit card debts... you get it. Now subtract the two. Thats it. Done. Income and expenses are not in there. Time in the workforce doesn't matter, and neither does what your broke neighbor is doing. The MND method for reviewing your expected net worth is fine, but thats not a substitution for the actual calculation. “but looking at your overall net worth, and factoring it for your age takes into account both your income minus expenses and also the amount of time you may have been in the workforce”

Lets clarify here. Income minus expenses is not the same as own minus owe. Own: add up everything you own – house, cars, cash, items of value. Owe: add up all of your debts – mortgage, car loans, student loans, personal loans, 2nd mortgage, credit card debts… you get it. Now subtract the two. Thats it. Done. Income and expenses are not in there. Time in the workforce doesn’t matter, and neither does what your broke neighbor is doing. The MND method for reviewing your expected net worth is fine, but thats not a substitution for the actual calculation.

]]> By: Transcendental Success http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3459 Transcendental Success Wed, 15 Nov 2006 14:06:25 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3459 The amount of time you have been in the workforce has no bearing on your savings or investment requirements -- although certainly it has bearing on your ability to save. <br /> Design your ideal world. Your expenses in that world tell you exactly how much income you need from all sources. Depending what you are doing in that world tells you how much you need to be paid by your job or if you don't have one, how much you need to be making from your investments. Work backwards from there until today and you can measure yourself.<br /> Measuring yourself against all the other morons in the world just makes a mediocre person feel good. The amount of time you have been in the workforce has no bearing on your savings or investment requirements — although certainly it has bearing on your ability to save.

Design your ideal world. Your expenses in that world tell you exactly how much income you need from all sources. Depending what you are doing in that world tells you how much you need to be paid by your job or if you don’t have one, how much you need to be making from your investments. Work backwards from there until today and you can measure yourself.
Measuring yourself against all the other morons in the world just makes a mediocre person feel good.

]]> By: NLG http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45/comment-page-1/#comment-3458 NLG Tue, 14 Nov 2006 22:19:46 +0000 http://www.iwillteachyoutoberich.com/blog/how-much-savings-should-you-have-at-age-25-35-and-45#comment-3458 I disagree, I don't think it makes any sense to base it on your expenses. Obviously you need to keep those low, but looking at your overall net worth, and factoring it for your age takes into account both your income minus expenses and also the amount of time you may have been in the workforce (though by a very rough estimate). But, the point is that it takes the value of compounding over time into account. I disagree, I don’t think it makes any sense to base it on your expenses. Obviously you need to keep those low, but looking at your overall net worth, and factoring it for your age takes into account both your income minus expenses and also the amount of time you may have been in the workforce (though by a very rough estimate). But, the point is that it takes the value of compounding over time into account.

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