Finally, A Job!

[Celery]

My life is fine, just that the future is uncertain the way things are going..

 

[strollin]

Look at what happens when you save up just 75 cents for every dollar you earn

What I want to know is who can afford to save 75 cents out of every dollar earned? That means saving 75% of your earnings and living off just 25%. Heck, I don't even take home 75% of what I earn let alone have the ability to save that.

I'm guessing it's a typo and you meant to say "Look at what happens when you save up just 75 cents for every hour you work."

There are lots of other advantages to putting money away into a 401k (this is a US only thing). The money you put into a 401k is not taxed so (depending on your tax situation) it may only cost you 50 cents out of your pocket to put 75 cents into your 401k as that additional 25 cents might have gone to taxes. Many employers also match contributions. If your employer matched 50 cents on the dollar, that means you put 75 cents in, employer puts in 37 cents so you have actually put $1.12 away in savings and it only cost you 50 cents!

You younger guys are lucky that you have 401k plans available at such an early age. I was already in my 30s before the 401k was created. In the case of saving for retirement, the earlier you start, the longer you can save. Time is on your side.

 

[dude_56013]

What I want to know is who can afford to save 75 cents out of every dollar earned? That means saving 75% of your earnings and living off just 25%. Heck, I don't even take home 75% of what I earn let alone have the ability to save that.

Actually ROFL'd (okay, didn't actually roll on the floor, sorry!). You are correct, that was a typo. I was meaning to say something like "10 cents on the dollar" (meaning 10% of your income), but I did the math and then added the percent. Oops. ...it's been a long day, forgive me!

 

[Craig Prince]

Thanks everyone! These are my current plans. Every paycheck I'll get 10% is for spending money, another 10% is for saving up, and the last 80% is money going towards building a PC.

Tell me what you think.

 

[jmacavali]

Once you build your PC, then are you planning to put away 90%? That would be the way to do it.

 

[Craig Prince]

I was actually thinking of putting 75% away for savings. That would still add up to be A LOT of money for me. Tell me what you think of that.

 

[jmacavali]

Its hard to know how much that is without asking what you make and what your bills and stuff are.

 

[Craig Prince]

I obviously still live with my parents, and I don't normally pay for gas and food. So no rent or bills.

 

[Celery]

Don't write that off so quick. What if your parents decide you pay your room and board?

 

[jmacavali]

I saw something the other day on one of the money shows that if you save $X amount (I forget the exact number) from the time you are 22, you'll have 1 million saved when you retire. If you start at 32 with the same amount you will only have $300,000. The point being, the more you can save now - especially with having nothing to pay for - the more you will have when you retire.

Sent from my SM-G900V using Computer Forums mobile app