76% of Americans Are Living Paycheck-to-Paycheck
- Thread starter Capt Worley PE
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Capt Worley PE
Run silent, run deep
^Staying home with the mother, I'd guess. That's a full time job in itself.
I think it's silly for someone like me to keep 6 months of expenses in a savings account. With inflation, savings accounts have a negative return right now. I do have some money in a brokerage account I could get to quickly if I needed to.
Capt Worley PE
Run silent, run deep
^You could also lose a good percentage of it at a shot, and you'd (not you in particular, but folks in general) be likely to raid the fund for a silly impulse purchanse.
Everything is a tradeoff. Your approach is better for the disciplined.
Everything is a tradeoff. Your approach is better for the disciplined.
At 30 years old, I don't think we should have a huge savings account. I see us as still in the building and paying off debt stage.
As long as job security is good anyway...
As long as job security is good anyway...
csb
Well-known member
What's this "job security" you speak of?
Sometimes I think we are getting ahead, but then we have to get a new AC, or new roof, or pay deductibles because Tex Jr. broke another bone and needs surgery...Then we start over.
We don't use credit, and I put money into our retirement funds every paycheck, but I does seem pretty hard to build up as much savings as I think we need for a cushion and maintain it.
We don't use credit, and I put money into our retirement funds every paycheck, but I does seem pretty hard to build up as much savings as I think we need for a cushion and maintain it.
Dexman PE PMP
Internationally PMP'n his PE-ness
I'm in the 75% too, but I know full well I'm there by choice. I don't NEED the car I drive, or the large house, and even the fact I have kids was a choice Mrs Dex and I made. My wife chose to go back to school to get a 2nd degree (her 1st degree was essentially useless).
I don't ever think we've ever considered ourselves in a position where we're "getting ahead".
I don't ever think we've ever considered ourselves in a position where we're "getting ahead".
Capt Worley PE
Run silent, run deep
Only a 1% raise since 2007 is beginning to catch up with me. Started grocery shopping at Walmart this year to make up for the 2% increase in payroll taxes and insurance increases.
Don't buy new books from Amazon anymore and wait for the to get down to a penny or so before I pull the trigger with the Amazon resellers.
Don't buy new books from Amazon anymore and wait for the to get down to a penny or so before I pull the trigger with the Amazon resellers.
wilheldp_PE
PE, LEED AP, SPAM KING
You'll be able to get ahead in 2014 when health care finally becomes "Affordable."
This is us too. My husband and I recently got enormous raises from promotions and changing jobs. We thought we'd be able to save up for a new car over the next few months before Baby YMZ starts preschool in the fall, but sh!t keeps happening and we lose the extra income.
On the other hand, we're contributing the max to our retirement funds and a few thousand each year to college savings for the kids, so I think we're doing okay in the big picture.
G
Guest
Us too. I'll be changing jobs soon, the wife wants to go back to school, and we just found out there'll be another little one in January. We haven't taken from our savings since April but i'm sure this will change soon.
We are not pinching pennies, have some toys that I never had as a child, and overall feel pretty good about our finances.
I can appreciate those that decide not to have kids. Afterall, Christmas time is great when the aunt and uncle show up to open gifts with all their nieces and nephews...
Capt Worley PE
Run silent, run deep
Pimpin' ain't easy.
Ble_PE
I need a beer.
I guess I'm not in the 26% either, but we do have a decent amount saved up for emergencies. I'd say that we have enough to last around 4 months or so. But we are definitely not living paycheck-to-paycheck. I max out the wife and my Roth IRAs and then put about 7% into my work 401k. On top of that, we save a decent amount each year for the kids college funds, so I feel like we're doing pretty good considering we're doing all of this on my salary. The mrs. stays at home with the kids and will continue to do so at least until the youngest is in school full time. Once she goes back to work we'll start saving more.
Road Guy
Well-known member
I keep around $10K that I can get to in a hurry (money market account) I put the rest of everything else pre tax in 401K's and such and figure if I ever really need the money I will just tap into that and take the tax hit...
I have been doing 15-20% of the salary since I started working full time in 1998.. it had grown to a respectable number, I try and not look at it. I am sure Obama looks at it though and wants to find a way to tax it just for sitting there..
I dont personally see the need to keep $50,000 in checking to be honest...someone write down where MP and I agree
I have been doing 15-20% of the salary since I started working full time in 1998.. it had grown to a respectable number, I try and not look at it. I am sure Obama looks at it though and wants to find a way to tax it just for sitting there..
I dont personally see the need to keep $50,000 in checking to be honest...someone write down where MP and I agree
EM_PS
shining like a lighter...
Yeah, we're def not living paycheck to paycheck, but nor do we have 6 mo. (or even 3 mo.) salary in savings. We both contribute to 401s, are insured to the hilt, & my wife has stock options available once per year which we usually cash in for large chunk debt reduction & for vacay's.
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knight1fox3
Jedi MASTER & Friend of Capt. Solo
Savings can be achieved on almost any income level. It just takes some discipline. I've made reference to it before, but following most of the guidelines in Dave Ramsey's "Financial Peace", a lot is possible. Following his models, we were debt free before we bought our first home. Granted we were behind most of our friends who had bought homes 5 years or so prior to us, but we were able to eliminate our debt. Kids can go the same way if planned accordingly. A good base savings can make it so there is virtually no impact to regular spending habits. I have friends who bought homes and had kids all in the same year. Hard to get ahead that way. Financial Peace also talks about having 6 months worth of expenses saved up (or emergency fund), which we also have.
Just my 2 cents.
Just my 2 cents.
