Personal savings

Discussion in 'Community Discussion' started by Deepdale, Jan 14, 2006.

  1. Deepdale macrumors 68000

    Deepdale

    Joined:
    May 4, 2005
    Location:
    New York
    #1
    I noticed an earlier thread entitled "Is saving money a lost art?" It contains some very interesting viewpoints, but there was a recent conversation in my office that began with someone citing statistics from a newspaper article about the very low savings rate for Americans.

    The question then turned to how much it would require for people to feel comfortable at different ages, say 30 and 50. Lifestyle, marital status and home ownership will cause a wide range of answers, but I am curious to know what people feel are amounts they would need to have to feel secure for their futures and contingencies that arise.
     
  2. Kernow macrumors 65816

    Kernow

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    Sep 30, 2005
    Location:
    Kingston-Upon-Thames
    #2
    I don't know about amounts, but as I head towards 30 :)eek: ), I have more and more started thinking about this, with the result that, for the first time ever, I have started putting away a regular amount each month.

    I would guess that this is an age related thing. In general, the younger you are, the more invulnerable you feel, and the less likely you are to save because you are having a good time at the moment and assume that everything will turn out fine. This was certainly the case for me, but as I've got older (and more mature :rolleyes: ), the more I've started considering things like this.
     
  3. iGary Guest

    iGary

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    Location:
    Randy's House
    #3
    Kind of off topic, but Bank of America just started a "keep the change" program where all of your checkcard purchased are rounded to the nearest dollar and the difference goes into savings.

    Example = I buy a .25 bag of chips. At the end of the day, B of A puts .75 into my savings account automatically.

    The best part: for the first three months, B of A matches it dollar for dollar, and after that up to 5% yearly. Great way to save.

    [​IMG]
     
  4. Blue Velvet Moderator emeritus

    Joined:
    Jul 4, 2004
    #4
    42 and have used up all my savings due to extraordinary one-off life challenges but will also be debt-free by September. Thank God I'm in a secure job with good prospects and a yearly pay review negotiated by the union, that's all I can say...
     
  5. takao macrumors 68040

    takao

    Joined:
    Dec 25, 2003
    Location:
    Dornbirn (Austria)
    #5
    personally i always grown up on the idea of "save up wirst and then buy it with the saved money" and never the "spend money you don't have"

    in fact i saved up the money for my mac over the period of 1,5 years even when i had already enough money in the bank account...

    and yeah i save exchange too i've some coin bag lying aroudn which i fill up after each purchase.. sure sometimes 15 cents aren't much but over the time it sums up to some nice amounts
     
  6. dops7107 macrumors 6502a

    dops7107

    Joined:
    Mar 19, 2005
    Location:
    Perth, Oztrailya
    #6
    That's a real deal. So for the first three months, people will be buying lots of small purchases on their cards, simply because in the long run it costs them nothing but the bank will effectively double their money? Sounds like it could cost them a lot.
     
  7. BarfBag macrumors member

    Joined:
    Dec 13, 2004
    #7
    Who says youngsters don't save? I'm 15. I work full-time in the summer, and part-time in the winter. I have a little over 2,000 dollars saved up. I don't plan on spending it, either. Out of every pay check, half goes in the account.

    I'll be honest with you guys. I was being forced to put money in the bank at first. My Dad and I got in this argument that lasted for months. We only settled it a week ago. I realize now that he's right, and that I should save my money. I'm going to start another savings account for short-term savings. Each check will go 50/50 between the two accounts. It would help me manage my money much more then just keeping savings in my desk.

    I've been tempted to spend the money as well. Look at my sig. I'm stuck with a PC. It's a decent self built PC, but it's still a PC.
     
  8. calyxman macrumors 6502a

    calyxman

    Joined:
    Apr 17, 2005
    #8
    Saving money is not a difficult thing to do. Most Americans, however, do not have time perspective for the long term and get caught up in the day to day expenditures and instant gratification.

    Altering your habits can also determine how much money you save, i.e. giving up alcohol or smoking, making lunch from home instead of eating at a restaurant, and mitigating other miscellaneous expenses.

    Ever since I've been using Quicken on my mac, I've been keeping a sharp thumb on my expenditures and, hence, watched my savings grow.

    Bottom line, saving money is a discipline. It's all up to you.
     
  9. CompUser Guest

    #9
    I am just 15.5 and have just under $3,000 in my bank account.
     
  10. iGary Guest

    iGary

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    May 26, 2004
    Location:
    Randy's House
    #10
    I like your style. From today forward till my birthday, I am 35.5.
     
  11. Deepdale thread starter macrumors 68000

    Deepdale

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    May 4, 2005
    Location:
    New York
    #11
    That is excellent for your age, whether it is from parents or odd jobs. I am way older than you and fortunately have done well for myself over the years, but at 15 my money total would have been much closer to $30.00.
     
  12. iGary Guest

    iGary

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    #12
    FYI, most people's savings is the equity in their house.

    Well, that's what they consider to be their savings.
     
  13. prostuff1 macrumors 65816

    prostuff1

    Joined:
    Jul 29, 2005
    Location:
    Don't step into the kawoosh...
    #13
    I have been taught to save my money. I am now 19 and have about $2600 between my savings account and my checking account. I also have a CD in my name that has a little over $5000 on it. That is after buying my two mac computers this summer. Also, i never got an allowence and I had to buy my own vehicle. My parents never paid for gas in my truck either, unless they were the one driving it around.

    As of right now i am not working because i am going to school full-time. I am staying with my gram so i dont have to worry about housing. Books and stuff are paid for by a tuiotion fund that my parents started when i was born, but a scholarship i recieved also help a lot.

    I have a friend whos family does not save and is in "trouble." Not really bad but they live almost paycheck to paycheck. His brother is having problems right now becasue of some of the things he bought (excessively) and now he is having trouble paying taxes. He wants to start his own business so he can use it as a tax write off :eek:. Which is totaly the wrong way to go about doing it. It is really kinda sad. I could go on but i wil leave it there.
     
  14. Deepdale thread starter macrumors 68000

    Deepdale

    Joined:
    May 4, 2005
    Location:
    New York
    #14
    Absolutely so. In the first post I forgot to mention what some younger people mentioned would make them feel secure. Most are single, childless and renters who felt that a minimum of $50,000 would be a target for them at 40.
     
  15. Johnny Rico macrumors 6502

    Joined:
    Feb 17, 2005
    #15
    It seems like a lot of young people (pre-college age) have a good amount of money saved up. I think this has to do with parents trying to instill good working and savings habits in their offspring at a fairly young age while at the same time not requiring the offspring to have any expenses of their own; its very easy to accumulate thousands of dollars when you have practically no expenses of your own other than personal entertainment. Then college occurs and the parents make the "you don't have to work while you're in school as long as your grades are up" deal. Then when the offspring graduates and finds that they have rent/mortgage, bills, food expenses, drug/alcohol/tobacco addiction left over from college, etc, etc, etc, all on top of personal entertainment expenses, they panic and take out a credit card. Forget about saving, the average youth in america is more concerned with spending as much as humanly possible all the time. Because they were taught that they can. I've seen this exact scenario play out over and over again -- upper middle class parents trying to provide a comfortable life for their offspring but end up lousing the whole thing up, manufacturing a generation of worthless consumption driven robots. Especially the girls.
     
  16. iGary Guest

    iGary

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    May 26, 2004
    Location:
    Randy's House
    #16
    Yeah, uh no.

    We have zero in savings, but that's because we used all of it getting my business started (Apple ate up a good portion of that :eek:).

    Hoping to be back on top at the end of the year. :)
     
  17. Deepdale thread starter macrumors 68000

    Deepdale

    Joined:
    May 4, 2005
    Location:
    New York
    #17
    The parental influence plays a key factor in how young people view money and save. As Kernow mentioned in post # 2, a good deal of rethinking begins to take effect as one nears 30. Once the theory of invulnerability begins to fade, a sharper eye is turned to the future and a more dedicated and disciplined approach to savings is put into effect.
     
  18. Ashapalan macrumors 6502a

    Joined:
    Apr 17, 2005
    Location:
    England
    #18
    Well, i'm about to go to uni.
    That's £3000 quid tuition fees a year
    Plus at around £4500 for accomodation + other living expenses.

    So for the three years it will last, that's £22,500 ($39858)
    Im 17, and as of yet haven't discovered any utra prener qualities so yeh, there's no way i can afford that so...

    I have to get a lone at the age of 18.
    Great huh!

    but nah, i think the degree is worth it and i have planned how to sort it all out.
     
  19. CompUser Guest

    #19
    90% of the time this is what I do. If I get money for my b-day, xmas, doing a job, etc, I'll but 1/2 in the bank. If I make like $10 doing something I usually just put it all in the bank. I never take it out once its in. I don't get an allowance either, just lots of money for holidays. If I get money from my parents on xmas or b-day, I don't put it in most of the time.

    I checked that little book thing, it says $2,876.56. In my wallet (so to speak) I have $422.

    Is it going to make a dent in college fees, probably not, Car..no, its not really that much, but it is some.

    If I go out with some friends to a movie or to get a bite to eat, my mom just gives me money. I don't buy any of my clothes, so I accumulate money fairly quickly because I don't for pay much LOL. I don't have a job either. I quit my overly easy job downloading biz directories making 7.10/hour
     
  20. iGav macrumors G3

    Joined:
    Mar 9, 2002
    #20
    You're with a union???

    Saving money was sooooooooooo much easier back in the old dot com gold rush days. :D
     
  21. Hoef macrumors 6502a

    Hoef

    Joined:
    Jul 11, 2004
    Location:
    Houston, TX..... (keep walking)
    #21
    I am mid thirties have have about a half year worth of salary in savings .... Sometimes I finance a purchase through debt if the rates are good and rather then paying off quickly I put the money in the stock market ... example: my german car is financed at 3.5% while I made little less than 20% in the market. In case of emergency my equity can cover all my debts.
     
  22. iEdd macrumors 68000

    iEdd

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    Aug 8, 2005
    Location:
    Australia
    #22
    I have about $680 (US$450). I'm 14 and I need a job...
     
  23. Blue Velvet Moderator emeritus

    Joined:
    Jul 4, 2004
    #23
    Not yet, but the union negotiates the yearly pay review and it applies equally to all employees.

    I forget their name at the moment but it's one of the clerical, white-collar ones... we're a large national charity and it's just one of those many things that they're good about.

    Edit: Now I remember (after having a senior moment)... it's Amicus.
     
  24. Abstract macrumors Penryn

    Abstract

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    Dec 27, 2002
    Location:
    Location Location Location
    #24
    Sounds about right for a lot of people.

    In my family, my mum and I never keep track of money. If I need it, she gives it to me. That's it. No strings attached. If I had a job and earned money (and I've had over 12 different jobs of all types), ALL the money went into my bank account. My mum also puts a couple of thousand dollars or so into my bank account every few months (whenever she feels like it), the amount depending on how much I still have in my account. Because of this, I really don't know what money is hers, and what money I earned.

    If I need money for going out with friends, or buying something (iPod, necessities, textbooks, etc), I use the money in my account and don't ask her at all. She lets me use my own judgement to see:
    1) If it's worth it.
    2) If I need it or would use it enough to justify the costs.
    3) Would I be irresponsible in doing so and prevent me from buying stuff that I actually need.

    I don't owe her money later, and she doesn't need to pay me back if I buy a digital camera for the family on Boxing day, necessities for the house, or a list of things she needs from the grocery store. We just don't make money a barrier in my family at all. Maybe money is handled a bit different in chinese families. Don't know. The funny thing is that I'm very good at saving money. I haven't been saving while doing my PhD, and have been relatively irresponsible with money the past 2 years, but once I graduate and start working, there's no doubt in my mind that I'll be able to go back into saving mode.

    However, I still had jobs and such because we were quite poor when I was growing up as my dad is a retard. My mum still still tried to give us everything we wanted (within reason). Even then, I didn't need to ask her if I could buy something, but I almost never bought anything because I had better judgement than that when we had no money.

    Right now, I could easily go out and buy the Nikon D50 body + wideangle lens that I want, but I haven't because even though my financial arrangement with my family can be abused quite easily (and I'm sure lots of people would growing up in my situation) and makes me very spoiled, I have also been taught to be financially responsible. Hence no Nikon D50 for me. Not now, anyway. ;)

    And yes, I spend money more liberally now, but I do get around US$20000 scholarship money every year, so meh. :cool:
     
  25. CanadaRAM macrumors G5

    CanadaRAM

    Joined:
    Oct 11, 2004
    Location:
    On the Left Coast - Victoria BC Canada
    #25
    And the reason that they so generously do this is that the Merchant who sold you the bag of chips has to pay B of A $0.15 to $0.25 per debit transaction, regardless how small (plus their rental on the machine, and their monthly service fees). So B of A encourages you to use your card for dozens and hundreds of trivial purchases to line their pockets with service fees, at the expense of those businesses who are forced to take your card or risk losing your patronage. The merchant loses money on every bag of chips bought this way.

    That's why you see merchants posting signs like "$10 minimum purchase for debit card", or adding a $0.25 service fee for debit card use, or jacking up the price of their latte by $0.25

    It's false economy, iGary - you (and I and all the other customers) will pay for it in the end. Far better to set up an automatic transfer from chequing to savings that puts in a couple hundred a month and buy your coffe with cash -- or not buy the coffee at all and save the whole amount.
     

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