STYLETHREAD -- LET'S TALK SHOP!

lynnie · Chanel

how much do you save?

honey · Gucci

i think it depends i would probably draw the line at the point where saving interferes with reasonably enjoying life. if you can save a lot now, then you probably should, which will balance out the times when you might not be able to save as much as you'd like.

lynnie · Chanel

honey wrote:

i think it depends i would probably draw the line at the point where saving interferes with reasonably enjoying life. if you can save a lot now, then you probably should, which will balance out the times when you might not be able to save as much as you'd like.

I know- thats what I always think- life is going to get so much more expensive later- mortgage, maybe kids, maybe starting a business, maybe school again, maybe property, maybe traveling..? To the point where I'm OCD about saving. I guess I just want to see whats "normal"- my parents have freaked me out- they're like save EVERYTHING. Obv. I don't- see my weekend shopping post, but I scrimp on a lot of other things and sometimes I'll sell my whole closet on eBay for one designer piece

NCshopper · Hermes

JMO, but saving half of your take home pay is a LOT of money, and you may not be able to stick with it long term. Ideally you want to be able to keep saving over the long haul, so the trick is to find something you're comfortable with and then find a way for it to happen automatically. If you think you can save half of your paycheck, that's great, but try it for a few months first and see if that works for you.

Right now I save about 10% of my before tax earnings each month and it gets withdrawn from my bank account automatically and goes into my Roth IRA. That way I don't do it because, Lord knows, I'd find an excuse (or a GREAT pair of shoes) every month not to do it, if it were up to me.

Since you're young and you have time on your side when it comes to retirement, I'd talk to a financial planner and consult some of Suze Orman's books in order to develop some sort of plan. Suze Orman's "Young, Broke, and Fabulous" has some great advice. However, it is a one-size-fits-all kind of approach to finances, so not everything will apply to your situation, but you may find some of her advice very helpful. Some of her other books are great as well.

lynnie · Chanel

NCshopper wrote:

JMO, but saving half of your take home pay is a LOT of money, and you may not be able to stick with it long term. Ideally you want to be able to keep saving over the long haul, so the trick is to find something you're comfortable with and then find a way for it to happen automatically. If you think you can save half of your paycheck, that's great, but try it for a few months first and see if that works for you. Right now I save about 10% of my before tax earnings each month and it gets withdrawn from my bank account automatically and goes into my Roth IRA. That way I don't do it because, Lord knows, I'd find an excuse (or a GREAT pair of shoes) every month not to do it, if it were up to me. Since you're young and you have time on your side when it comes to retirement, I'd talk to a financial planner and consult some of Suze Orman's books in order to develop some sort of plan. Suze Orman's "Young, Broke, and Fabulous" has some great advice. However, it is a one-size-fits-all kind of approach to finances, so not everything will apply to your situation, but you may find some of her advice very helpful. Some of her other books are great as well.

thanks- my parents love Suze. I've seen her show on one of those financial/stock-ish channels. I'll look into that "young, broke, and fabulous" book- maybe even reading it at Borders so I don't have to buy it Haha, jk... sorta.

As for saving- the reason i CAN save 50% is because I am "young, broke, and fabulous" heh. I don't have the amt. of bills a normal person would pay and my rent is only $650 a month in NYC (brooklyn, but still). That could go up though, if I find a better location to live in. So I could still spend about $700 a month on clothes and save 50% of my income. Not that I would do that every month, but you never know.. What I'm TRYING to do, is spend my money in other ways more freely. Like think, ok, I don't HAVE to not have a second beer because its $6- wth, i'll have another beer. I don't think like that, and i kind of wish I could at times.

lsubatgirl · Gucci

Hmm I think I put in about $115/mo (3%) for my 401k plan this year only because this is my first year of being on my own and I had no clue what my bills would be. Next year it will be the full 6%. My company matches but its a tiny amount. They also have this other retirement plan that only they contribute to and I'm not sure what that amount is. As far as savings go I am being so bad right now with my spending and I think I'm only saving 25% of my pay after taxes a month (700)

I use to save 30-40% but I have bills now & better shopping. I think after christmas though I will settle down some and save more. plus it will be busy season and i won't be able to get near a mall during mall hours!!

HeatherLynn · Gucci

I do 6% in my 401k and then I put approx another $1000 to $1500 a month in savings and a roth. The rest of my money goes to my bills (living in a 2 bed/2 bath by myself) and all of my shopping and eating out.

-- Edited by HeatherLynn at 11:02, 2005-11-04

Elle · Hermes

We are saving for the wedding right now, so all of our non-retirement/SS savings goes straight to that.

Wedding: At least $1,500 per month (all extra bonuses/gifts/refunds go here too)

Retirement: 6%, 3% of which is matched by employer

SS: FH has a special SS account that is separate from the communal SS account, so another 8% goes to that (he gets to keep it all and invest it as he chooses)

Also, we are paying as much in taxes each month as we are saving for the wedding . Puts quite a dent in things so I though it was worth including .

Total savings per month: approx 35%

-- Edited by LMonet at 12:34, 2005-11-04

ILoveChoo · Hermes

I save half of what is left of my pacheck after I account for bills, rent, etc. Probably about 10% of my after tax pay.

crystal · Kate Spade

i contribute 6% of my paycheck to my 401K, 1/2 of which is matched at 100% and the other half at 50%. i also automatically deposit $50/month into a mutual fund. i try to put any excess money into ING, but i always end up needing it for something. btw, if you can save half your paycheck each month and still spend $700 on clothes, GO FOR IT!! you are living the life AND being frugal... nothing wrong w/ that! if i wasn't paying off CC's i would probably be able to (and WOULD) save half my paycheck each month.

bex · Chanel

my savings plan is this:
10% of my paycheck goes into my 401K

$50 per month goes to a Roth IRA account

$20 per paycheck (i get paid weekly) goes into my ING account

Thats how much I save!

luckylily · Gucci

I agree w/ honey. You should save as much as you can now, while still reasonably enjoying your life, because it may be harder to save later.

We save about 10% a month. I would save more if we could, but there's debt to pay off.