the first $200K is the hardest to save???

[Caroline]

As I think about it, I think it gets easier to save more as you go along because more money give you more FLEXIBILITY to take advantage of various opportunites.

After I maxed out my 401k, etc. for the year, I had money left over and invested in rental property in Northern California. This was a BIG contributor to my net worth, and one I couldn't have managed if I hadn't saved a down-payment.

The ability to take out 15-year instead of 30-year mortgages is another benefit -- one I wouldn't have had the nerve to undertake without a big emergency fund, given my high-tech, high-risk job.

I'm sure there are bigger and better opportunities out there... these little decisions of mine are only a couple of examples of how I think having savings generates MORE savings.

Caroline

[runchman]

To the original poster, another way to consider it is to project yourself forward to, say, when you are 41 like me. Sounds a very far way off if you're 24 right? Well once you *do* hit 41, believe me, looking back, 24 will seem like just yesterday.

I started in engineering with a decent salary, and contributed 10% to the 401(k) from day one. Married another engineer along the way, which didn't hurt. I've gone from:

college graduation $12,500 debt $0 Assets

To

Now cash savings around $600k

My point (is there one?) being, get in the habit of squirreling away cash, and before you know it you'll be seeing the light at the end of the tunnel. It's like you're finally coming up to the crest of this big hill that you've been riding up for so long, and man is it exciting to think about reaching the top and going into coasting mode, having your investments sustain you.

Ok so it's late, I'm rambling. Plug away at that savings, you won't regret it.

- John