When did you start seriously saving. - Page 2

runchman · 04-24-2007, 02:05 PM

Quote:

Originally Posted by CyclingInvestor

The somewhat
lower salary I got ($135k) was far outweighed by job satisfaction and lack
of stress.

I agree completely. The transition to management is really a case of diminishing returns, unless you are destined to rise to the top. And if you are destined, chances are you aren't reading this board and fantasizing about retirement.

brewer12345 · 04-24-2007, 02:10 PM

Quote:

Originally Posted by rjpatt

I have always been a saver. I cut lawns in HS and saved most of that so I had about 10k when I entered college (where I am now). I invested about half of that in some individual stocks that declined in value about 20% so I learned to mostly stick to mutual funds at a young age. Since then I have contributed to a Roth using money that my parents gave me for college, but I didn't need it due to scholarships and money from work.

Heh, I was never really a saver, but became one quickly when I realized that being behind the financial 8 balll sucked.

JustCurious · 04-24-2007, 02:27 PM

Quote:

Originally Posted by SLC Tortfeasor

I had some small, token savings through college and law school (less than $4000 total), but started seriously saving in 2002 at age 26. Net worth (including home equity) is now a little over $200K.

In order to save a lot of money, it helps to first earn a lot of money. Sometimes I spend too much time agonizing about savings and investments, and not enough time on building my career!

SLC, we have a lot in common. I started some token savings right out of law school (less than 5k) when I was 26, but then stopped when we got a house and a kid and I had law school loans to repay and a family to support on a modest salary. I started up again in earnest at about 33 (5 years ago) when the law school loans were almost paid off and our income started rising enough so that we could save and live a comfortable life. As our joint incomes continue to rise slowly but steadily, we have increased our deferred compensation.

I also sometimes spend so much time obsessing about saving and investing and asset allocation that I tend to lose focus on my job and my career. I need to be better about that.

boutros · 04-24-2007, 02:40 PM

I am not really a saver I'm just not a spender. There really isn't all that many things that I will take the initiative to go out and buy. So I do not go out to lunch, buy expensive cloths, drive a new car or buy a 60 inch plasma. So $s accumulate. Started 401k at 22 right out of college. So I guess that is when I really started.

HobbyDave · 04-24-2007, 02:42 PM

Quote:

Originally Posted by runchman

I agree completely. The transition to management is really a case of diminishing returns, unless you are destined to rise to the top. And if you are destined, chances are you aren't reading this board and fantasizing about retirement.

I do have to say that in many ways, transitioning to management is certainly a case of diminishing returns. Since I've moved into management, my salary has increased a bit above that of the engineers/architects under me, but my stress and responsibilities are much higher than previously. If something is going wrong, it's my problem. If a project is being lead off-course by some moron, it's my problem again. I never realized how many issues I just ignored that have swiftly become "my" problem to deal with.

Anyway, it's a trap as others have already mentioned. There are some interesting technical jobs out there, but I'd hate to "step down" into a lower paid technical position. Now that I've finally fought my way into management, I want to stick it out. I think I'm pretty good at it, but it does limit my movement options in some ways. And I'm most likely not going to make it to the top, so that big payday will likely never strike

HobbyDave · 04-24-2007, 02:48 PM

Quote:

Originally Posted by rw86347

When did you start saving?
How old are you?
How much do you have?

I think we (DW and I) started saving around age 22 (right at college graduation), probably putting a low percentage into our 401k's. We weren't really serious though, and the 401k's got turned off from time to time, depending on financial issues we were encountering. I'd say we got serious around age 25/26ish and set the 401ks back to maximum.

We are both 29 right now, and we have somewhere in the neighborhood of $220k combined between 401k/IRA/taxable accounts, and we have around $70k in home equity as well.

We currently max both our 401ks, and save something around $1k monthly in taxable accounts.

Nords · 04-24-2007, 02:56 PM

I was a great saver in high school because I enjoyed earning & depositing the money, although I had no clue what to do with it after I deposited it. I never had the free time (or mobility) to spend it.

During college I was much more successful at spending my high-school savings. I think it was a 4:1 ratio-- four years to earn it, one to blow it.

After college (May 1982) I had a plan-- I owed the Navy five years but they didn't particularly care how I spent it beyond the traditional first-tour requirements. I backed up the timeline from May 1987 for a submarine tour, the schools & training, and some leave to determine that I should take seven months of temporary duty before starting the nuclear pipeline. It made a lot of sense to spend that time near my spouse-to-be while she finished her college.

Unfortunately the entire Washington/Baltimore/Annapolis area was pretty expensive even back then and I was maxed out on an ensign's budget. I even chose the one-bedroom apartment without the balcony to save $10 and drop my monthly rent to $355 in a part of Alexandria had definitely not yet been subjected to the benefits of gentrification. I spent a lot of time working on my temporary-duty project, working out, reading, and anything else that was free. I only ate out or spent large chunks of money when I was with my spouse.

I was totally oblivious to the personal-computer revolution and the bottoming out of the stock market. But I was able to save $50 from every biweekly paycheck. I still didn't have any idea what to do with it, although in 1982 it wasn't hard to find a checking account paying 10% interest...

The whole concept of LBYM, saving, investing, & asset allocation didn't really get organized until four years later when we were married and on shore duty with the time to do the research & make the decisions. I doubt that would have happened if we hadn't married.

jIMOh · 04-24-2007, 03:05 PM

Quote:

Originally Posted by rw86347

I was in college for 7 years. Durring that time I did save, but only $20-$50 per month. When I turned 27 I started putting away $10,000/yr. Today I am 34, and put away $23,000/yr, and have $184,000 saved.

I wish I had started puting serious $$$ away at 22. After reading "Millionair Next Door" I realized that I am not as far as others my age simply because I got serious about saving 5 years too late. Thanks to college.

When did you start saving?
How old are you?
How much do you have?

Did any of you start seriously saving $$$ at 20 or 22?

34 yo (started at 24), and have about $135k in tax favored accounts (401k and Roth). I also have home equity.

OKLibrarian · 04-24-2007, 03:45 PM

Always been a saver, though most of my money in high school went to long-term goals like trips/computer for college. through college I saved enough to pay about 30% cash for my first car. saved a LOT through my early 20s during my telecom stint, but it pretty much all went back out the door on frivolities like food and shelter when I got laid off, aside from about 20K in misc. retirement accounts. the next three years when I was working the welfare office we couldn't do much more than live paycheck to paycheck and keep the emergency fund (barely) topped up. We've only had excess income for about a year and a half, and we've been squirreling away every penny. I feel a lot like a late bloomer on this front compared to many of you because of those early setbacks (we're 30/31 and only have about $50K net worth), but we're going to keep living like college students (aside from owning a house) for as long as we can put up with it to try to catch up. fortunately we're not big spenders, as long as we stay out of Borders and the comic shop respectively.

runchman · 04-24-2007, 03:56 PM

I can remember as a little kid, maybe 9 or so, I had these little cardboard booklet-like things that you shoved your dimes or quarters into a slot, and next to the coin it showed what your total was.

I also remember being very upset when I learned that my mom had sent money to the bank that I had saved up and given her to deposit. Thought that she had sent it away and I'd never see it again!

So I guess I had a pretty early introduction to savings. I remember my little passbook thing that we'd send in with our deposit, and it would come back stamped with my new balance.

Guess it's time for me to get my 11-year old daughter started....

- John

aaronc879 · 04-24-2007, 04:03 PM

I started contributing 10% to my 401K as soon as I was eligible at age 20. At age 23 I added a fully funded roth IRA. Then at age 24 I started to max both 401K and Roth. I only make 45K/year so there's very little left after that for taxable accounts. Maybe some day?

SLC Tortfeasor · 04-24-2007, 04:12 PM

Quote:

Originally Posted by JustCurious

I also sometimes spend so much time obsessing about saving and investing and asset allocation that I tend to lose focus on my job and my career. I need to be better about that.

I know that you and I are not the only ones with this problem. Maybe there should be a thread or maybe a whole section of threads dedicated to the theme of how to focus on working hard right here, right now, rather than daydreaming about 15 years from now.

Today, in particular, I could use a support group!

justin · 04-24-2007, 04:37 PM

Quote:

Originally Posted by SLC Tortfeasor

Today, in particular, I could use a support group!

Like an internet-based support group for internet addicts?

SLC Tortfeasor · 04-24-2007, 06:37 PM

That would

Quote:

Originally Posted by justin

Like an internet-based support group for internet addicts?

Yes, that would be ideal! I would definitely participate in all the online meetings!

trixs · 04-24-2007, 07:25 PM

Well lets see..

Started out when I was 16 years old with $1000 that I earned washing dishes. Promptly lost all of it on some company that died during the bust. Joined the military and had no idea what to do with the meager paycheck they present me with. Started playing with random trading and eventually just ended up buying value stocks that are depressed..

Currently 25 with about 120k invested on an E5 salary lol.. Talk about not having anyone to contemplate investing with!

-trixs

clifp · 04-24-2007, 09:10 PM

Probably about 15 or 16. I took some of money I earned plus my grandparent;s generous gifts and bought 3 Chrysler bonds for about $2,500 that were going to mature when I was a junior in college. I remember the yield to maturity (I don't think I knew the fancy term back then ) was more than 10%.
Unfortunately, Chryslers business went from bad to worse shortly after I bought the bonds. The broker said he thought Chrysler would pay back the bonds, and Lee Iacocca was becoming very popular, so I held on.

My serious savings didn't start until right after college, but by 24 I had Schwab account, an IRA, 401K, and house with 13% mortgage.

dmpi · 04-24-2007, 10:22 PM

I was 24 when I got my first real job. I lived at my Parents house for a few more years. With no rent it was a lot eaiser to save.

Calgary_Girl · 04-24-2007, 11:15 PM

I guess I've always been a saver....even as a little kid I enjoyed rolling coins and going to the bank to deposit my change :P

I opened an RRSP (similar to a Roth) when I was 19 and have always tried to contribute the max. to my RRSP and my company's pension plan. Luckily, DH has always been a saver too since he was raised by a single mother and they didn't have much money.

Today, our net worth is slightly over $1.25 million. We have zero debt and own our home free and clear...I'm 34 and DH is 37.

Retireinmy40s · 04-24-2007, 11:53 PM

Had a little bit in my early 20's but really started at age 25 bought a new house and met with an advisor and started saving about 10-15% of my income. Too busy having fun up until 25 and then decided it was time to get on track. Now age 33 with about 170K (home equity included).

YVR-Terri · 04-25-2007, 02:21 AM

At my parent's strong recommedation, started maxing out retirement accounts as soon as I was eligible (15 y.o.) and when I moved out and had other expenses, I still kept putting in about 10% every year. When my income spiked a couple of years ago (up 60% in one year) I maxed out again and started investing in non-retirement accounts as well. I'm 28 now and just hit the 100K mark across both accounts in March.

It's funny that so many are opposed to management positions, I actually am in project management and like it a lot better than anything else someone will pay me to do. Part of the appeal is that if it's my problem, I have the ability to fix it, rather than relying on some (other) incompetent manager to address the problem. Plus if/when I get bored I can move as soon as the project is over without the stigma of "job-hopping". Longest I've ever stayed in one job is 3 years, and one of the reasons I left is that it was shifting from a project based role to a more operational role that I wasn't interested in doing.

04-24-2007, 02:40 PM	#24
boutros Recycles dryer sheets Join Date: Jul 2005 Posts: 108	Re: When did you start seriously saving. I am not really a saver I'm just not a spender. There really isn't all that many things that I will take the initiative to go out and buy. So I do not go out to lunch, buy expensive cloths, drive a new car or buy a 60 inch plasma. So $s accumulate. Started 401k at 22 right out of college. So I guess that is when I really started.

04-24-2007, 02:56 PM	#27
Nords Moderator Emeritus Join Date: Feb 2004 Location: Oahu Posts: 15,666	Re: When did you start seriously saving. I was a great saver in high school because I enjoyed earning & depositing the money, although I had no clue what to do with it after I deposited it. I never had the free time (or mobility) to spend it. During college I was much more successful at spending my high-school savings. I think it was a 4:1 ratio-- four years to earn it, one to blow it. After college (May 1982) I had a plan-- I owed the Navy five years but they didn't particularly care how I spent it beyond the traditional first-tour requirements. I backed up the timeline from May 1987 for a submarine tour, the schools & training, and some leave to determine that I should take seven months of temporary duty before starting the nuclear pipeline. It made a lot of sense to spend that time near my spouse-to-be while she finished her college. Unfortunately the entire Washington/Baltimore/Annapolis area was pretty expensive even back then and I was maxed out on an ensign's budget. I even chose the one-bedroom apartment without the balcony to save $10 and drop my monthly rent to $355 in a part of Alexandria had definitely not yet been subjected to the benefits of gentrification. I spent a lot of time working on my temporary-duty project, working out, reading, and anything else that was free. I only ate out or spent large chunks of money when I was with my spouse. I was totally oblivious to the personal-computer revolution and the bottoming out of the stock market. But I was able to save $50 from every biweekly paycheck. I still didn't have any idea what to do with it, although in 1982 it wasn't hard to find a checking account paying 10% interest... The whole concept of LBYM, saving, investing, & asset allocation didn't really get organized until four years later when we were married and on shore duty with the time to do the research & make the decisions. I doubt that would have happened if we hadn't married. __________________ * * For more info see "About Me" in my profile.

04-24-2007, 03:45 PM	#29
OKLibrarian Recycles dryer sheets Join Date: Mar 2007 Posts: 211	Re: When did you start seriously saving. Always been a saver, though most of my money in high school went to long-term goals like trips/computer for college. through college I saved enough to pay about 30% cash for my first car. saved a LOT through my early 20s during my telecom stint, but it pretty much all went back out the door on frivolities like food and shelter when I got laid off, aside from about 20K in misc. retirement accounts. the next three years when I was working the welfare office we couldn't do much more than live paycheck to paycheck and keep the emergency fund (barely) topped up. We've only had excess income for about a year and a half, and we've been squirreling away every penny. I feel a lot like a late bloomer on this front compared to many of you because of those early setbacks (we're 30/31 and only have about $50K net worth), but we're going to keep living like college students (aside from owning a house) for as long as we can put up with it to try to catch up. fortunately we're not big spenders, as long as we stay out of Borders and the comic shop respectively.

04-24-2007, 03:56 PM	#30
runchman Recycles dryer sheets Join Date: Jun 2005 Posts: 284	Re: When did you start seriously saving. I can remember as a little kid, maybe 9 or so, I had these little cardboard booklet-like things that you shoved your dimes or quarters into a slot, and next to the coin it showed what your total was. I also remember being very upset when I learned that my mom had sent money to the bank that I had saved up and given her to deposit. Thought that she had sent it away and I'd never see it again! So I guess I had a pretty early introduction to savings. I remember my little passbook thing that we'd send in with our deposit, and it would come back stamped with my new balance. Guess it's time for me to get my 11-year old daughter started.... - John

04-24-2007, 04:03 PM	#31
aaronc879 Recycles dryer sheets Join Date: Jan 2006 Posts: 313	Re: When did you start seriously saving. I started contributing 10% to my 401K as soon as I was eligible at age 20. At age 23 I added a fully funded roth IRA. Then at age 24 I started to max both 401K and Roth. I only make 45K/year so there's very little left after that for taxable accounts. Maybe some day?

04-24-2007, 07:25 PM	#35
trixs Recycles dryer sheets Join Date: Nov 2005 Posts: 108	Re: When did you start seriously saving. Well lets see.. Started out when I was 16 years old with $1000 that I earned washing dishes. Promptly lost all of it on some company that died during the bust. Joined the military and had no idea what to do with the meager paycheck they present me with. Started playing with random trading and eventually just ended up buying value stocks that are depressed.. Currently 25 with about 120k invested on an E5 salary lol.. Talk about not having anyone to contemplate investing with! -trixs __________________ How to Invest

04-24-2007, 09:10 PM	#36
clifp Thinks s/he gets paid by the post Join Date: Oct 2006 Posts: 2,138	Re: When did you start seriously saving. Probably about 15 or 16. I took some of money I earned plus my grandparent;s generous gifts and bought 3 Chrysler bonds for about $2,500 that were going to mature when I was a junior in college. I remember the yield to maturity (I don't think I knew the fancy term back then ) was more than 10%. Unfortunately, Chryslers business went from bad to worse shortly after I bought the bonds. The broker said he thought Chrysler would pay back the bonds, and Lee Iacocca was becoming very popular, so I held on. My serious savings didn't start until right after college, but by 24 I had Schwab account, an IRA, 401K, and house with 13% mortgage.

04-24-2007, 10:22 PM	#37
dmpi Recycles dryer sheets Join Date: May 2006 Posts: 366	Re: When did you start seriously saving. I was 24 when I got my first real job. I lived at my Parents house for a few more years. With no rent it was a lot eaiser to save.

04-24-2007, 11:15 PM	#38
Calgary_Girl Full time employment: Posting here. Join Date: Jun 2004 Posts: 517	Re: When did you start seriously saving. I guess I've always been a saver....even as a little kid I enjoyed rolling coins and going to the bank to deposit my change :P I opened an RRSP (similar to a Roth) when I was 19 and have always tried to contribute the max. to my RRSP and my company's pension plan. Luckily, DH has always been a saver too since he was raised by a single mother and they didn't have much money. Today, our net worth is slightly over $1.25 million. We have zero debt and own our home free and clear...I'm 34 and DH is 37. __________________ I can only be nice to one person today! Today is not your day...tomorrow doesn't look good either.

04-24-2007, 11:53 PM	#39
Retireinmy40s Dryer sheet aficionado Join Date: Jun 2006 Posts: 41	Re: When did you start seriously saving. Had a little bit in my early 20's but really started at age 25 bought a new house and met with an advisor and started saving about 10-15% of my income. Too busy having fun up until 25 and then decided it was time to get on track. Now age 33 with about 170K (home equity included).

04-25-2007, 02:21 AM	#40
YVR-Terri Dryer sheet wannabe Join Date: Mar 2007 Posts: 20	Re: When did you start seriously saving. At my parent's strong recommedation, started maxing out retirement accounts as soon as I was eligible (15 y.o.) and when I moved out and had other expenses, I still kept putting in about 10% every year. When my income spiked a couple of years ago (up 60% in one year) I maxed out again and started investing in non-retirement accounts as well. I'm 28 now and just hit the 100K mark across both accounts in March. It's funny that so many are opposed to management positions, I actually am in project management and like it a lot better than anything else someone will pay me to do. Part of the appeal is that if it's my problem, I have the ability to fix it, rather than relying on some (other) incompetent manager to address the problem. Plus if/when I get bored I can move as soon as the project is over without the stigma of "job-hopping". Longest I've ever stayed in one job is 3 years, and one of the reasons I left is that it was shifting from a project based role to a more operational role that I wasn't interested in doing.