The plan is to max out the 401k plus my employers 10% match (15k), 2 Roth IRAs and HSA while also paying down my mortgage and extra 20k. It certainly helps that i have an extra 30k bonus coming in March that finally has vested after 3 years!
Great goals! I would suggest thinking about swapping the numbers though so that house fund gets $1000. Although real estate may be cooling off, home values have been rising at a rate that $500/month might not get you there
I think you should plan on 10-11 months of income when budgeting. There are always additional expenses at the end of the year: insurance, subscriptions, presents, charitable donations, travel. When I lived in France, companies often would give a "13th month" bonus to help with those expenses. Now that's disappearing.
We create an annual budget and divide by 12. Then we do everything in our power to spend less than the budget. We succeed if we end up spending less than planned.
This week was interesting for me. I was able to sit down with a retirement planner available to me through my deferred compensation plan. He was able to show me for the first time that I can retire at age 60 in two years and will be fine. My wife and I saved diligently and while she is only 56, we can both afford to retire at the same time. But that's where things get funny, it's anxiety provoking for me and then there is the thought that if I continue to work, I can continue to pound away cash. As much as I like my numbers, they could still be better. So now I am thinking, 61 that's the new age. We'll see, but I am finally feeling good about things.
I made it a point to shift my thinking from accumulating 'STUFF" to accumulating "EXPERIENCES.' As such, I ended up booking two trips; one of which is in Europe. As a result, I've been extremely aggressive this past year, roughly 30%. The balances are looking good. But once these trips are completely saved for, then I'll pull back. I've experienced opportunity costs big time as a result.
Great video. Erin does a great job at presenting a lot of information in a well-articulated manner. I particularly liked the part of increasing one's income as a means for saving more. Many people do not even consider that as a possibility in my experience. I'm a proponent of saving a minimum of 20% of gross income each year, if at all possible. I am futurate to be in a position that will likely allow me to save more than that next year.
The best financial hack is to make a personal promise that you will be disciplined to work 40+ hours a week in some form of skilled labor until you're savings/index funds can begin to make significant gains. Somewhere along the line we've lost that. Dave "8% withdraw rate" Ramsey is right on this one. Your #1 wealth building tool is your income- at least for the first half of your life. Thanks for the show!
Our goal is to max out my 401k, max out both our IRAs, sign up for the HSA for next year (missed it for this year) and take advantage of those savings next year, and open a joint brokerage account to save as much as we can there - probably $800 a month or so, but we'll see. I'm excited for the HSA situation next year, I think it'll be close to a wash with how much we pay for our health insurance currently. We're in our mid-thirties, so a little late to the game, but excited to be here.
It's not so much a savings goal but I'd like to get our finances in a place where we can afford daycare and not affect our savings rate. My wife and I are expecting twins this spring and we already have a two year old... It'll be a challenge this year but I think we can do it.
While the US is very car dependent, if you’re able to, dropping a car from a multi-car household, and/or replacing trips on public transportation or using an electric (or acoustic) bike will equate to cost savings in the long run from extending the life of the car, gas, maintenance, and repairs, potentially save on insurance from the lower mileage, among other benefits.
Erin's "5 Year Rule" from her recent video, "You (Probably) Won't Retire Early," was a real wake-up call regarding the need to save more in a taxable brokerage account instead of just retirement accounts. My monthly brokerage savings are currently pretty minimal so I plan to increase it to $200-$250 a month (or more if possible) this year, in addition to my usual 403b, Roth IRA, and HSA monthly savings.
I would definitely have a large brokerage account and do. No emergency is ever an emergency and you can buy when the market is right, car, house whatever.
In 2024, I’d like for us to continue pay down an extra $1k a month towards mortgage to achieve payoff in 3-4 yrs ($12k), continue maxing out 401k ($46k), Roth IRA ($14k), and we’re starting our HSA ($8100 I know, late in the game). So that’s $80k total…might be a little ambitious for our income with the new limits and adding HSA, but we gotta do it if we want to Coast FIRE by 50 (in 9 year).
I / We (my wife and me) had a £70K target contribution in 2023 and hit £77K. For 2024, I've been a bit ambitious and targeting £100K. This is tight but my wife had a payrise/promotion, I should get one also in April as well as a bonus which I didn't get in 2023 (new job), and we've also started to be a bit better on our costs. I do find writing it down has been very helpful. Although we're probably near the peak of our earnings, I doubt we'd have invested so much last year if it wasn't for the target, and seeing us work toward it during the year was motivating and kept us focused. I would also rather have a tough target that we miss than an easy target we smash. I know people will feel different here, but my outlook. Good luck everybody in 2024!
This year I'm trying to shore up my 6 month emergency savings which is still 5k from my goal and then save into my sinking funds while continuing to save 25% into retirement accounts.
How much you saved in a year can be very ambiguous, in my opinion. Are we talking how much you invested, how much you put into savings or an emergency fund or all of the above? If I saved $10,000 but had to get a new water heater for $1,500 next November, did I still save $10K or just $8,500? I try to keep my goals simple - put “x” to retirement and “y” to savings every paycheck and at the end of the year see the progress. If there’s one thing I’ve learned in adulthood, it’s that you can’t let an unexpected car expense or a broken washing machine deter you. It *will* happen, and it may cause you to fall short of your goals. But just stick to the plan. We’re playing the long game.
Our base monthly expenses is about $2000, with a paid off house and only one paid off car. But hard to say how much we are saving per month. Because we put $ in 401k, Roth IRA, have pensions, interests from multiple CD and high interest money market account, and a base salary and bonus. If I have to guess, I would say we save about $8k per month, slightly below your target of $10k. In other words, I am not sure many people could save $10k as in your title, definitely not with ease nor simple.
My take home paycheck is only 60% of my total paycheck due to taxes and my portion of medical and disability insurance. 15% saved out of my total income would leave me living on 45% of my total income which is hard. I do save 15% of the income I actually get.
My biggest issue is how to split up my discretionary income to meet both my needs and wants -- house repairs/upgrades and vacations. I already have hit my goal savings amount in my retirement plans (401k/HSA/Roth IRA) and I refuse to lower my contribution percentage, so basically I need to make more money. Thankfully I don't need to put a greater percentage into my 401k, so all of my future wage increases can go towards saving for house repairs and vacations. The issue is that my partner wants to go on big vacations at a higher frequency than what I can currently save and I also need a new fence, garage door, and windows. This means that every year I have to pick and choose between going on a big vacation or saving for house repairs. I would love to do both, but I don't make enough money. But it is my dream that both will be possible once I get my next big raise (fingers crossed).
Yeah house repairs are non-negotiable because they will be needed, vacations are optional no matter what anyone says. In my marriage we allow each other to call bs & our rule is when it’s called we take a break and we’re both required to reflect on if it’s reasonable. That mental break is necessary for me to not just get defensive
I saved $85K last year so goal this year is $110K into a HYSA and debt free. This was after a long time being in debt. What Im struggling on is investing. Would love your input as Im late in retirement savings and would like to retire comfortably in the next 12-15 years, buy a property and send son to college so we are debt free. Input welcome.
Now is a really good time to build up your savings. High interest savings options (5%+), overinflated housing & auto markets, and indicators of recession all around. Savings = security, and savings = opportunity.
Life can change a lot in a year. Thus I like to focus on 6 month savings goals One of my goals for the next 6 months is to increase my investing to $75/month. I also want to increase my emergency savings by about $1500.
You should probably calculate the inflation rate for the overall year instead of going with the generic 3% average. The 3% average is a thing of the past.
So again saving is good but the issue is 10K for someone making 32K net is 33% of their entire yearly income. So tell me how they are supposed to save that much if they have to live on 22K for an entire year? Saving anything over a few thousand is not simple with those income(s.)
Depends on the life situation and cost of living in your area. I’m single and rent an apartment in a non-backwater city in Alabama and my total $ spent this year was under $21k. Net spent was less than $15k (after factoring in overtime, tax returns, credit card signup bonuses, etc.). So it is possible. If you’re married or have a kid it’s much more difficult, I’d imagine.
@@LiamRappaport Yep thanks for the head up but I totally agree with you!!! In my area many places don't rent for less than $800 but normally 1K which means people who can live cheap still need to spend 24K by my lowest estimation. Making only 34K that would mean 10K assuming no extra expenses which is likely very unlikely!!!
She said you should aim to save 15-25% of your income. I would concentrate on percentage rather than a dollar amount of $10,000. When you focus on a dollar amount then you have a situation like you described in which that dollar amount makes up too much of a person's income OR in the case of someone making a lot like $200,000/year it ends up being way too little at only 5% of income.
@@ariefraiser140 Do you not realize how many don't have 10% to 15% of their incomes they don't use? OK let me make this point mute real quick. In 2013 my parents ran to each of their kids looking for the equivalent of about 1K!!! And even now my FU*King allowance is only 5% of the money made!!!! And I used to live with people who collectively could not pay $200 a month (2 people) nor $135 a month (3 people) for rent, utilities, and internet access!!! WTF you mean if people can't all afford a 2K emergency (checks were sent out in 2020!!!) how the fu*k do people expect anyone to afford to "save, invest, whatever" 10% to 15% of their money? I now work in a place where people make well over minimum wage and guess what the majority are not rich enough to not need much money (they all seem to have bills.) Ok and last in fast food many think 30K is alot of money now lets think if people are saving close to 15% which is 3K out of 20K made how can that be alot of money? It only took 10 years to save that at max if her numbers are to make any type of sense.
@@donaldlyons17 Hmm. You asked how someone making $33,000 is expected to save $10,000 in a year. I replied they're not and they should aim to save 15%-25% of income. Now even THAT is an issue to you. Listen...if you don't want to save it really makes little difference to me and my life. If you want to have a relatively comfortable retirement that's what needs to be done. $10,000 is way too much for someone making $33,000/year but 15% or about $5,000/year is entirely too much also then ok...rely almost entirely on social security for retirement. Those are the options.
You're getting better and better with the graphics, but with the "Realistically" text I saw the green-screen/Zoom background fuzz. For the first time, I realized you may not be recording in your living room! Still, excellent fundamental content and delivery as usual. Maybe it's time to develop your own Ramsey Baby Steps or Money Guy FOO buzzwords?
Goal is to max out all retirement accounts in addition to dollar cost averaging about $10,000 per year into an index fund and only spending what's left over.
@@donaldlyons17 I said in previous videos. I’ve been watching this channel for quite a while, and it’s my general understanding from what she’s said in the past. While one could scour the archive to look for a quote, I’m trying to save this person time with my vague recollection, which is certainly fallible. Accept it or not, the risk is rather small.
I remember making a "crazy goal" for my annual investment earnings to outpace my best year of savings. When that finally happened I was overjoyed. Earned income - Savings - Investments - Compounding - Financial Independence. That's how it's supposed to work.
We invested $70k, but fell short of our goal. Oh well, we wanted to do more this year with vacations, etc. We don't need to invest what we do, but we're pushing generational wealth so we keep going and going and going!
Savings goal for 2024: my 401K $2500/month, Sue's 403B $1000/month, our HYSA $1000/month & our brokerage account $400/month. Anything above that will go to home upgrades. While we are fairly frugal, we intend to ramp it up a notch and try to shake lose a few more dollars.
Goal is to contribute to 401k up to employer match, max out Roth IRA and HSA accounts. This puts me at 31.1% savings rate. In addition to this I want to invest in a taxable brokerage account and get my total savings rate up to 40%-50%.
Using an online calculator, if you save $675/month for 40 years and get a 5% return, you can retire with $1M. Now, obviously, it's not as easy as it sounds, with unemployment striking occasionally, or emergencies, or the need to pay off a mortgage, student loans, new vehicles, etc.. But it's within reach! Save what you can always, cause sometimes you won't be able to save at all. Hopefully, by the end, you achieved a high enough average savings rate to get where you want to go and beyond.
@@donaldlyons17 Best of luck with your life long savings and investment journey. I can tell you, having done it for 40+ years now, that attitude is what carries you through.
@@dstevens518 So for 40 years you were not gainfully employed? No just attitude can't work because there is a numbers part to the entire equation..... Sorry man I can count and attitude can't fix a number issue!!!!
We will save at least 25% of our gross income in 2024. Its absolutely going to be difficult. We are going to make some sacrifices. However, I don't consider it a goal, its a requirement. If we can't make it work then we'll have to find extra work. I've seen what it looks like to have to work well into your retirement years. I'd rather make the sacrifice now when I'm younger and my body can handle more of the stress.
A net saving rate compared to gross income is simply wrong. Your income based on the average after tax salary is a better percentage. If you save 15% of 75K salary you’ll have little to live on and is unrealistic.
I have been saving 20% based on my gross income (pre-tax) for years. I took it that’s the basis everyone else in these comments is using for their percentages. Totally realistic but not always easy. Did you see that guy claiming a 73% savings rate?!! 20% is totally doable because many of us here are doing it (but it is quite rare in the total population).
@@chemquests Dude do you ever consider that just because you can make 15% on 75K work that does not mean everyone else can also make that work? WTF what about school loans and what about cost of living areas or what about all those other factors that make saving 15% super difficult!!!! Like I was saying in all my other comments when people say something is unrealistic I ask them for their numbers or their reasons why because there are lots of factors I have never considered that make their statement true.
@@donaldlyons17 you’ve confused the meaning of the term “unrealistic”. If we take it to mean “possible”, then I’ve just proven it’s realistic. That’s not the same as saying it fits everyone’s current situation. HOWEVER, if someone’s current circumstances don’t allow for it, then they need to fix those circumstances; it’s not a static, unchangeable situation. Everyone can change their financial circumstances to make it more realistic; that’s fundamental to what personal finance channels are all about.
@@chemquests It is not realistic because of government handing out money.... Why bother with social programs if what you suggest really works well? Like a have been saying just because it is possible does not mean it has a realistic chance of being true..... I am not saying impossible with unrealistic just very unlikely which again is a realistic approach. All I need to do is look at median status to understand the odds and they are not good.
@@donaldlyons17 I’m calling it realistic because lots of people do it. If you don’t, then you won’t have a reasonable retirement. It’s just that simple. I had to pay off my wife’s student loans, our cars, and some credit cards before I could start living debt free and investing heavily. It wasn’t possible to save that much before but the income I used for debt repayment got redirected to investing once we dug out of debt. People need to get off the consumption and debt treadmill for these savings rates to be possible. The fact that some people retire with student loans and a mortgage is insane to me. If you can’t pay off your debts, then you simply need to make more money to create that margin. All the mainstream finance channels say that, and it’s been true in my experience.
Lets be honest the government did not give people money in 2020 because the vast majority were saving 10K every 24 months!!!! With TH-cam you can likely save at least a few thousand so yeah for you 10K might be simple but think about the median income earn and compare that to their after tax income!!!!!!
I dont know how the young generation can retire early with no pension… I am getting close to retirement and my pension covers 50% of my income… with no pension of young people how can they retire in there early 60s….. for most I dont think its possible...
The plan is to max out the 401k plus my employers 10% match (15k), 2 Roth IRAs and HSA while also paying down my mortgage and extra 20k. It certainly helps that i have an extra 30k bonus coming in March that finally has vested after 3 years!
My goal is to invest $1000 a month. Also saving $500 a month for a house. Me and my wife bring home $4750 after tax per month so we're trying.
With 5K between two people you two seem to average $2,500 each which means without each other how would you ever get past $500 a month?
When I was single making $2350 after tax I was saving $525 for retirement and $250 for a house :). @@donaldlyons17
Good job, keep it up!
Excellent
Great goals! I would suggest thinking about swapping the numbers though so that house fund gets $1000. Although real estate may be cooling off, home values have been rising at a rate that $500/month might not get you there
I think you should plan on 10-11 months of income when budgeting. There are always additional expenses at the end of the year: insurance, subscriptions, presents, charitable donations, travel. When I lived in France, companies often would give a "13th month" bonus to help with those expenses. Now that's disappearing.
We create an annual budget and divide by 12. Then we do everything in our power to spend less than the budget. We succeed if we end up spending less than planned.
This week was interesting for me. I was able to sit down with a retirement planner available to me through my deferred compensation plan. He was able to show me for the first time that I can retire at age 60 in two years and will be fine. My wife and I saved diligently and while she is only 56, we can both afford to retire at the same time. But that's where things get funny, it's anxiety provoking for me and then there is the thought that if I continue to work, I can continue to pound away cash. As much as I like my numbers, they could still be better. So now I am thinking, 61 that's the new age. We'll see, but I am finally feeling good about things.
Might as well get a little extra to shore up sequence of returns risk!
I made it a point to shift my thinking from accumulating 'STUFF" to accumulating "EXPERIENCES.' As such, I ended up booking two trips; one of which is in Europe. As a result, I've been extremely aggressive this past year, roughly 30%. The balances are looking good. But once these trips are completely saved for, then I'll pull back. I've experienced opportunity costs big time as a result.
Pursuing FIRE at the moment. Managed to save $2k/mo in 2023 and hoping to bump that to $2.5k/mo in 2024!
Great video. Erin does a great job at presenting a lot of information in a well-articulated manner. I particularly liked the part of increasing one's income as a means for saving more. Many people do not even consider that as a possibility in my experience. I'm a proponent of saving a minimum of 20% of gross income each year, if at all possible. I am futurate to be in a position that will likely allow me to save more than that next year.
My 2024 savings goals: $3500 HSA invested. $8000 car debt paid off. $10,000 Roth 457 invested. +1 year towards pension.
go for it man! stay ! You can do it!
The best financial hack is to make a personal promise that you will be disciplined to work 40+ hours a week in some form of skilled labor until you're savings/index funds can begin to make significant gains. Somewhere along the line we've lost that. Dave "8% withdraw rate" Ramsey is right on this one. Your #1 wealth building tool is your income- at least for the first half of your life. Thanks for the show!
Our goal is to max out my 401k, max out both our IRAs, sign up for the HSA for next year (missed it for this year) and take advantage of those savings next year, and open a joint brokerage account to save as much as we can there - probably $800 a month or so, but we'll see. I'm excited for the HSA situation next year, I think it'll be close to a wash with how much we pay for our health insurance currently. We're in our mid-thirties, so a little late to the game, but excited to be here.
It's not so much a savings goal but I'd like to get our finances in a place where we can afford daycare and not affect our savings rate. My wife and I are expecting twins this spring and we already have a two year old... It'll be a challenge this year but I think we can do it.
I have 3 kids & the daycare struggles are real. Feel you buddy. Upside is it’s for a limited time so it’s ok to have a short term pinch
While the US is very car dependent, if you’re able to, dropping a car from a multi-car household, and/or replacing trips on public transportation or using an electric (or acoustic) bike will equate to cost savings in the long run from extending the life of the car, gas, maintenance, and repairs, potentially save on insurance from the lower mileage, among other benefits.
Erin's "5 Year Rule" from her recent video, "You (Probably) Won't Retire Early," was a real wake-up call regarding the need to save more in a taxable brokerage account instead of just retirement accounts. My monthly brokerage savings are currently pretty minimal so I plan to increase it to $200-$250 a month (or more if possible) this year, in addition to my usual 403b, Roth IRA, and HSA monthly savings.
I would definitely have a large brokerage account and do. No emergency is ever an emergency and you can buy when the market is right, car, house whatever.
Another great video Erin. Happy New Year!
My goal is around 80,000 to 100,000 this year. Should be doable if I watch expenses. Hoping to be able to get a house within the 2 years also
By “save” does this count retirement accounts or is this all after retirement contributions?
It’s all savings whether retirement or otherwise
Ended up saving about 30% this year.
Good stuff, Erin. Thanks!
In 2024, I’d like for us to continue pay down an extra $1k a month towards mortgage to achieve payoff in 3-4 yrs ($12k), continue maxing out 401k ($46k), Roth IRA ($14k), and we’re starting our HSA ($8100 I know, late in the game). So that’s $80k total…might be a little ambitious for our income with the new limits and adding HSA, but we gotta do it if we want to Coast FIRE by 50 (in 9 year).
Happy New Year Erin!!
I / We (my wife and me) had a £70K target contribution in 2023 and hit £77K. For 2024, I've been a bit ambitious and targeting £100K. This is tight but my wife had a payrise/promotion, I should get one also in April as well as a bonus which I didn't get in 2023 (new job), and we've also started to be a bit better on our costs.
I do find writing it down has been very helpful. Although we're probably near the peak of our earnings, I doubt we'd have invested so much last year if it wasn't for the target, and seeing us work toward it during the year was motivating and kept us focused.
I would also rather have a tough target that we miss than an easy target we smash. I know people will feel different here, but my outlook.
Good luck everybody in 2024!
My goal for 2024 is to save more for my house. Thanks for breaking down the numbers as always Erin! 💪
This year I'm trying to shore up my 6 month emergency savings which is still 5k from my goal and then save into my sinking funds while continuing to save 25% into retirement accounts.
Thank you Erin. Happy new year.
How much you saved in a year can be very ambiguous, in my opinion. Are we talking how much you invested, how much you put into savings or an emergency fund or all of the above? If I saved $10,000 but had to get a new water heater for $1,500 next November, did I still save $10K or just $8,500?
I try to keep my goals simple - put “x” to retirement and “y” to savings every paycheck and at the end of the year see the progress. If there’s one thing I’ve learned in adulthood, it’s that you can’t let an unexpected car expense or a broken washing machine deter you. It *will* happen, and it may cause you to fall short of your goals. But just stick to the plan. We’re playing the long game.
Our base monthly expenses is about $2000, with a paid off house and only one paid off car. But hard to say how much we are saving per month. Because we put $ in 401k, Roth IRA, have pensions, interests from multiple CD and high interest money market account, and a base salary and bonus. If I have to guess, I would say we save about $8k per month, slightly below your target of $10k. In other words, I am not sure many people could save $10k as in your title, definitely not with ease nor simple.
My take home paycheck is only 60% of my total paycheck due to taxes and my portion of medical and disability insurance. 15% saved out of my total income would leave me living on 45% of my total income which is hard. I do save 15% of the income I actually get.
My biggest issue is how to split up my discretionary income to meet both my needs and wants -- house repairs/upgrades and vacations. I already have hit my goal savings amount in my retirement plans (401k/HSA/Roth IRA) and I refuse to lower my contribution percentage, so basically I need to make more money. Thankfully I don't need to put a greater percentage into my 401k, so all of my future wage increases can go towards saving for house repairs and vacations.
The issue is that my partner wants to go on big vacations at a higher frequency than what I can currently save and I also need a new fence, garage door, and windows. This means that every year I have to pick and choose between going on a big vacation or saving for house repairs. I would love to do both, but I don't make enough money. But it is my dream that both will be possible once I get my next big raise (fingers crossed).
Yeah house repairs are non-negotiable because they will be needed, vacations are optional no matter what anyone says. In my marriage we allow each other to call bs & our rule is when it’s called we take a break and we’re both required to reflect on if it’s reasonable. That mental break is necessary for me to not just get defensive
I saved $85K last year so goal this year is $110K into a HYSA and debt free. This was after a long time being in debt. What Im struggling on is investing. Would love your input as Im late in retirement savings and would like to retire comfortably in the next 12-15 years, buy a property and send son to college so we are debt free. Input welcome.
Automate it! Set it and forget it is easiest way to invest (annual review & rebalance).
My 2024 goal is to max out 2 Roth IRAs and 2 Roth 457bs plus any extra leftovers I end up with, got the deductions on autopilot from our checks
I wanted to watch this to find out how I could save $32,000 when I'm planning on saving $22,000. I make $75,000. I found out I'm already way ahead.
Now is a really good time to build up your savings. High interest savings options (5%+), overinflated housing & auto markets, and indicators of recession all around. Savings = security, and savings = opportunity.
Life can change a lot in a year. Thus I like to focus on 6 month savings goals
One of my goals for the next 6 months is to increase my investing to $75/month. I also want to increase my emergency savings by about $1500.
You should probably calculate the inflation rate for the overall year instead of going with the generic 3% average. The 3% average is a thing of the past.
No we’re almost back to it and certainly will be this year
My goal is to hit a 20% savings rate this year!
Hello 👋🏽 I think savings are down because of the layoffs that took place. Ppl are trying to just survive
So again saving is good but the issue is 10K for someone making 32K net is 33% of their entire yearly income. So tell me how they are supposed to save that much if they have to live on 22K for an entire year? Saving anything over a few thousand is not simple with those income(s.)
Depends on the life situation and cost of living in your area. I’m single and rent an apartment in a non-backwater city in Alabama and my total $ spent this year was under $21k. Net spent was less than $15k (after factoring in overtime, tax returns, credit card signup bonuses, etc.). So it is possible. If you’re married or have a kid it’s much more difficult, I’d imagine.
@@LiamRappaport Yep thanks for the head up but I totally agree with you!!! In my area many places don't rent for less than $800 but normally 1K which means people who can live cheap still need to spend 24K by my lowest estimation. Making only 34K that would mean 10K assuming no extra expenses which is likely very unlikely!!!
She said you should aim to save 15-25% of your income. I would concentrate on percentage rather than a dollar amount of $10,000. When you focus on a dollar amount then you have a situation like you described in which that dollar amount makes up too much of a person's income OR in the case of someone making a lot like $200,000/year it ends up being way too little at only 5% of income.
@@ariefraiser140 Do you not realize how many don't have 10% to 15% of their incomes they don't use? OK let me make this point mute real quick. In 2013 my parents ran to each of their kids looking for the equivalent of about 1K!!! And even now my FU*King allowance is only 5% of the money made!!!! And I used to live with people who collectively could not pay $200 a month (2 people) nor $135 a month (3 people) for rent, utilities, and internet access!!! WTF you mean if people can't all afford a 2K emergency (checks were sent out in 2020!!!) how the fu*k do people expect anyone to afford to "save, invest, whatever" 10% to 15% of their money? I now work in a place where people make well over minimum wage and guess what the majority are not rich enough to not need much money (they all seem to have bills.) Ok and last in fast food many think 30K is alot of money now lets think if people are saving close to 15% which is 3K out of 20K made how can that be alot of money? It only took 10 years to save that at max if her numbers are to make any type of sense.
@@donaldlyons17 Hmm. You asked how someone making $33,000 is expected to save $10,000 in a year. I replied they're not and they should aim to save 15%-25% of income. Now even THAT is an issue to you. Listen...if you don't want to save it really makes little difference to me and my life. If you want to have a relatively comfortable retirement that's what needs to be done. $10,000 is way too much for someone making $33,000/year but 15% or about $5,000/year is entirely too much also then ok...rely almost entirely on social security for retirement. Those are the options.
You're getting better and better with the graphics, but with the "Realistically" text I saw the green-screen/Zoom background fuzz. For the first time, I realized you may not be recording in your living room! Still, excellent fundamental content and delivery as usual. Maybe it's time to develop your own Ramsey Baby Steps or Money Guy FOO buzzwords?
That's crazy. Some months we save $5k a month and I still feel very behind 😢
Budgeting to invest 20% of projected retirement salary… which is actually 60% right now, haha. Growth stocks averaging 40% return!
Goal is to max out all retirement accounts in addition to dollar cost averaging about $10,000 per year into an index fund and only spending what's left over.
Erin, when you say saving do you mean invest and save or just save by itself ?
From previous videos I think she intends both
@@chemquests If she intended to mean both where in the video did she say both invest and save?
@@donaldlyons17 I said in previous videos. I’ve been watching this channel for quite a while, and it’s my general understanding from what she’s said in the past. While one could scour the archive to look for a quote, I’m trying to save this person time with my vague recollection, which is certainly fallible. Accept it or not, the risk is rather small.
I remember making a "crazy goal" for my annual investment earnings to outpace my best year of savings. When that finally happened I was overjoyed. Earned income - Savings - Investments - Compounding - Financial Independence. That's how it's supposed to work.
We invested $70k, but fell short of our goal. Oh well, we wanted to do more this year with vacations, etc. We don't need to invest what we do, but we're pushing generational wealth so we keep going and going and going!
Savings goal for 2024: my 401K $2500/month, Sue's 403B $1000/month, our HYSA $1000/month & our brokerage account $400/month. Anything above that will go to home upgrades. While we are fairly frugal, we intend to ramp it up a notch and try to shake lose a few more dollars.
Goal is to contribute to 401k up to employer match, max out Roth IRA and HSA accounts. This puts me at 31.1% savings rate. In addition to this I want to invest in a taxable brokerage account and get my total savings rate up to 40%-50%.
Retired, no income, no social security. My "savings" goal is $50k. That's 10% return on investments/trading minus $40k budget.
Erin
Notes
Green
Accumulation
Gains
Exponential
Monetary
Ex-dividend
Nominal
Tax free
I'm around 25-30%. But I have no debts.
1k a month. After jumping into the frugality bandwagon it has been pretty easy
About 20k on the low end. No crystal ball though.
Using an online calculator, if you save $675/month for 40 years and get a 5% return, you can retire with $1M. Now, obviously, it's not as easy as it sounds, with unemployment striking occasionally, or emergencies, or the need to pay off a mortgage, student loans, new vehicles, etc.. But it's within reach! Save what you can always, cause sometimes you won't be able to save at all. Hopefully, by the end, you achieved a high enough average savings rate to get where you want to go and beyond.
Well saving something is like paying something on ones rent or car. Companies want what they asked for not something!!!!
@@donaldlyons17 Best of luck with your life long savings and investment journey. I can tell you, having done it for 40+ years now, that attitude is what carries you through.
@@dstevens518 So for 40 years you were not gainfully employed? No just attitude can't work because there is a numbers part to the entire equation..... Sorry man I can count and attitude can't fix a number issue!!!!
I invested $1,000 per week in 2023. My plan is to do the same in 2024.
We will save at least 25% of our gross income in 2024. Its absolutely going to be difficult. We are going to make some sacrifices. However, I don't consider it a goal, its a requirement. If we can't make it work then we'll have to find extra work.
I've seen what it looks like to have to work well into your retirement years. I'd rather make the sacrifice now when I'm younger and my body can handle more of the stress.
Going to keep investing $1,000 per week into ETF’s
A net saving rate compared to gross income is simply wrong. Your income based on the average after tax salary is a better percentage. If you save 15% of 75K salary you’ll have little to live on and is unrealistic.
I have been saving 20% based on my gross income (pre-tax) for years. I took it that’s the basis everyone else in these comments is using for their percentages. Totally realistic but not always easy. Did you see that guy claiming a 73% savings rate?!! 20% is totally doable because many of us here are doing it (but it is quite rare in the total population).
@@chemquests Dude do you ever consider that just because you can make 15% on 75K work that does not mean everyone else can also make that work? WTF what about school loans and what about cost of living areas or what about all those other factors that make saving 15% super difficult!!!! Like I was saying in all my other comments when people say something is unrealistic I ask them for their numbers or their reasons why because there are lots of factors I have never considered that make their statement true.
@@donaldlyons17 you’ve confused the meaning of the term “unrealistic”. If we take it to mean “possible”, then I’ve just proven it’s realistic. That’s not the same as saying it fits everyone’s current situation. HOWEVER, if someone’s current circumstances don’t allow for it, then they need to fix those circumstances; it’s not a static, unchangeable situation. Everyone can change their financial circumstances to make it more realistic; that’s fundamental to what personal finance channels are all about.
@@chemquests It is not realistic because of government handing out money.... Why bother with social programs if what you suggest really works well? Like a have been saying just because it is possible does not mean it has a realistic chance of being true..... I am not saying impossible with unrealistic just very unlikely which again is a realistic approach. All I need to do is look at median status to understand the odds and they are not good.
@@donaldlyons17 I’m calling it realistic because lots of people do it. If you don’t, then you won’t have a reasonable retirement. It’s just that simple. I had to pay off my wife’s student loans, our cars, and some credit cards before I could start living debt free and investing heavily. It wasn’t possible to save that much before but the income I used for debt repayment got redirected to investing once we dug out of debt. People need to get off the consumption and debt treadmill for these savings rates to be possible. The fact that some people retire with student loans and a mortgage is insane to me. If you can’t pay off your debts, then you simply need to make more money to create that margin. All the mainstream finance channels say that, and it’s been true in my experience.
Our 2024 goal is to be able to invest $500 a month and pay $100 extra to principal only on our mortgage from our monthly dividends.
40k
My goal last year was to pay off my mortgage early, which I did. Now guess what I'm saving. :)
With people like Erin I just wonder about their math averaged out.....
Save 15k. This is about %15 savings rate.
My goal is 73% savings rate in 2024. I aim high every year
Looks like I'm gonna have to learn how to eat Quarters and s#!t Dollars...
It is called $$ cost averaging for 30-40 years.
Lets be honest the government did not give people money in 2020 because the vast majority were saving 10K every 24 months!!!! With TH-cam you can likely save at least a few thousand so yeah for you 10K might be simple but think about the median income earn and compare that to their after tax income!!!!!!
I dont know how the young generation can retire early with no pension… I am getting close to retirement and my pension covers 50% of my income… with no pension of young people how can they retire in there early 60s….. for most I dont think its possible...
Depends on their incomes vs. expenses when retired right?