Your age, your salary, and how much you save

[I_Speak_Jive]

yea... i am asking again because this has been very concerning to me off-late. i feel like i am a loser for not having savings, investment, and a home by 34. all my friends are married, have kids, and own a home and here i am sitting in a rented apartment and still single.

 

also my family back home in India is wondering how my cousin brother (same age, married and working in Microsoft) has 2 cars and owns a home while i only have 1 car and still renting.

 

Ok, this is my own take on this -and maybe it will help.

 

You must never, ever forget that most of the so-called 'wealth' of the past 10 years or so has been nothing but people using their houses as an automated banking machine and running on unsustainably cheap credit. Debt is not wealth. There is very little personal merit on 'owning' three BMWs by signing a paper to your bank.

 

Tons of people I know on my age group have big mortgages and cars. I, however, have done things a little different. I am now wrapping up my PhD and I have directed all my efforts towards not accruing debt -no student loans, no credit cards, no mortgage. I rent, which gives me the freedom to move around as much as I want. How much debt do you have? I suspect, not much. And that's a good thing.

 

Other than that, commodity fetishism is evil. Status anxiety will corrode you from within until you don't even know who you are anymore. There is nothing more alienating than looking at yourself in terms of what you have. If you reduce the amazing thing that is you -the universe's physical tendency towards complexity that resulted in your unique, irreplaceable existence- to the price tag on your sofa, it's time to sit up and take notice because you (not you specifically, I mean anyone) are doing something terribly wrong.

 

You have one car. You are one person. Unless you can detach your lower body from your upper one, you will only ever need one car to drive your one self around (and if you are lucky enough to live in a human-friendly city you will never actually need to own the damn thing).

 

You rent. Congratulations. You did not sell your life to a bank in indentured slavery in order to buy an overinflated asset on a giant pyramid scheme propped up by collective greed and hysteria. Property ownership is cool during the bubble years, but right now it's looking increasingly like a burden and (in more and more cases) like complete financial irresponsibility on the part of the owner/borrower.

 

And I would like to finish this off with a very poignant quote from Naomi Wolf:

 

"Consumer culture depends on maintaining a broken line of communication between [people] and promoting sexual insecurities. Sexual satisfaction eases the strangehold of materialism, since status symbols no longer look sexual, but irrelevant. The price we pay for artificially buoying up this market is our heart's desire"

(Namoi Wolf, The Beauty Myth)

 

Draw your own conclusions. But they have to be YOUR OWN, not your parents' or someone else's.

[grymoire]

I know a few people my age who are wealthy. The rest of us are catching up from losing jobs or salary cuts, a reduction in benefits, and a hampered ability to get loans or credit cards at reasonable rates--despite good credit. My retirement accounts were reduced by more than 50% in the past few years. I've been hanging tight, hoping that they'll come back.

 

I'll tell you that I used to think it didn't matter what you saved, there is always help for lower income people. But, after working in long term care, I know that having money does matter, especially if someone needs long term health care.

 

I totally agree.... losing a job just puts a monkey wrench on all the plans right? and yea.. with that goes health-care as well

[grymoire]

There is a difference between "investing" and "status." At times, it is smarter, much smarter to rent than own. A lot of people who bought property in 2003 or so are now wishing they had stayed renters. Those of us who invested in the stock market before the two big busts (tech and housing) wished that we had just stuck the money under the mattress (figuratively, not literally) instead.

 

Owning 2 cars and a home means that your cousin has a lot more negative cash flow every month than you do. If he timed his housing purchase right, it might work out for him, but two cars? That doesn't make any financial sense at all, unless they are collector's items he can eventually re-sell for profit.

 

my cousin is married and has 3 kids. his wife does not work (she never did ever since coming to the USA). i guess he purchased the second car for her.

[grymoire]

thanks for a great post bro.... the problem with us, immigrants is - we arrive to the USA and if we do not accomplish certain things by certain age we tend to get looked down upon by people back home. they are not aware of things like recession (what is that?!?!?), mortgage, credit system etc. all they see is this - Grymoire and X went to the USA. X is married, owns a home and 2 cars while Grymoire is still single and sitting in a rented apartment

[CaptainNapalm]

1) 29

2) earn: $4500/month

3) save: $2000/month

[Kaiser_Soze]

1) 31

2) Last month $15,300 (average $12,000)

3) zip.... I know its pathetic, I have hella expenses and overspend like crazy.

 

I've thought about eliminating some of my expenses, but I like the lifestyle I live. I know its gonna bite me in the end.

[grymoire]

1) 31

2) Last month $15,300 (average $12,000)

3) zip.... I know its pathetic, I have hella expenses and overspend like crazy.

 

I've thought about eliminating some of my expenses, but I like the lifestyle I live. I know its gonna bite me in the end.

 

you earn $12,000 per month??

[Kaiser_Soze]

you earn $12,000 per month??

 

I'm self employed, believe it or not most of my income is from selling doors and windows. Good money in it if your good at it. Its much more complicated than it sounds. Many of my clients are really well off, building 8,000 sf mansions. The thing thats even crazier than that is I never even went to College!

[grymoire]

I'm self employed, believe it or not most of my income is from selling doors and windows. Good money in it if your good at it. Its much more complicated than it sounds. Many of my clients are really well off, building 8,000 sf mansions. The thing thats even crazier than that is I never even went to College!

 

wow man!

 

well as an immigrant in this country i really cannot own a business.

[Kaiser_Soze]

wow man!

 

well as an immigrant in this country i really cannot own a business.

 

You don't have to own it. There are opportunities everywhere. Sales have always been an area that I have made money. It always seems the positions with the highest potential come with the least security. Most jobs I have held were straight commission. Hell I've had bad months too. My worst month doing this has been around $4,000 (which didn't come close to covering my bills) but where else can I make that kind of money without a degree or trade?

[DaBladeRoden]

1. 25

2. about $100 if parents count

3. I'd guess about $50

[grymoire]

1. 25

2. about $100 if parents count

3. I'd guess about $50

 

are you joking?

 

what do you mean $100? and what's meant by 'if parents count'?? you don't earn any money at all?

[DaBladeRoden]

are you joking?

 

what do you mean $100? and what's meant by 'if parents count'?? you don't earn any money at all?

 

that's what the parents give me

[grymoire]

that's what the parents give me

 

ok. so you don't work. your parents give you $100 a month?

 

are you living with your parents? how do you manage your expenses?/pay bills?

 

and what do you do the whole day if you don't work?

[DaBladeRoden]

ok. so you don't work. your parents give you $100 a month?

 

are you living with your parents? how do you manage your expenses?/pay bills?

 

and what do you do the whole day if you don't work?

 

I dunno it might be less. Somewhere between $50-$100

 

Yes. I still have some money left from when i was working.

 

explore my hobbies and interests, read the forums, talk to people, watch shows, and develop job skills.

[grymoire]

I dunno it might be less. Somewhere between $50-$100

 

Yes. I still have some money left from when i was working.

 

explore my hobbies and interests, read the forums, talk to people, watch shows, and develop job skills.

 

oh ok.. i hope you get a good job soon. good luck with it.

 

can you expound more on 'explore my hobbies and interests'? what exactly are your hobbies and interests?

[DaBladeRoden]

art, drawing, comics, video games, like in designing or mapping, making videos, curling, acting, exercising, electronics, DIY, though sadly the lack of funds does hamper things like learning to fly.

[grymoire]

art, drawing, comics, video games, like in designing or mapping, making videos, curling, acting, exercising, electronics, DIY, though sadly the lack of funds does hamper things like learning to fly.

 

oh ok.. you seem to have lot of interests... must keep you occupied the whole day.

[DaBladeRoden]

oh ok.. you seem to have lot of interests... must keep you occupied the whole day.

 

Sadly on most days I have trouble motivating myself beyond enotalone, tv, and video games

[livinginsbi]

46

about 4800

 

seriously? I just signed the final settlement papers, I'm doing it all on my own, new apartment, new town, (fairly)new car... I got nuthin'! But... my goal is that within the next 2-3 years I'll be back in my own home and back on my feet.

[Hope75]

are you joking or are you being serious? by 34 yrs of age people have LOTS of money in their savings acct right? plus home and investments.

 

Not necessarily.... I am 33 (will be 34 in Nov.) and my husband is 34. We do own a home and have 401K and a small savings, but we don't have LOTS of money as you put it in savings, we spent quite a bit this year on home improvements, lost a decent amount in the stock market with the crash, paid for our fairly large wedding last year, and had a baby 3 months ago (all the crap they need?? Holy crow, that was expensive LOL) and I've cut back my work hours to watch the baby.

 

Plus, I didn't start my career until I was 30, I went back to school late.

 

So, I can't speak for all 30 something's but I wouldn't be so quick to assume they have LOTs in savings... most people my age I know do NOT have large savings, in fact only about half are homeowners.

 

My husband and I are living comfortably but by no means will be looking at early retirement or a new Caddy next year.

[LazyDaisy]

If you file your income tax using Turbo Tax you can run a program that shows you what other people in your income bracket reported on their return - it gives averages.

[jennamajig]

27

~$3500 each month before taxes.

I rent my own place (no roommates) and I'm trying to pay off some debt, but I do put $100 each month into my 403(b) and then at least $150-200 into regular savings (more if I can). I do have plans to go back to school full time in a couple of years and want to pay down the debt before I get new student loan debt

 

I actually have no desire to own a home. I like the fact that my rent includes heat and hot water and when something breaks, I call my management company and they fix with no additional costs. I may change my mind about that, but for now, I'm content.

[renaissancewoman101]

36.

 

I make enough each month to pay rent and have about $1900 leftover for savings and bills and stuff.

 

I do have a small 401K

 

I also sock about $200/month away in savings. (Just started that a year ago)

[catfeeder]

are you joking or are you being serious? by 34 yrs of age people have LOTS of money in their savings acct right? plus home and investments.

 

Most 30-somethings I know are deep in credit card debt on top of student loans and car payments. Don't let large salaries and McMansions fool you.