How much should I have saved by 25 and when I am 28

vaporate

aylithuk wrote: »

Everyone is diffrent. My parents asked me to move out when I started collage because they couldn't afford a 3 bed house and it was cheaper for me to rent and pay my own way on my part time job. It can be done and at the grand age of 28 I've only got a 1k in savings because I use my savings for what they are meant for = rainy day problems and hicupps.

Thanks. :beer:

Masomnia

I'm 20 and graduating in July, and I'm desperate not to move back home. Honestly I'd rather struggle paying my own way and have freedom and independence than be a few grand better off and living with parents. So ina few months time I'll be looking for any job I can get to afford to rent somewhere cheap.

The thought of it just being me and my mum chills me to the bones, love her though I do.

PasturesNew

mitchaa wrote: »

33 as an average living with parents:rotfl:That surely means if someone like me who moved out at 17, must have a 49yr old counterpart living at home to average that 33 figure. Yeah right:rotfl:

Hey ... mitchaa.... *POP* goes your bubble.
Right now, today, that's me you just described!
For real.

barny_100

ninky wrote: »

quite a fun equation the authors of 'the millionaire next door' came up with. to be an average accumulator of wealth (aaw) you should have assets/ savings worth around your age divided by 10 and multiplied by your current annual income. so for you 2.5x12k =30k. an underachiever of wealth will have less than half this whilst a prodigious achiever of wealth will have more than double.

http://en.wikipedia.org/wiki/The_Millionaire_Next_Door

I know it's been said before but this is :rotfl: and :mad:. Laughable because it's gibberish and maddening as it makes people feel worse about their finances than they should.

barny_100

dunstonh wrote: »

There are no guides to how much you should have and by when with savings. The only guide I know is one on pensions in that you should aim to have £35k in your pension by age 35. However, like others said, even that is subjective depending on what you want in retirement and when you want it.

Ahh a question I've meant to ask before on this. Does this figure include investments such as a S&S ISA that you intend to withdraw only for retirement?

ninky_2

barny_100 wrote: »

I know it's been said before but this is :rotfl: and :mad:. Laughable because it's gibberish and maddening as it makes people feel worse about their finances than they should.

i know. i wasn't suggesting people take it as gospel. although i guess if you fall into the PAW category you can feel even more smug.

barny_100

ninky wrote: »

i know. i wasn't suggesting people take it as gospel. although i guess if you fall into the PAW category you can feel even more smug.

Why would they feel smug that an "equation" that bears no relation to real life validates their existence? It's not a big deal but just seems odd to see it on these boards where myths should be busted rather than propagated.

ninky_2

barny_100 wrote: »

Why would they feel smug that an "equation" that bears no relation to real life validates their existence? It's not a big deal but just seems odd to see it on these boards where myths should be busted rather than propagated.

you're right. i apologise unreservedly for tainting these hallowed boards with such spurious nonsense.:p

jon3001

barny_100 wrote: »

Why would they feel smug that an "equation" that bears no relation to real life validates their existence? It's not a big deal but just seems odd to see it on these boards where myths should be busted rather than propagated.

The "equation" is a statistical fit on real data. In what way is it a myth?

jon3001

barny_100 wrote: »

I know it's been said before but this is :rotfl: and :mad:. Laughable because it's gibberish and maddening as it makes people feel worse about their finances than they should.

Which people? I don't feel worse. In fact reading the book some years ago encouraged me to get things in order.