- Unplanned pregnancy- There is like 0.0001% chance of this happening due to reliable birth control (not the pill). - Planned pregnancy- Not planning on this for a few more years. We also both have really good health insurance so a birth wouldn't wipe out my savings. In fact, I believe it's under $1,000. - Car breaks down- My car has 55,000 miles on it. I'm not sure what could go wrong that would wipe out my savings. Even worst case scenario would be probably a few thousand. - Medical emergency- Again, really good insurance. - Job loss- This would suck. However, I've left all of my previous jobs on good terms and at least one would welcome me back with open arms. It'd be less money, but I wouldn't be out of work for long. tldr = I am/feel very secure in my current life position.
The largest reason people file for bankruptcy: medical expenses. The majority of these people have medical insurance.
The pay-to-play system of funding favors the sectors with the most need of this kind of reform, which is why these kinds of politicians are mostly only found in small parties or losing in Democratic primaries instead of in office.
To be clear you said $27,000 in assets, I don't how much of that is liquid and if you were including your tax deferred accounts. But I seriously think you are underestimating the cost of a child (its more than the medical procedure). I also think you are underestimating your health insurance costs, unless you have some rare pricing of no deductibles. Car troubles (sounds like you only have one car) could lead to job loss depending on your job security. Medical emergency can also lead to job loss, even though you would have disability to go on for short term. Even if other companies would hire you back, they might not have positions open when you need them. Look, I'm not saying saving isn't the way to go. I'm saying it can only do so much.
I could go through all of these posts and disprove all of these points but my original intent was to show that millenials can save, even if they don't make a ton of money. Sure, we can all play the "what if" game. What if an asteroid crushed your house, car, and place of work? Sure, if I lost my job and my girlfriend got pregnant, I'd be screwed, but who wouldn't? We can't all be prepared for everything. I can tell you that I'm prepared for any ONE of those events. I consider myself much more prepared than most people my age. People into their 40's have student loan debt, people keep credit card balances and make minimum payments, and most will do the minimum that they must into their 401k and that's it. I can't fathom doing any of those things.
Not sure what you are trying to prove with this post. I am sure we'd all like to imagine having our base salaries double and of course it could enable better savings and a higher standard of living. What is your suggestion for him having his base salary double? Since you imply it is an everyday occurrence, please pass on that information to all of the BBS.
I am in my late 40's and am just now able to start putting significant non 401K money aside. Ironically that coincides with my children growing up. My last one is in college and when I finish paying for that I will be doing really well on savings. Of course I am still paying the car insurance and cell phone bill for the one on his own but otherwise he is self sufficient and could probably pay for those items too. My wife and kids all drive better and newer vehicles than me all of which I have bought or am currently paying for. I drive a 15 year old truck. We would have had more but chose for my wife not to work and to stay home to raise our children other than time spent as a substitute teacher which was more so she could be involved at the school to know what was going on rather than for income. I am sure most will find they can save MUCH more once their children get on their own. Also, as you work and move up in a company your wages go up, you build equity in your home, etc.... As someone earlier in the thread stated, anyone not putting in up to what their company will match in a 401K is losing free money.
on the other end of the spectrum A recent survey on the saving habits of millennials, those belonging to the age group from 23 to 37, by BoA says that 1 in 6 Millennials Has $100K in Savings http://fortune.com/2018/01/24/millennials-saving-money/
The article I posted indicates the same -- the numbers are a bit different, but the percentages are similar. About one-third are saving for retirement. Most have less than $20,000 but some have much more. The average account balance is $67,891, according to the report. If they are saving, it's likely their employer offers a retirement plan, like a 401(k). More than 94% of Millennials who are eligible for a workplace retirement plan are saving. That's about the same participation rate as older generations.
The point is that wages have stagnated (sure the poster could just have a shitty job) and that even with frugal lifestyle of saving, the average household cannot survive ANY major setback. Edit: Btw, the poster is 29. In our parent's generation's age, he would've already been raising 3 kids. To be clear, I'm not saving he could easily double his base salary. I'm saying that his post makes it sound like his salary is easily enough to maintain a comfortable modern lifestyle so everyone just should be able to do it.
His point was that even with his salary, he is able to live within his means and contribute to savings. Of course things may occur that would put a significant dent or deplete any savings, but you come across as challenging him and he has done absolutely nothing wrong. There is nothing wrong with folks delaying having kids or choosing to not have kids. He appears to be choosing frugality and socking some money away as opposed to making lifestyle choices that don't fit his financial situation. Other folks have to save for their lifestyle choices. Even if they make $75,000/year, they could run into situations that deplete their savings.
I'm totally not challenging his lifestyle choices, and applauded it in my first reply. The point I'm trying to make is while saving is ideal, increase in income/revenue is the difference maker.
I read this article literally the day before seeing this thread: https://priceonomics.com/how-much-money-do-people-have/ It suggests that my net worth is on par with people who make 100-120k, and I make 38k. Just seemed pretty crazy to me. I mentioned "lifestyle creep" in my last post. That's the issue, as people make more, they also spend more. So yes, increasing my income would be great as long as I maintain my current lifestyle. I'm not saying everyone could do it, there are certainly extenuating circumstances, but a lot more could, trust me. I have many friends that do, but I also know people who complain that they have $500 to their name and purchase a new car within the year. As a millenial, I personally think that the "millenials have it so hard" thing is overblown.
Here is a more interesting question, how much do you think you need to have in asset for yourself when you retire? I would think 750k is a minimum for comfortable middle class living in the US, this includes a paid for house of 200-250k (us median home value). I am not even talking about living places like NY, SF.
With the help of my valuable investment advices, a few of retired middle class folks lost their saving. Its difficult to give you an exact answer but I will work on it if you want
Yes, your number is quite right. But we need at least $1M or M1.5 to have a better life after a retirement.
