Author Topic: What should be my saving targets before settling down?  (Read 3963 times)

legacyoneup

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What should be my saving targets before settling down?
« on: October 04, 2013, 12:48:49 PM »
I'm single, will turn 34 on 31st Dec this year and here are the financial details :

Savings : $15,361.

Income : $2,421 and change twice a month ( after taxes ).

Carfree ( no car ). I just live across the road from my office.
No TV since 2004.

Expenses :
Rent $890 / 2 ( I have a roommate )
Power : $80 / 2
Wireless : $66.07 ( ATT )
Internet : $57 / 2 ( TWC )

A few $100 on certification exams ( $300 and $245 so far this year ). I have a rare stamp collection habit which i recently put a brake on.

I've been putting away around 3.5k into my savings every month.

My question : How much should i salt away before getting settled and starting a family?

StarryC

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Re: What should be my saving targets before settling down?
« Reply #1 on: October 04, 2013, 01:30:49 PM »
You have enough.  You'll never have enough.  People living on less than $1 a day settle down and have families.  As with the questions about children, if you want to have a mate, there is no financial reason big enough to outweigh the joy.  There is no amount of money large enough to guarantee you won't have some hardship at some point, or conflict about money at some point.

Monthly income: $4,842
Annual income: $58,104
Monthly expenditures:  $1,342
Savings rate (appx): 72%
# of months you could live on savings: 11

I see no reason you would be financially unable to pay for a few coffees for dates, to rent a car if necessary, or even to pay for Match.com.  You make a little more than the median family income in the US, so more than half of the families in this country probably live on a similar amount or less. 

matchewed

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Re: What should be my saving targets before settling down?
« Reply #2 on: October 04, 2013, 01:38:23 PM »
Seems rather strange to have a savings target before a lifestyle goal that doesn't require savings. It's one thing to ask how much do I need to take a few years off or FIRE, it's another to ask how much do I need to be married.

legacyoneup

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Re: What should be my saving targets before settling down?
« Reply #3 on: October 04, 2013, 02:03:05 PM »
Well.. yep.. I'm just a bit overcautious at this point.

My dad more or less messed up the family finances and its taken me about a decade to fix and set things up so that they will be comfortable henceforth. I wrapped up that chapter earlier this year and am now saving for myself and a family when I have one.

I am saving aggressively now as I do not ever want my family to see similar days.... we were homeless for a bit. I thought there might be a certain amount between 40k to 150k which you guys might advise me to reach first which could possibly take care of any large expenses that will likely crop up on that journey.

Megatron

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Re: What should be my saving targets before settling down?
« Reply #4 on: October 04, 2013, 02:22:17 PM »
I don't think there's an amount that you can attach to it. You just make due with what you got when the time comes I guess and make adjustments along the way. The fact that you are on sites like MMM and asking questions makes me think that you're going to be alright. I personally would be okay with just a few months of expenses before "settling down and starting a family." But I've experienced what it was like to see my parents sold everything they had 20 some years ago for plane tickets to immigrate to the United States with 2 small young children and less than $200 in their pockets, not much of an education and not a word of English. and they did okay. so I wouldn't worry too much.

apennysaved

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Re: What should be my saving targets before settling down?
« Reply #5 on: October 04, 2013, 02:31:44 PM »
You never know what the mate will end up contributing as well, so I would not have a dollar amount in mind. I met my husband when he was in grad school, and he did not have as high a net worth as me.  However, the important thing is that our thoughts about money & other aspects of life were and are very much in line with each other which makes life much easier.  I feel bad for people who are trying to get their finances in order & their significant other is not on board.  So I hope you find someone that shares those values and you can support and grow your staches together.

zinethstache

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Re: What should be my saving targets before settling down?
« Reply #6 on: October 04, 2013, 03:21:03 PM »
The sad thing is, you could save that 150k, then later some catastrophe comes along, wipes it out and you are still homeless. I think that you need to gain confidence with yourself after an event like that. Most likely that experience will keep you humble, responsible and very mustachian for the rest of your life, but remember that you do have a life to live. I say embrace it!

I am also pretty darn sure you will find a compatible mustachian soul to share you life with and that will also go a long ways to achieve the stability you are after.


HappierAtHome

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Re: What should be my saving targets before settling down?
« Reply #7 on: October 05, 2013, 02:24:55 AM »
Quote
I am saving aggressively now as I do not ever want my family to see similar days.... we were homeless for a bit.

I get you. Sounds like your childhood was similar to mine, and it's made me extremely risk-averse with finances.

FWIW, I'm planning to have a paid off rental, a third of our 'family home' paid off and a $50K emergency fund before I get knocked up. Or as I phrase it, "I'm not fertile until our joint net worth reaches $1M". Obviously that's a pretty out-there goal for some people, but I think it makes sense to get your ducks in a row before adding those sweet little liabilities. I mean babies.

Personally, I think one year's expenses saved in an emergency fund (or in index funds if you're comfortable with that) is a good baseline before you have kids. But don't wait to meet your life partner until then - they could be out there, saving money and waiting for you right now :-)

TS

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Re: What should be my saving targets before settling down?
« Reply #8 on: October 05, 2013, 03:02:02 AM »
You should settle down whenever you meet someone who makes you feel like you want to spend the rest of your life with them ... savings don't really come into that equation.