Author Topic: savings rates for millennials hits -2%!  (Read 33059 times)

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: savings rates for millennials hits -2%!
« Reply #100 on: November 26, 2014, 08:32:08 AM »
yeah there are a bunch of us millennials who save ... i found this site last year.  i hadnt considered early retirement until then.  i always assumed i needed 5MM and was set to easily have that at 55.  but now i'm shooting for 1.5MM and retiring at 35-40.  i always assumed i needed 100K+ per year b/c thats what we make now.  i never took into account the fact i was saving + the fact i wouldnt have a mortgage etc.  i was always a saver but this site put into perspective how much i was actually spending and how awesome my current lifestyle was and that i could easily live on 50k give or take per year in retirement (note i'm not full mustachian).

Are you me?

no i'm 28 ... you're way older

odput

  • Bristles
  • ***
  • Posts: 414
  • Age: 33
  • "I reject your reality and substitute my own"
Re: savings rates for millennials hits -2%!
« Reply #101 on: November 26, 2014, 08:44:29 AM »
yeah there are a bunch of us millennials who save ... i found this site last year.  i hadnt considered early retirement until then.  i always assumed i needed 5MM and was set to easily have that at 55.  but now i'm shooting for 1.5MM and retiring at 35-40.  i always assumed i needed 100K+ per year b/c thats what we make now.  i never took into account the fact i was saving + the fact i wouldnt have a mortgage etc.  i was always a saver but this site put into perspective how much i was actually spending and how awesome my current lifestyle was and that i could easily live on 50k give or take per year in retirement (note i'm not full mustachian).

Are you me?

no i'm 28 ... you're way older

What's funny about that is the only part of your post that doesn't line up with me exactly was that you found MMM last year...I found MMM 2 years ago, so really, you could still be past me (thanks for stopping the shafting!)

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: savings rates for millennials hits -2%!
« Reply #102 on: November 26, 2014, 08:57:29 AM »
So we are basically the same then i found at 27 you found at 27.  Ha thats pretty great.  would be super crazy if you owned a boat and thats why your number was so high for retiring but i doubt that. 

dragoncar

  • Walrus Stache
  • *******
  • Posts: 8424
  • Registered member
Re: savings rates for millennials hits -2%!
« Reply #103 on: November 26, 2014, 10:03:16 AM »
Confirmed .. odput is boarder42 from 1 year in the future

yeah there are a bunch of us millennials who save ... i found this site last year.  i hadnt considered early retirement until then.  i always assumed i needed 5MM and was set to easily have that at 55.  but now i'm shooting for 1.5MM and retiring at 35-40.  i always assumed i needed 100K+ per year b/c thats what we make now.  i never took into account the fact i was saving + the fact i wouldnt have a mortgage etc.  i was always a saver but this site put into perspective how much i was actually spending and how awesome my current lifestyle was and that i could easily live on 50k give or take per year in retirement (note i'm not full mustachian).

Are you me?

no i'm 28 ... you're way older

What's funny about that is the only part of your post that doesn't line up with me exactly was that you found MMM last year...I found MMM 2 years ago, so really, you could still be past me (thanks for stopping the shafting!)

Middlesbrough

  • Bristles
  • ***
  • Posts: 268
Re: savings rates for millennials hits -2%!
« Reply #104 on: November 26, 2014, 10:08:34 AM »
yeah there are a bunch of us millennials who save ... i found this site last year.  i hadnt considered early retirement until then.  i always assumed i needed 5MM and was set to easily have that at 55.  but now i'm shooting for 1.5MM and retiring at 35-40.  i always assumed i needed 100K+ per year b/c thats what we make now.  i never took into account the fact i was saving + the fact i wouldnt have a mortgage etc.  i was always a saver but this site put into perspective how much i was actually spending and how awesome my current lifestyle was and that i could easily live on 50k give or take per year in retirement (note i'm not full mustachian).

Are you me?

no i'm 28 ... you're way older

What's funny about that is the only part of your post that doesn't line up with me exactly was that you found MMM last year...I found MMM 2 years ago, so really, you could still be past me (thanks for stopping the shafting!)
Twilight Zone song "ne ne ne ne, ne ne ne ne, ne ne ne ne"

RetiredAt63

  • Senior Mustachian
  • ********
  • Posts: 10359
  • Location: Eastern Ontario, Canada
Re: savings rates for millennials hits -2%!
« Reply #105 on: November 28, 2014, 09:48:19 AM »
When you can't get on, are you talking HGTV or her web site?  She has her own web site and blog now.
http://gailvazoxlade.com/blog/
http://www.gailvazoxlade.com/

I feel with you, when I was in the U.S. during the Olympics last year, I couldn't get CBC's internet coverage.

I miss Gail. After I cut cable, I couldn't get her show anymore.  I'm so sad, and I go to the website for it and I'm blocked for not being Canadian.

Kaspian

  • Handlebar Stache
  • *****
  • Posts: 1536
  • Location: Canada
    • My Necronomicon of Badassity
Re: savings rates for millennials hits -2%!
« Reply #106 on: November 28, 2014, 02:01:59 PM »
...constant catastrophic doom-mongering in the media which has led them to say "Fuck it all!  The world is going to shit and I deserve good things.

Haha...  The GenX punk rockers experienced the same mentality but came to a very different conclusion.  We decided to instead make our own clothes, play used instruments, spike our hair, and drink cheap beer.  We didn't even have the money to go into debt.  So glad that credit cards and worthless arts degrees weren't de rigueur back then.  We just wanted enough cash for food and smokes.

aschmidt2930

  • Bristles
  • ***
  • Posts: 273
Re: savings rates for millennials hits -2%!
« Reply #107 on: November 29, 2014, 10:41:50 AM »
I just don't understand. I have no idea how I could spend my entire paycheck. My theory is brunch.

eyePod

  • Pencil Stache
  • ****
  • Posts: 966
    • Flipping A Dollar
Re: savings rates for millennials hits -2%!
« Reply #108 on: November 30, 2014, 08:43:05 AM »


I hate the way millennials get slammed in the media for sucking. Is it surprising that a generation with higher unemployment, lower wages, and insane student debt is having a hard time saving? Couple those factors with typical societal pressures and you have a recipe for disaster!

That being said, I know a lot of my college classmates are saving far above average. My personal rate is a meager 12%, but we plan to ratchet it up to around 35% over the next 5 years. There is hope, educate those who are curious and lead by example.

I don't really get the way the US media acts like student loan debt is some crushing problem. I can't access the article anymore, but I remember it saying that the average debt was only like $30k or less. If your post-university job doesn't allow you to save that much per year, university wasn't a very good investment.

A debt that you can pay off in a single year really isn't a big deal. But with typical student loan interest rates, there's also no real need to pay it off. I have no plans to pay off my student loans any sooner than required. Typical interest rates are 3-4% with very small minimum payment requirements, making it an excellent arbitrage opportunity. I expect to still have student loans throughout retirement.

I think you're overestimating how much the AVERAGE college graduate makes with how much the AVERAGE engineer or other high-earning graduate makes. Lots of these folks barely make $30k their first year out, if they can even get a job. And I dunno about your typical interest rates, but my government-backed Stafford loans originated at 6.8, with Parent PLUS loans at 7.9, with no official way to refinance to the now-lower interest rates.

I think at some point we need to hold people accountable (even if they're stupid kids) for not actually thinking about consequences of student loans. It's not trivial. They decided what to go to school for and need to understand the impact and whether or not they are going to get a good return on that degree. And if they don't want one that gives one, that's fine, but it should be a conscious decision. No one is forcing them to go to college.

eyePod

  • Pencil Stache
  • ****
  • Posts: 966
    • Flipping A Dollar
Re: savings rates for millennials hits -2%!
« Reply #109 on: November 30, 2014, 08:45:31 AM »


I hate the way millennials get slammed in the media for sucking. Is it surprising that a generation with higher unemployment, lower wages, and insane student debt is having a hard time saving? Couple those factors with typical societal pressures and you have a recipe for disaster!

That being said, I know a lot of my college classmates are saving far above average. My personal rate is a meager 12%, but we plan to ratchet it up to around 35% over the next 5 years. There is hope, educate those who are curious and lead by example.

I don't really get the way the US media acts like student loan debt is some crushing problem. I can't access the article anymore, but I remember it saying that the average debt was only like $30k or less. If your post-university job doesn't allow you to save that much per year, university wasn't a very good investment.

A debt that you can pay off in a single year really isn't a big deal. But with typical student loan interest rates, there's also no real need to pay it off. I have no plans to pay off my student loans any sooner than required. Typical interest rates are 3-4% with very small minimum payment requirements, making it an excellent arbitrage opportunity. I expect to still have student loans throughout retirement.

I think you're overestimating how much the AVERAGE college graduate makes with how much the AVERAGE engineer or other high-earning graduate makes. Lots of these folks barely make $30k their first year out, if they can even get a job. And I dunno about your typical interest rates, but my government-backed Stafford loans originated at 6.8, with Parent PLUS loans at 7.9, with no official way to refinance to the now-lower interest rates.

And you're underestimating what the average person is making out of college: "The overall average starting salary for Class of 2013 new college graduates currently stands at $45,327, an increase of 2.4 percent over the reported average of $44,259 for Class of 2012 graduates, according to the September 2013 Salary Survey."

https://www.google.com/search?q=average+salary+college+graduate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=fflb

Daisy

  • Handlebar Stache
  • *****
  • Posts: 2018
Re: savings rates for millennials hits -2%!
« Reply #110 on: December 02, 2014, 10:27:31 PM »
...constant catastrophic doom-mongering in the media which has led them to say "Fuck it all!  The world is going to shit and I deserve good things.

Haha...  The GenX punk rockers experienced the same mentality but came to a very different conclusion.  We decided to instead make our own clothes, play used instruments, spike our hair, and drink cheap beer.  We didn't even have the money to go into debt.  So glad that credit cards and worthless arts degrees weren't de rigueur back then.  We just wanted enough cash for food and smokes.

All right! Another Gen-Xer trying to take over this thread. Maybe each generation has problems they have to overcome, but we just deal with it differently.

Gen-Xers dealt with it with apathy, punk rock, latch keys, mohawks, leggings, divorce.

infogoon

  • Pencil Stache
  • ****
  • Posts: 840
Re: savings rates for millennials hits -2%!
« Reply #111 on: December 03, 2014, 09:05:33 AM »
Gen-Xers dealt with it with apathy, punk rock, latch keys, mohawks, leggings, divorce.

Assuming we're about the same age -- remember when we were little, and "latchkey kids" were a national disgrace and source of endless hand-wringing?

snshijuptr

  • Stubble
  • **
  • Posts: 147
  • Age: 32
  • Location: Southern California
Re: savings rates for millennials hits -2%!
« Reply #112 on: December 03, 2014, 10:03:40 AM »
I wonder how they are calculating "savings rate". I know I have racked up a good amount of debt up until this year because I have 1) gone to undergraduate school, 2) gone to graduate school, 3) bought a house. If you don't count my home equity in that, then yeah it looks like I wracked up MAJOR debt. My liquid Net Worth is around -$185k, but with home equity it is $140k.

A lot of people in the "Under 35" range are in school (ages 18-22 for undergrad and then 22-24 for masters if you don't graduate into unemployment for a couple years). When you are earning $20K at a part time job while going to school, -2% is only $400 a year in debt!

Daisy

  • Handlebar Stache
  • *****
  • Posts: 2018
Re: savings rates for millennials hits -2%!
« Reply #113 on: December 03, 2014, 09:34:38 PM »
Gen-Xers dealt with it with apathy, punk rock, latch keys, mohawks, leggings, divorce.

Assuming we're about the same age -- remember when we were little, and "latchkey kids" were a national disgrace and source of endless hand-wringing?

Yes, that was a big topic in the 80s. It didn't apply to my family, but you did hear a lot about it.

We also graduated in the early 90s during a big recession. I had to stay for graduate school because the jobs were slim pickings. Of course, I searched for and applied for a fellowship...I wasn't going to go into debt for that as I wasn't really interested in going to graduate school. It ended up being a pretty sweet deal for two years.

Chuck

  • Bristles
  • ***
  • Posts: 402
  • Age: 30
  • Location: Northern VA
Re: savings rates for millennials hits -2%!
« Reply #114 on: December 16, 2014, 05:35:19 PM »
yeah there are a bunch of us millennials who save ... i found this site last year.  i hadnt considered early retirement until then.  i always assumed i needed 5MM and was set to easily have that at 55.  but now i'm shooting for 1.5MM and retiring at 35-40.  i always assumed i needed 100K+ per year b/c thats what we make now.  i never took into account the fact i was saving + the fact i wouldnt have a mortgage etc.  i was always a saver but this site put into perspective how much i was actually spending and how awesome my current lifestyle was and that i could easily live on 50k give or take per year in retirement (note i'm not full mustachian).


Are you me?

no i'm 28 ... you're way older
I have found my people!
« Last Edit: December 16, 2014, 05:42:51 PM by Chuck »

dragoncar

  • Walrus Stache
  • *******
  • Posts: 8424
  • Registered member
Re: savings rates for millennials hits -2%!
« Reply #115 on: December 16, 2014, 07:00:05 PM »
Gen-Xers dealt with it with apathy, punk rock, latch keys, mohawks, leggings, divorce.

Assuming we're about the same age -- remember when we were little, and "latchkey kids" were a national disgrace and source of endless hand-wringing?

Yes, that was a big topic in the 80s. It didn't apply to my family, but you did hear a lot about it.

We also graduated in the early 90s during a big recession. I had to stay for graduate school because the jobs were slim pickings. Of course, I searched for and applied for a fellowship...I wasn't going to go into debt for that as I wasn't really interested in going to graduate school. It ended up being a pretty sweet deal for two years.

I also applied for a fellowship, but that damn hobbit got the job

rocksinmyhead

  • Handlebar Stache
  • *****
  • Posts: 1491
  • Location: Oklahoma
Re: savings rates for millennials hits -2%!
« Reply #116 on: December 17, 2014, 07:43:53 AM »
Gen-Xers dealt with it with apathy, punk rock, latch keys, mohawks, leggings, divorce.

Assuming we're about the same age -- remember when we were little, and "latchkey kids" were a national disgrace and source of endless hand-wringing?

Yes, that was a big topic in the 80s. It didn't apply to my family, but you did hear a lot about it.

We also graduated in the early 90s during a big recession. I had to stay for graduate school because the jobs were slim pickings. Of course, I searched for and applied for a fellowship...I wasn't going to go into debt for that as I wasn't really interested in going to graduate school. It ended up being a pretty sweet deal for two years.

I also applied for a fellowship, but that damn hobbit got the job

LOLOLOL