26 years old with $32,000 in savings.....a good start?

[Charm14]

I ran across this article from the Globe and Mail (Canadian paper) today:
http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/hes-26-with-32000-in-savings-heres-how-he-did-it/article20099792/

As per the title, it's about a 26 year old who has managed to pay off $18,000 in student debt and then save another $32,000. It goes into some details about things he has done to get to this point, like not eating and drinking out all the time, not buying a lot of gadgets, sharing an apartment, etc. Plus, he still does things that mean a lot to him, like taking a trip he has always wanted to go on. Finally, an article in a mainstream paper that doesn't portray a frugal person as self-deprived and fun-hating! Overall, I thought it was a nice light introduction to being frugal (Mustachianism-lite?), presented in a pretty good way. If I had read this before MMM, I would have thought it pretty amazing. Now, I'm thinking...great start! But why not save 50%+??? :)
Any thoughts?

[sheepstache]

Wow, surprisingly positive comments.

[Melody]

I think it's a good article as he's very "average" (i.e. he went to university, had student loan debt and doesn't have an overly useful degree etc) and he's still saving. 50% might not be achievable on his (assuming) entry level salary in (assuming) high cost city, but I think he'll get there in time.

I'm 25, net worth is circa $115K after having paid out $23k of student loans (and I haven't had good luck by buying into a property boom or picking a winning stock or getting an inheritance, this is all retirement savings and normal savings through good old fashioned frugality like in the article.) But it's better to write he article about someone with a lower income/less marketable degree so more people can relate to it. 50% on a high salary is easy... my challenge is to it 65%!

[sheepstache]

Agree, the relatability is important. I like that there are still a few people being like, 'well, he couldn't do it in Toronto or some other expensive city.'

[soccerluvof4]

Good story BUT if his financial planner told him he can retire in 40 years if he continues to save aggressively that puts him at 66. I think with his discipline he should dump the FP , do it on his own and he will probably get there a lot sooner.

[slugline]

Good story BUT if his financial planner told him he can retire in 40 years if he continues to save aggressively that puts him at 66. I think with his discipline he should dump the FP , do it on his own and he will probably get there a lot sooner.

I didn't see Mr. Nettleson's current income explicitly stated, but I did notice that he's a writer with a journalism degree. And we saw a mention of homeownership and children as possibilities; there's no assurance that his future potential partner would be Mustachian. Early financial independence isn't a given for everyone, even if they are pretty good savers. His other life choices very well may make a 40-year career necessary.

[Cheddar Stacker]

I'm 25, net worth is circa $115K after having paid out $23k of student loans (and I haven't had good luck by buying into a property boom or picking a winning stock or getting an inheritance, this is all retirement savings and normal savings through good old fashioned frugality like in the article.) But it's better to write he article about someone with a lower income/less marketable degree so more people can relate to it. 50% on a high salary is easy... my challenge is to it 65%!

Very impressive Melody, even with a high salary. I'm in the same boat that my ~45-55% savings rate is not that impressive considering the wage. I hope to reach 65% as well, good luck to you.

[DollarsAndDissonance]

Great article for easing readers into the concept of saving, and his situation is very relatable, as you said.

The article doesn't say how long he's been saving or what his salary is, so for all we know, his savings rate could be 50% or higher.  He's banked $50k (when you include paying off his student debt), he's probably only been working 2-3 years, and I'm guessing that an entry-level writer doesn't make more than $45-50k.  That could easily put him anywhere between 40-70% of after-tax income.

Nice to see a story about this without a barrage of angry comments.  Probably because there's enough evidence of certain indulgences (e.g., daily coffee) and because there's no mention of early retirement.

[Davids]

Good story, good start but so much more he can do!

[The Fake Cheap]

I also saw this article and liked the positive tone, and how the writer didn't try to put a negative light on.  However when I read the article 2 days ago, there did seem to be a fair share of negative comments.

[pichirino]

Impressive for the average guy/girl.
I bet the comments wouldn't be so positive if this guy was saving 75% of his income.
I could only imagine the many options for luxury I could have with a 20% savings rate.