You did really well for yourself Lov_mkitchen! I applaud anyone who is debt free!

For those making a 6 figure income($100k +), saving like crazy and living below their means....they can retire much earlier and live a nice life .......having everything they need. It's good to watch shows that point out that this is possible, So many people don't plan ahead......

I usually watch Suze...she gives some great advice. I only wish one of my kids would watch! They make great salaries, but the more they make, the more they spend. Emergency fund?...they think that is what the plastic is for!

My grandson graduated from college recently and was fortunate to land a great job and for his graduation gift, I gave him a nice check but told him I would like for him to put it into a Roth 401K to add to each month for his retirement fund. It is too bad the parents have not set a good example of saving for a rainy day instead of having to "keep up with the Jonses".

Back in the old days, an 18 yr old putting away $100/mo at compounding 10% interest would be quite wealthy.

phoggie, My daughter and husband are the same. I just shake my head. Pay something off and have that money plus the interest to use for the next purchase but they don't. Borrow, borrow, borrow. I could just cry.

My son is 30 and he already has a nice retirement going for him and his family~~he learned from his dad to join into any plan they have at your work. he was very lucky in the begining when he was single to work at a place that matches what you save up to whatever.
He went over to see our SIL who is a wealth management planner. He sat down with our son and helped him plan out a few things, telling him how to save and how to have a liquid flow for emergencies being a youn family and all. I am so proud of my son for doing that~~~now my younger DD she does not get it;(

Lov.... I have another DD and SIL and although these girls were raised alike, one is a spender and other is a saver. The saver and DH do not have the luxury of having high paying jobs but they get along with no cable TV and both of their vehicles have over 250,000 miles on them...but their home is paid for, they have no debts, give 10% to the church deducted from their checks, send their children to private schools, kids play in select soccer teams, and take family vacations...even it means in a tent! They make so many memories and that is why they sacrifice so much to do so. They have taught their children to save also....picking up jobs life guarding, officiating games, mowing lawns, shoveling snow, etc. Their oldest just started college...and told me he had $15,000 saved from work and birthday money to put toward college..I was so proud of him and did not mind adding to his stash of cash. He was so intent on getting a. 4.5 GPA, so he would qualify for a great scholarship.

Other one...no emergency funds, pay everything with plastic, have every tech gadget that comes out, their kids never have to work, 100% college paid by parents, has to have new car, pickup, and now a motorcycle! Their house should have been paid for years ago, but keep getting it refinanced, etc.

How could I have raised such different daughters?....but love them both the same! I think it must have a lot to do with the men they married.

"I think it must have a lot to do with the men they married."

Yes. My DD was such a penny pincher when she was young and then she married a spendaholic. She hands over her paycheck and he spends it. She has no backbone and does not participate in any spending decisions/plans; is oblivious to what is going on around her. A major project they have going on now required them each to borrow from their 401. I know they will never get it paid back because they treat those accounts like a savings account.

I never did manage to save a whole lot while I was young. Oh, I always had enough for necessary car repairs, etc., but a future retirement plan? Nada.

I retired at the end of last year, and my net take home pay now (I have federal and state tax withheld from my state retirement as well federal tax withheld from my social security) is more than my net pay was when I was working! (When I was working there were taxes, union dues, health benefit premiums, parking, etc., withheld.) And I've put a little more than $12,000 into savings so far this year, so I guess I'm doing ok.

Let's see ... $500./mo is $6,000.00 per year, which is $150,000. after 25 years, without allowing for any return on the investment.

I bought shares in a Canadian bank 47 years ago, at $4.17 each, paying about 10 - 12 cents per year, at lower than usual tax rate. About 7 years ago could have sold 'em for $107., and they were paying $3.08 per year, at even lower tax rate, with an increase of 40 cents that fall, almost 10% of my originally invested amount.

They got into financial difficulties, related to the money mess about that time, price per share dropped to $40.00, dividend rate stayed flat for 4 years, recently grew to $4.00 annual rate. If I can stay alive for a few more years ... each share'll likely pay me $4.17 each year, what it cost me back 47 years ago.

Living paycheque to paycheque ...

... ain't so hot if your factory burns down and it'll take at least a year, probably more, to replace it.

Or ... you get permanent layoff.

Plus - don't forget that fewer and fewer people have retirement plans.

And we've been living longer.

Looks like a need for more available assets, down the road, for most folks.

ole joyful

I'm sure Suze, et al. had to have some "jumping off point" to get their point across. My takeaway from that - and I didn't see the program - is putting SOMETHING away for the future - no matter how small a sum - is a good habit to get into.

And yes there are always reasons, some very valid and some not so valid, why this isn't always possible. Probably common, but the realization in one's 50's and 60's that there's no nest egg must be frightening.

If we don't boss our money ... more than likely it'll boss us!

And our bossing responsibilities take place in the near term ...

... and it's bossing of us takes place later, should we have done a poor job in the meantime.

ole joyful