Money related poll

[misshark122]

I read this article the other day and thought it was pretty interesting. And it made me wonder if this is representative of the fashion board - where we have ladies that like to shop

money.cnn.com/2012/06/25/pf/emergency-savings/index.htm

so I thought I'd do a poll so it's anonymous.

Highlights of the article:

- only 25% of Americans have 6 months expenses saved
- 49% of Americans don't even have enough money saved to cover three months of expenses
- 28% don't have any cushion whatsoever

[315bride]

You know, I sort of placed my own constraint on this poll. I answered for myself only. DH and I generally keep money separate. But that's really another poll entirely, really.

[Deleted]

We have about 4mos worth of expenses in a savings account that we can access easily with no penalty. The rest of our savings would be harder to get to and there would be a penalty associated with withdrawal, but I'm fine with that because those accounts are drawing more interest.

[Deleted]

We keep six months liquid, but could get more if we really needed it.

[joanis018]

I was going to say "a lot more than that!" but then I actually thought about our finances and lowered it down to 6months. But that's if we keep shopping/spending like we do now. We're really good at saving, but it's kinda crazy to see that that lump in our bank account wouldn't last us a year. We could definitely live on one income if we needed to. I would just have to stop shopping :-(

[misshark122]

Jun 28, 2012 11:53:27 GMT -5 @mavjen said:

We are in our early 40's without any kids/dependents. Although I am a SAHW, we both have post graduate degrees and earned and saved (for me), earning and saving (for MH) a significant amount since we married in our late 30's. We both hold the philosophy of living well within your means and invest/save for your future. If we end up without kids, MH is going to retire between 50 to 55 years of age. I think all of the aforementioned facts are all factors that we are in a good financial place.

We believe how much you spend is as, if not more, important than how much you earn.

I totally agree with this! My husband is in the military and I work in social work, so we are definitely not raking in the dough. However - we've saved a lot of money in the 8 years that we've been together! We've also spent alot - traveled a lot internationally, and I pretty much buy what I want (to an extent. I don't just shop like money grows on trees)... so it confuses me when people who make as much or more don't have money saved like we do. I just don't understand how because it seems like they aren't taking the trips we take, or doing the shopping that I do, and they make more to start with... (obviously I'm talking about specific people I know in "real" life) It's just interesting to me.

[Deleted]

We have about five months of funds. DH understand savings accounts so it all just sits in our checking.

[joanis018]

Jun 28, 2012 12:05:00 GMT -5 misshark122 said:

Jun 28, 2012 11:53:27 GMT -5 @mavjen said:

so it confuses me when people who make as much or more don't have money saved like we do. I just don't understand how because it seems like they aren't taking the trips we take, or doing the shopping that I do, and they make more to start with... (obviously I'm talking about specific people I know in "real" life) It's just interesting to me.

yes!! this!

[joanis018]

Jun 28, 2012 12:12:49 GMT -5 ditzydi said:

DH understand savings accounts so it all just sits in our checking.

Wait, what? Can you clarify?

[misshark122]

Jun 28, 2012 12:22:16 GMT -5 @mavjen said:

MsHark--there's a good book called the millionaire next door. It's been out go a long time but some of the principles still hold true. Spending the bare minimum and not keeping up with or trying to outdo the Joneses is what help makes one amass wealth.

Also, one could dismiss a lot if people by saying oh they live beyond their means, but you don't know what their financial situation is. Maybe they suffered a major illness or their kid has a serious medical condition or they're supporting a parent, whatever. I could care less, it's their business.

This is all very true, Mav. I'm not speaking about people I'm not close with though. It's people whose business I just happen to know. I definitely wouldn't try to speculate about strangers or acquaintances because I really don't know their stories at all.

[Deleted]

Jun 28, 2012 12:29:28 GMT -5 @mavjen said:

They should really teach fundamental/basic home economics & investing in high schools everywhere and make it a mandatory course.

I have said for a long time that high school students who can't balance a checkbook should be denied graduation.

[misshark122]

Jun 28, 2012 12:29:28 GMT -5 @mavjen said:

Oh, gotcha MsHark. Yes, some people can cause head scratching.

They should really teach fundamental/basic home economics & investing in high schools everywhere and make it a mandatory course.

I agree with that!

I have to say that I know I was very fortunate - my parents taught me well when it comes to finances, and I never had any debt to worry about. DH also is very responsible with money and never had any debt. Right there gives us a leg up on people who were maybe were irresponsible with money when they were younger.

[mrssavy42112]

I’m in the 3 month mark right now. We would have more if it wasn’t for our wedding 2mo ago. A lot of times I feel really far behind others, but then I have to remind myself of the circumstances. I graduated in 2010, later than most my age w/ a BA, so I’ve only been working FT for 2 years. I did live above my means a bit during college & I had a cat get sick & need several thousands of dollars worth of procedures. That set me back. My only debt now is my student loans & a few K left on my car. I saved aggressively for the wedding. I know that we’re doing good considering all that, but I always wish we had more of a cushion.

[xokell2]

Luckily my husband is way better than me at this sort of thing and keeps us well prepared.

I'm also extremely lucky that we live enough below our means (mortgage, cars, etc) to survive off of one income. It's difficult for me to save lump sums of money because I'm paying school in full as I go, but my husband upped what he contributes to make up for this.

It does seem like we all spent freely around these parts but I like to think of us as a financially responsible group. We mostly rave and discuss bargains and Amazing deals.

[janegold]

Jun 28, 2012 12:42:59 GMT -5 @tambcat said:

Jun 28, 2012 12:05:00 GMT -5 misshark122 said:

I totally agree with this! My husband is in the military and I work in social work, so we are definitely not raking in the dough. However - we've saved a lot of money in the 8 years that we've been together! We've also spent alot - traveled a lot internationally, and I pretty much buy what I want (to an extent. I don't just shop like money grows on trees)... so it confuses me when people who make as much or more don't have money saved like we do. I just don't understand how because it seems like they aren't taking the trips we take, or doing the shopping that I do, and they make more to start with... (obviously I'm talking about specific people I know in "real" life) It's just interesting to me.

Maybe they have student debt.

My thoughts exactly. If I could put all the money I repay towards student loans into a savings account, we'd be so far ahead of where we are right now.

[misshark122]

Jun 28, 2012 13:16:38 GMT -5 janegold said:

Jun 28, 2012 12:42:59 GMT -5 @tambcat said:

Maybe they have student debt.

My thoughts exactly. If I could put all the money I repay towards student loans into a savings account, we'd be so far ahead of where we are right now.

The people I was specifically thinking of when I mentioned that don't have student debt, but I know student debt is a real issue for many people in trying to save money. I have a friend who makes a lot of money but she has to pay sooo much student debt down! it's like another mortgage payment each month! ha.

[janegold]

Yup. The amount I pay towards student loans each month is literally more than our rent. And I live in a HCOL city.

[misshark122]

Jun 28, 2012 13:20:17 GMT -5 janegold said:

Yup. The amount I pay towards student loans each month is literally more than our rent. And I live in a HCOL city.

This is crazy! Do you think it was worth it?

[janegold]

I don't know...I wouldn't have my law degree without it. But part of me wishes I had chosen to go to a more affordable state school rather than an elite school in a big city where I also had to take out loans for living expenses. But then, if I hadn't moved for law school, I wouldn't have met H either.

I don't feel like I'm at the point in my career yet where it was worth it. But I think it will be someday.

[janegold]

Also, Tamb, how did your SL payments go down? Did you guys just manage to pay off some of the loans altogether? Switch to a different repayment plan? Consolidate and get a better interest rate? I keep thinking I should probably consolidate...

[ESquared423]

We have just about exactly 6 months of expenses in liquid savings, and it will probably stay like that for the next year while we VERY aggressively pay off our student loans, which is our only debt. Then all of that money will be ours to max out our Roths and beef up our savings. My H is military and I work part-time in the social work field (hollaaa misshark!) and I am very satisfied with how we have managed our finances since getting married last year.

[janegold]

Jun 28, 2012 15:13:58 GMT -5 @tambcat said:

Jun 28, 2012 15:04:23 GMT -5 janegold said:

Also, Tamb, how did your SL payments go down? Did you guys just manage to pay off some of the loans altogether? Switch to a different repayment plan? Consolidate and get a better interest rate? I keep thinking I should probably consolidate...

The interests rates went down on some of them, and we paid off a couple. Mine are down $200 from when I first started paying them off, and H's are down about $100.

That's great! $300/month adds up!

[pooh8402]

Jun 28, 2012 11:48:05 GMT -5 @amydrinkie said:

We have about 4mos worth of expenses in a savings account that we can access easily with no penalty. The rest of our savings would be harder to get to and there would be a penalty associated with withdrawal, but I'm fine with that because those accounts are drawing more interest.

similar to this, but we have about 2 months liquid (in our easily accessible checking account) and about 9-10 months in an online interest-bearing savings account that we can still draw from 3x/month with no penalties if necessary.

[pooh8402]

Jun 28, 2012 13:16:38 GMT -5 janegold said:

Jun 28, 2012 12:42:59 GMT -5 @tambcat said:

Maybe they have student debt.

My thoughts exactly. If I could put all the money I repay towards student loans into a savings account, we'd be so far ahead of where we are right now.

omg this too. I *was* ready to buy another house immediately after selling our current one, but instead, I'd rather rent for another couple of years so I can seriously pay down my student loan debt.

[sierramist03]

Unfortunately we don't have any because we used it DH has been unemployed for almost 10 months. That might be factoring into the poll our unemployment rate here is about 4% I think

[fashionx]

Our savings is lower than I'd like, we have about 2 months currently saved. However last year we paid for our entire wedding ourselves with cash saved, and I am currently snowballing payments to pay off our car this year, and then I also have student loans. We don't have any credit card balances, and use one card sparingly which is paid off immediately. If not for the loans we would certainly save more. Any personal purchases/shopping is paid for in cash and doesn't take away from our other goals.

[hz80408]

With savings accounts that H inherited from deceased grandparents; we have a comfortable amount in savings. However, we don't touch that. We rent, so eventually a portion of that money will go towards a downpayment.

In my own personal savings, since I've starting working, I have enough to get us by for probably 3 or 4 months.

I should also add that we're in Chicago, so HCOL.

[photon]

we have 9 months liquid, but i would like to have 12. you can never predict what could happen in the future in this world, losing jobs, medical expenses, etc., so i like to be prepared.