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How to save up for the big purchases?

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    Originally posted by scfr View Post
    Wait! I didn't ask that (the quote attributed to me). How did that happen?
    I have no idea. I fixed it.

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.


      Originally posted by Coronet View Post
      So I have a question for everyone. The general rule of thumb is to save 20% of your gross income a month, right? I was thinking about how little that truly is in actual numbers for me. My take home after taxes, 401k deductions, medical deductions, etc. is ~$3200/month (I make ~$60k/year). Of that $3200 a month I put $800 straight into a savings account which is about 25% of my take home.

      Even saving $800/month I wonder how I will ever be able to save up a 20% downpayment for a house. It just seems like so much money! I'm thinking about buying a 200-225k house in the future, so my 20% downpayment would be $45,000. If I saved for no other financial goal it would take me about 4.5 years to save for a downpayment. I know other people save for other goals like cars, vacations, college, etc. so that number just seems daunting to me.

      Do most of you guys save more than 20% of your gross income a month or does it take seemingly forever to save up for the big things?
      My savings rate is much more, however my children are grown. I have no debt except for a mortgage, which is small. Everyone is in different circumstances. The key is establishing a savings habit, you can always increase it.


        It will ensure you get the best possible product at the best possible price. I really have to discipline myself to do this. Patience isn't a virtue I was born with, but I have found that if I take my time and do my due diligence,
        Last edited by Bastille; 01-22-2011, 12:33 AM.