College Grad Starting work Full-time

[bjl584]

ok, you are good then, although it is probably not necessary to figure things out to the ten trillionth decimal place, but hey, nothing like being thorough

[sstarch3]

hehe, I just put it into google doc's spreadsheet.
So i change one number and it recalcs all of my information
So the extra decimals are no extra effort. Removing them would be more effort haha

[sstarch3]

last call for any more advice I'm up for anything Thank you for the advice so far

[InDebtInDC]

A less complicated way is to spend as little as you possibly can, contribute up to the maximum for your tax exempt retirement contributions, both traditional and IRA, and apply the remainder of your disposable income, if any, to debt and savings as appropriate.

[sstarch3]

that's a interesting take on savings. Definitely the opposite of the normal person who just spends everything and saves the rest .

I do prefer moderation though, I could live the next 40 years of my life and save everything then retire in essentially "riches", but I have no guarantee I will make it that far.

So I would prefer to save enough to live just as well as I do when I retire instead of just saving everything.

I do believe Moderation is key.

[InDebtInDC]

I do prefer moderation though, I could live the next 40 years of my life and save everything then retire in essentially "riches", but I have no guarantee I will make it that far.

So I would prefer to save enough to live just as well as I do when I retire instead of just saving everything.

I do believe Moderation is key.

If you put away the maximum amount for 401(k) and Roth IRA each year, that's almost $20k. If you can manage to squeeze in another $500 each month into savings you'll be at $25k per year. That's about $30k of pre-tax earnings each year earmarked for savings.

While that sounds like a lot, if you can pull a $50-60k job, and learn to live modestly, I think it's totally doable.

Earning a modest 10%, you can end up with $1 million in a little over 15 years. While $1 million may not be enough to retire on, if you maintained the same level of contribution and earnings for another 5 years or so, you'll clear $2 million easily.

Do you want to save modestly and work 40 years, or do you want to save aggressively and retire in 20 years?

And by retire I mean you can do anything you want without having to work provided you don't live above your means.

If you kick the bucket early you can always leave the money to your family or charity.

[Snowgirl]

I do prefer moderation though, I could live the next 40 years of my life and save everything then retire in essentially "riches", but I have no guarantee I will make it that far.

So I would prefer to save enough to live just as well as I do when I retire instead of just saving everything.

I do believe Moderation is key.

Do you want to save modestly and work 40 years, or do you want to save aggressively and retire in 20 years?

And by retire I mean you can do anything you want without having to work provided you don't live above your means.

If you kick the bucket early you can always leave the money to your family or charity.

I agree with sstarch3 on that, saving/spending should be more about balance. I you save so aggressively that you cut out most enjoyment, focusing on your retirement as the goal for having fun, and you die or become invalid before retirement, you will have nothing to show. You better use some money on "fun" things/activity, and retire 5 years later. Try to find a job you like so that it will become an asset to your life and not only a cash generating obligation.

Right now we save 18% on our income for retirement, while still going on nice vacations and having a new car. I won't give up on that right now so I can retire at 50 instead of 55, and live a miserable, stressful life until then. Who knows if I'll be able to travel all around the globe at that age? If I can, I'll do it, but otherwise, all my saving effort went for nothing.