Post # 1
I read so many posts about budgets and how much people set aside for retirement, even if they are in their early 20’s.
I am 26 and I absolutely have no money in savings, let alone retirement. I’ve always lived paycheck to paycheck pretty much and haven’t been able to really save. I plan on building an emergency fund and contributing to retirement as soon as I get a decent paying job.
But I feel like a loser :(. I’m 26 and I have no money set towards retirement. SO is 29 and he also has not saved any money for retirement. Sigh. I worry about our future sometimes. I don’t want to be in our 70s and still working, living paycheck to paycheck.
Is there anyone else in the same boat? Help me to not feel like such a loser :p
Post # 3
I’m 25 and still haven’t put anything toward retirement. I’m finishing up my Master’s right now so I literally live paycheck to paycheck and it sucks. :/ My Darling Husband (hes 31) works but puts the bare minimum to his retirement because his job doesn’t pay super well. We know once we’re both in better jobs we can set aside more.
Post # 4
@LadyBlackheart: meh..I do have a retirement account through my job, but I honestly think that I’ll still be working well past age 65! I have about 65K in student loans that arent’ going anywhere no matter what I do, so I’ve just decided not to stress myself out thinking about it. Honestly, I’d like to take some money out of my 401k and use it to pay down my credit card, but I know that everyone (my SO included) says that’s a bad idea, so I won’t do it. My reasoning is that I need the money..it’s there..and the rate that I’d pay myself back is lower than my CC interest.
So anyway, yeah, even though I have a “decent” paying job and 401k, between my car payment, student loans and household expenses (SO pays the mortgage), I’m pretty much paycheck to paycheck as well. Being an adult stinks! I do wonder how all of these other bees are doing it though. I”m impressed 🙂
Post # 5
I don’t have a retirement account, and I’m in my mid-20s. I’m also in graduate school though, so I feel like I get a semi-pass for that, and I do have savings.
I also feel like a loser. But it’s ok, because at least we are working towards contributing, instead of just ignoring it completely.
Post # 6
@LadyBlackheart: I did not start any retirement accounts until I got my salaried job at age 24-25 (I don’t remember exactly how old I was). And it was even a FREE retirement account, like they put in 14.2% of my salary into a 401a – just as a perk! It wasn’t until a few more years where I opened a Roth and put away $100.
However, I’m 37 now and my H and I make it a priority with early retirement as a goal.
If I have any advice for you, put something away. Open a Roth at least. Compounding interest is a beautiful think you an dneed to get on that! That means cut out cable, lower your cell plan, raise your insurance deductible so your premiums are lower. Eat beans and rice for 2 days a week. Anything to find an extra $50/month.
If I could share my interest diagram you would be shocked. It shows a 20 something putting away $2,000/month for 10 years VERSUS a late 30s putting away $2,000/month for 2 years. In the end the person who put money away at a 20 year old ended up with TONS more money just due to interest, and had the smaller out of pocket contribution.
Post # 7
I actually have two retirement accounts (one is optional and one is provided by my employer), both of which take money out of my paychecks before I even see it. The easiest way to save money is to pretend like the money you’re saving was never a spending option to begin with. Consider talking to a financial planner who might be able to help you set something up.
Post # 8
@LadyBlackheart: Nope, we don’t have retirement accounts and we’re 26 and 27. However, we combined finances this year and got serious about saving. We paid off our credit card debt (small, around $2000) and are building an emergency fund now. We intend to open a Roth IRA after the wedding, as my dad and stepmom are giving us a fairly large amount of money. We will only be able to contribute around $100-200/month to our IRA after that, as we’re both grad students living in NYC, but I figure it’s better than nothing!
It’s never to late to start, I think. And no amount of money is too little. I think you only need, like, $500 to start a Roth IRA.
We use Mint.com for our budget–it was pretty tough to stick to the budget at first, as we were used to kind of doing whatever we wanted (within reason, of course), but it’s WAY easier now. Honestly, it’s hard to imagine what we even used to spend so much money on.
Post # 9
We have about 7K in our larger savings, but that’s nothing really.
We really can’t save like that right now! We just can’t afford to 🙁
Post # 10
@LadyBlackheart: I’m in my 30s and I have quite a few friends that are unable to save for retirement due to large student loans, high rent/mortgages, etc., so I don’t think it’s that uncommon. You have to understand that those people on this, or any, website that are willing to talk about retirement/savings aren’t going to be an accurate representation of the population. That being said, I would highly recommend that you talk to someone about starting a retirement fund as soon as you’re able to.
Post # 11
Nothing here. I’m still paying off student loans, unfortunately. But my financial planner is setting me up a retirement account that I’ll start investing in shortly. At 46, I’ve just entered what I’d call the money-making part of my career (the old saying is law is not a career for the short-sighted, and it’s true…most of us don’t get stable until 20 or so years into it). While I have worried in the past that I didn’t have that savings already started, I’m also comfortable that this is work I can continue to do well into my 70s without killing myself. So… it’ll all work out. 🙂
Post # 12
Post # 13
I have but I didn’t get started until I found a job after grad school, and I was a few months away from 27 (29 now).
Do you have a full time job? We are required to put a certain mimimum into ours at every fulltime job I’ve had. I put in the minimum and put in extra into a separate defered compenstation type of plan at my old job (you couldn’t put in more than the minimum which is why they offered a second, optional plan). My current employer allows us to choose whatever we want to put in (minimum 5.5%) and I put in 10% right now (and employer puts in 8.5%). I plan on increasing my contribution over the next few years.
I take retirement savings into account when making my budget (rent or mortgage being a big one). Meaning I take retirement out before I get even have a chance to get into a rent or mortgage that would not allow me to contribute.
Put it in right away, you can’t miss money you never receive. If you start getting that $ it’s harder to say goodbye to. I’d find a way to start one if you can. It’s not too late, starting as soon as you can is better than nothing!
Post # 14
When I was teaching, you had to have a retirement account through the state. When I left that job, I could have either taken the money and run (with a hefty penalty) or rolled it over into another retirement account with no penalty. I obviously chose to roll it into a new account, but I was lucky because my company offered me that as a benefit. A lot of my friends don’t have retirement accounts because they can’t get them through work (they’re not on salary or don’t qualify for benefits or whatever). I’m glad I have it, but I don’t think anyone in their early to mid 20s is really going to be screwed in the end if they wait a bit to open one up.
Post # 15
@LadyBlackheart: I do, but really only because I never had to think about it — as a teacher in PA, 7.5% of my paycheck goes directly into a retirement fund. I have no idea whether I’d have started saving in my 20s if I hadn’t been a teacher. I like to think I would have, but I don’t know.
Do you have direct deposit from your job? If you do, I recommend opening an online savings account into which a certain percentage of your paycheck can be deposited each time you’re paid. It doesn’t have to be a lot to add up eventually. That’s at least something!
Post # 16
I just started (next month) to put money into a 401k. I am 32 years old and feel very behind the ball, and worry that I will not have enough to retire at all.