(Closed) POLL – Savings & TTC

posted 5 years ago in TTC
  • poll: How much did you have in savings, or are you planning to have in savings, pre-baby
    0-5K : (33 votes)
    24 %
    5-10K : (23 votes)
    16 %
    10-20K : (18 votes)
    13 %
    20-30K : (21 votes)
    15 %
    30-40K : (10 votes)
    7 %
    40-50K : (7 votes)
    5 %
    50+K : (28 votes)
    20 %
  • Post # 33
    Member
    1382 posts
    Bumble bee
    • Wedding: September 2014

    I put 50,000+. We have about 50,000 in savings and investments, and own our two cars outright. We have no debt. BUT we are VERY unusual. We will be buying a home in about 18 months, so we’ll have a mortgage then. I would be comfortable with less in savings if my husband were working, I don’t think you need as much as we have saved. My husband is finishing med school right now, so I feel our savings help give us a cushion because he doesn’t have an income at the moment.

    Post # 34
    Bee
    1902 posts
    Buzzing bee
    • Wedding: June 2012 - Franklin Plaza

    SunshineSmiles:  This does not include what we have invested in our 401k, IRAs, other various investments, etc. For us, that is not to be touched until a certain point in time (i.e. retirement) so it doesn’t really “count”. What I wrote in my post is strictly money that we have now that we can access at any time.

    That being said, I agree with others that we have above and beyond what we really need to have a baby. Personally, I would have been fine with $10k in the bank, but Darling Husband is a stickler and wanted to save some more which is never a bad thing!

    Post # 35
    Member
    7310 posts
    Busy Beekeeper
    • Wedding: October 2011 - Bed & Breakfast

    howtobeawife:  Awww thanks. 🙂 We are hopeful.

    SunshineSmiles: I answered based on the money chilling in our savings account. I didn’t include any of our investments, as those are not to be touched until we retire.

    Post # 36
    Member
    1669 posts
    Bumble bee
    • Wedding: August 2014

    We just started TTC and not counting retirement, 401k etc we’ve got around 45k.

    The savings is not the point here though – I agree with other posters that you should attempt to eliminate (some) debt before you start trying. Not all debt, but some. Those monthly payments will suck you down slowly. 

    Darling Husband and I only have a mortgage as far as debt goes. We are selling our apartment in the city and relocating to a more cost and family friendly area at the end of this month. 

    Our goal before having a baby is to have a low house payment, and for our only debt to be our mortgage. We paid for both our cars in cash (buy used, guys!). That way, if unexpected expenses come up, or if I decide to stay home after we have a baby, we won’t be under so much strain. 

    We’re going to buy less house than we can afford, basically. Which is always a good idea but I know from experience it’s hard to say no to an upgrade.

    Post # 37
    Member
    323 posts
    Helper bee

    It amazes me how much money people keep in their savings! I guess it depends on job security and bills, but I keep almost everything in investments.

    I always thought I was risk averse but damn… maybe I’m not? 

    Post # 38
    Member
    213 posts
    Helper bee
    • Wedding: July 2014

    georgetownbee:  that’s what I was thinking too!! Obviously everyone has their own plans but our financial advisors basically told us that if the interest rate on our debt is higher than that on our savings account then we are losing money each month by not paying off the debt (student loans). So we tend to pay off debt rather than hang on to extra savings, and invest the rest in things that have a better yield than a savings account.  

    Post # 39
    Bee
    1902 posts
    Buzzing bee
    • Wedding: June 2012 - Franklin Plaza

    georgetownbee:  SunshineSmiles:  Maybe we are paranoid but Darling Husband and I really like to have at least 6-8 months worth of expenses in the bank in case one of us (mostly him since he is the breadwinner) loses our job. We would rather lose money by not paying off our loans right away in exchange for the security of having the funds available to us in case of an emergency. It might not be the smartest way, but we are happy with our retirement goals and with our current debt/income ratio.

    Post # 40
    Member
    4029 posts
    Honey bee

    georgetownbee:  One of the best ways to ensure long term financial security is to have some kind of safety net. While we still have debt that we are agressively paying down, we keep 6 months of expenses in savings because in this economy, very few jobs have absolute job security. I would hate to find ourselves unemployed and unable to pay any bills. We could take our savings account and eliminate a good chunk of debt, but what happens if the next month we lose our jobs (we work at the same place)? Then we would lose our home. That seems too risky to us. In comparison, we could defer our student loans and fall back on minimum payments if necessary.

    We are also putting money into investments as well. We consider our IRA’s to be a form of a safety net, but keep in mind those can also lose money. So an “absolute” safety net is a 100% easily liquated account that isn’t tied to the market. Does it net you large monetary gains? No. Our is “high interest” for a savings account, but it’s only 1%. But, it does ensure we would be able to stay afloat for 6 months.

    Post # 41
    Member
    4029 posts
    Honey bee

    SunshineSmiles:  When I am referring to savings, I am talking about accounts that are easily liquidated and accessible. So basically, general standard, high interest savings accounts. I don’t include 401k/IRA contributions in an calculations, unless I am talking about net worth. Not sure about other people though.

    Post # 42
    Member
    323 posts
    Helper bee

    bmo88:  That certainly makes sense. Since I don’t have children or an enormous mortage at the moment, $50k would be completely wasted in my savings because I barely spend half of that in an entire year. But I can see why people who have larger expenses would need/should have a bigger safety net. 

    I currently put about 70% of what I make into investments, but once I need to pay for childcare or a bigger mortage I will definitely need to reasses. Compound interest is just SO alluring at the moment! 

    Post # 43
    Bee
    389 posts
    Helper bee
    • Wedding: May 2012 - El Faro Convention center, Aguadilla, Puerto Rico

    Our finances are all over the place because we’ve wanted to do so much in such a short period of time. We graduated college/got married in May 2012 with 0 savings, a small college loan and lucky enough to both have jobs.

    Year 1 – We moved to Cincinnati just one month later and bought our first car (0 down at a ridiculous 9% interest rate) We bought a house 8 months later (it’s 1/3 of what we were approved for). In those 8 months, we saved the 3.5% as the down payment for our FHA loan (Interest rate of 3.2% and my company paid for the $10,000 in closing costs, making buying a house better than renting at the time).

    Year 2 – We slept on an inflatable matress for 6 months because we had no furniture in the house. We spent the year saving up money and spending half of it on furnishing the house, doing repairs and on a second car now that my husband had a new job. 

    Year 3 – We started the year with about 10K in savings but really wanted to travel before starting to have kids. in a very #YOLO moment we emptied our savings account for 2 amazing international trips later in the year. Unfortunately as soon as we did that everything happened: water heater broke, air conditioning broke, emergency visit back home to visit our family etc. We had recently gotten our first credit card for the points (We put all our travel expenses on the card and emptied our savings into it, immedietely paying it off) and we ended up using our cc to pay for all the emergency stuff, making us 10k in debt where we now are. 

    We are aggresively working on eliminating that 10k in debt (should be done by August) and then start aggresively saving. We pushed back our TTC from May 2015 to September to make sure the cc is paid off but we feel comfortable starting to TTC with no savings. Even if we get pregnant on the first try, we still have 9 months to save (We could prob reach about 15k – 20k in that time) and I bet nothing can motivate someone to save quite like an inpending child. Most people would probably postponing kids (especially given our ages – 26) in order to save more but both of us were raised on much less and it’s super importnant to us that we have kids soon, so we’ll make it work 🙂 

    Post # 44
    Member
    1382 posts
    Bumble bee
    • Wedding: September 2014

    I should clarify that by “investments” I was counting only mutual funds that are easily liquidated, not retirement savings accounts.

    Post # 45
    Member
    4029 posts
    Honey bee

    georgetownbee:  Before we purchased our home, we barely had any funds in our emergency savings acount (maybe $2,000) because our expenses were so low. We used to just put money in investments and save for big expenses (vacations, wedding). Now that we own a home, it’s terrifying to think of having to go through a forclosure. It forced us to re-evaluate our financial positioning.

    Given your situation, it makes sense to air on the side of investing the money.

    The topic ‘POLL – Savings & TTC’ is closed to new replies.

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