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Whats a good amount to have in savings for a 23-24-25 year old in college?

Discussion in 'The Okie Corral' started by Eurodriver, Aug 18, 2012.

  1. Eurodriver

    Eurodriver

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    Full time college student - totally independent (I live my by myself and don't receive a dime from mommy and daddy)

    I have a 5k motorcycle note, but my credit score is great and the interest rate is stupid low. Other than that I have no debt. (No student loans, no credit card debt, etc)

    So - just a quick question (tisk tisk tisk)

    What would you say is a good amount to have in savings?*

    *what would be the threshold to pay off the motorcycle in full and still have a substantial savings? I.E. If one has $5500 in savings, should he pay the $5100 motorcycle note in full? What about $10,000

    Keep in mind when answering that I am not a privileged rich suburban white kid and ridiculous numbers like $50,000 will be disregarded.

    Edit: I ask this because I want to know at what point is it safe to say "Ok, savings look good - I can start blowing money on useless ****"
     
    Last edited: Aug 18, 2012
  2. tadbart

    tadbart duuuuude.

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    you haven't "made it" until you own a couple Thai teenage hookers.
     

  3. NeverMore1701

    NeverMore1701 Fear no Evil Platinum Member

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    FiFY.
     
  4. USMCsilver

    USMCsilver Boat Life ©

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  5. XDRoX

    XDRoX

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    IMO there's no amount. Just a percentage that you should be putting away every month.

    You need to decide on a percentage of your income for savings. If its 20%, then every month 20% is what goes into savings.

    In the same regard figure out a percentage of "blow money."
    Money that you can waste on fun stuff.

    If you have a stupid low interest rate on your bike I'd pay it off monthly making the minimum payments.
     
  6. USMCsilver

    USMCsilver Boat Life ©

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    Take your bike payment/rent/electrcity/cable/phones/gas/water/sewer/internet and average out your monthly grocery bill and multiply that by 6.

    That's a safe number.
     
  7. certifiedfunds

    certifiedfunds Tewwowist

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    If you're a college student with ANY savings, you're ahead of the game.

    What's about the worst realistic money-draining emergency you could think of? Save that amount and add 10%.

    Otherwise, what's your source of income? What are your monthly expenses? Then apply the 3,6,12 month rules of savings to cover your living expenses if something horrible happens.

    No science to this. Just figure out what your security blanket needs to look like and move on.
     
  8. Annoyedgrunt

    Annoyedgrunt Dry Heat my ASS

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  9. MasterShake

    MasterShake Brew Crew

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    Oh he's got those, no age restrictions either.

    [​IMG]
     
  10. unit1069

    unit1069

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    Save as much money as you can and forget about splurging on things that aren't necessary. Learn as much as you can about various investments so when you graduate you'll be able to enjoy your life.
     
  11. RWBlue

    RWBlue Mr. CISSP, CISA CLM

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    Two questions:
    1. If SHTF for you, do you have people you could barrow money from? If you do then savings isn't really a problem. Just make sure checks don't bounce.

    2. What is the biggest expense that you could get hit with (personal SHTF)? My guess is this is probably next quarters tuition and/or transportation and/or rent.
     
  12. paintballwannab

    paintballwannab

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    3-6 months of living expenses.
     
  13. jrpro130

    jrpro130

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    I think I may be the only one that will say this, but keep your expenses low and you won't NEED a savings. Just live your life and enjoy it, don't ever be late on bills and keep some extra cash around in a safe place, or a grand in a savings account.

    My theory is you don't need a lot because your expenses aren't a lot. You have the rest of your life to worry about money, investments, 401k/retirement, etc. Just enjoy college and have fun. Work for your enjoyment.

    My other theory is also this, say you make 1000 a month (for easy math) for the 4 years you are in college. If you save 20% a month that is $200. Over a year that's 2400x 4 years that is $9600.

    Now lets say you get out of college, now you make $4000 a month, you save 20% (or more, because like I said, keep your expenses low), now you are saving 800 a month, thats 9600 a year!!!!!!

    That was how I did it, and it worked great for me. Right now I'm 24 and good for about 60k a year (I'm a firefighter/paramedic), I save roughly 50% of my income (for a downpayment on a house) because I'm so used to living off of 20k. I don't live out of my means and I just do stuff to make me happy. I'm not cheap by any means, just set myself up, I don't have credit card debt, just a truck and atv payment, insurrance, phone, and expenses. I still live with family while saving for a house. So I really still don't have an "emergency" fund. I have a rather large "house" fund. But I just keep 2 paychecks worth of money in a savings account.

    My thing is my job is relatively reliable so I don't feel I need it. Just letting thousands of dollars sit around isn't my thing. I already contribute 10.63 percent of my gross to our pension plan, 10% to a seperate retirement (457 deffered), and insurrance, life insurrance, supplimental, dental, etc. So all my stuff is taken care of. If I get injured my short term kicks in...so I'm not too worried about the 6 months savings thing.

    Edit: I guess i didn't really answer your question. But I would say I feel like 3k is a good number if you just have some basic bills. Depends on your job/how much rent is.
     
    Last edited: Aug 18, 2012
  14. concretefuzzynuts

    concretefuzzynuts Brew Crew

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    No bills either.

    Moms basement = rent paid.
    Utilities = mom pays them.
    Imaginary jet ski = free.
    Women = porn is free from moms internet access.

    Advice from the internet = priceless.
     
  15. Eurodriver

    Eurodriver

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    Thats alot to reply to - but I did read it all.

    I don't want to post actual dollar signs, but right now my rent is about 25% of my total income, and the rest of my bills (see below) are about 40%. But in December my pay is going to decrease by 33% and that is the steady pay. I have two sources of income right now, one being the GI bill that only pays me while I'm in school and the other being a part time job with a family member. When the part time job ends, I will be getting paid only the full months I am in school (F, M, A, M, June, July, Sept, Oct, Nov) the rest are prorated. I don't want to be caught with my pants around my ankles and I don't feel safe with only 3k.


     
  16. RWBlue

    RWBlue Mr. CISSP, CISA CLM

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    So your biggest expenses are rent and food.

    What do you do for a living? OR to put it a different way. If I lost my job it would take a while to find another one. My guess is you have a job that if you lost you could find another one within a month?

    So I think you need 1 months worth of expenses. To be extra safe, keep 2 months worth of expenses. But as you grow up and get more real expenses, you need to work toward 3-6 months of expenses.



    Never, Never buy anything on credit card that you can not pay off at the end of the month. It was/is a problem with my generation. It is much more an issue with every generation after mine.

    I will also tell you, don't buy stuff, just because you can afford it. Buy stuff you REALLY REALLY WANT/NEED.
     
  17. jrpro130

    jrpro130

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    Based off what you said I would say to set a goal to save as much as you possibly can. Set aside "play money" but save save save


    Should be wrenching instead of using TapaTalk
     
  18. Huaco Kid

    Huaco Kid

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    I put myself through school. (Bike was paid for in cash before I got there.)

    Enough cash for mac & cheese and laundry was about normal.
     
  19. MasterShake

    MasterShake Brew Crew

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    :rofl::rofl::rofl::rofl:
     
  20. DaneA

    DaneA

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    ^This is your answer^^

    /thread