Your thoughts on this article: "If You Have Savings In Your 20s, You're Doing Something Wrong"

[Praying Colonel]

From the article:

I don’t have any savings, but I also don’t have any wants.

I don’t know about you, but I like to enjoy my life. I like to go out to eat, buy clothes I don’t “need” and spend money with friends on memorable nights out.

This goes back to a piece of advice a very successful friend gave me: “Don’t save money. Make more money,” he nonchalantly stated, pushing me into a taxi.

Unlike most things people tell me, this advice did not go in one ear and out the other; it stayed with me and changed the way I look at everything from my career to my savings.

Continues

 

[threeboysmom]

Sounds like someone is trying to justify being irresponsible, lol.

 

[DisneyMandC]

Yeaaaaah... I'm in my 20s and that's definitely not my frame of mind lol. Particularly this statement- "People who are saving in their 20s are people who don’t set their sights high. They’ve already dropped out of the game and settled for the minor leagues." Actually, my sights just include purchasing a home, being able to take nice vacations, and being able to afford to continue to ride and show horses (my life outside of Disney!). It's true that my idea of a good time isn't going to a club, but I think we can all agree that everyone likes to take a nice vacation at least once a year. There's a difference between saving every dime you have and being miserable every day, and budgeting so that you're putting money in savings from each paycheck and setting some aside to go out to eat, or whatever you'd like to do with it.

 

[TheDisneyDoll]

I understand what the person is saying to a point, but my situation is unlike the average person. I have a terminal disease and was recently told i had two years left to live. I am in a weird position to want to save for my future, but also live to the fullest.
I am unable to work a lot so the money I get is very important and i've learned that saving is good, but it's also important to live at the same time.
I have learned that in my position having money in the bank and not experiencing the things life has to offer is silly, but i'm not experiencing life in the sense of shopping or things that aren't important to me. I am trying to have as much fun as I can while I can. I will be in the position of being on a lung transplant list someday and there is no guarantee i'I ll make it to transplant day, or that the surgery will leave me better off.
On the other hand I could live 20 more years!
I have chosen to live like I am on a clock, some people will see that as irresponsible but it's just a decision i've had to make and it's a decision every person does make whether they realize it or not.

 

[tvguy]

Sounds like someone is trying to justify being irresponsible, lol.

Exactly. Worked for a company that gave a weeks pay as a Christmas bonus for 8 of my years in my 20's. I invested it since I didn't need it. That money 30 years later is almost enough for me to live on for a year in retirement.

 

[unrequited23]

And here I thought the article was going to say don't have savings (as in the traditional savings account) in your 20's, have INVESTMENTS.

 

[verleniahall]

wow - that is all that I can say - wow -

I agree with a PP who said that it sounds like justification for their spending habbits!

 

[Marionnette]

I think it was written solely for the purpose of drawing attention and driving traffic to the website. Mission accomplished.

 

[FairestOfThemAll37]

I actually agree with this article. I don't think it's saying to bury yourself into debt in your 20s, but that it's the time in one's life to live and explore.

College is usually the first foray into the adult world, but it's really a straddle step. I don't think people should jump right into their 20s fully looking ahead to their future. Most people really establish their adult self in their late 20s, I think the time after college is the time to be a little irresponsible. You're not going to do it when you have a family or are firmly planted in your career.

Maybe this article resonates with me because my 20s were defined by wanderlust and moving across the world. Every dime I had went to me:travel, dining out, bars and clubs with friends;saving for the future was not even on my radar. I didn't go back to school until my late 20s and didn't actually start my career until I was rounding 30.

 

[eliza61]

I can see the intent of the article though. I totally admit to being dismayed at the growing trend I see here in this country of " work yourself to death" for some magical day 50 years in advanced. For me the goal is balance.
Would I encourage my son to go to Europe instead of working a minimum wage job? Absolutely. Do I strongly suggest they save 10% of their salary? Yes again.
Am I impressed by a 20 some thing who's got 100000k in the bank but has never been to a ball game or a live concert? No I am not

 

[eliza61]

The article does ask a great question? Why do 20 year olds now have to plan ahead like they are 40?

 

[Marionnette]

The article does ask a great question? Why do 20 year olds now have to plan ahead like they are 40?

Two words: Compound interest

 

[eliza61]

Two words: Compound interest

Another two words

Dead early.

Two words: Compound interest

No life is another two words. Once again compound interest is great. Doesn't help if you die at 55. Or more common your health fails. I could skip investing if I had 10 bucks for every person I know who now is experiencing health issues preventing a lot of things.

My knees are going, bucket full of money definitly isn't
Curing arthritis, so I am glad I did Paris while I could climb Notre Dame
Lol, like I said Id rather my kids have a balance. Yeah, go see NYC

Guess Im weird, I don't want them waking up at 40 questioning where there life went. I read an article saying this generation of 20 somethings are more stressed and are more diagnosed for anxiety than any other. That's sad imo

I remember seeing Suzy Orman one night she was going at an 8 year old because she wanted to buy an American doll. Those expensive dolls with a story, forgot their name. Kid had saved up for it and Ms O was going on. About how irresponsible the kid was for wanting to blow it on a doll. I remember thinking Damn, has it gotten to the point where 8 year olds have to start retirement accounts?

 

[wenrob]

I don't think it has to be all or nothing. When I was a kid we didn't have the expectation of travel or experiences. You got a job, you paid your bills and if there was any left over that was good too. Anything I had, car, tv, that coveted VCR was hard earned and paid for by me. I didn't have to "bet on myself in the future" because I bet on myself in the present. I still took vacations, partied with my friends while eventually paying for my own wedding and having a down payment for my first house by the time I was twenty four. There was no one who was going to come and bail me out if I screwed it up and they certainly wouldn't have if the mess was because I squandered what I had hoping it would all just work itself out. I have never regretted working hard and saving in my twenties. Not once.

I have a 19 year old and have raised her the same way. She does have someone who can bail her out if needed but it wouldn't happen if she thought she was entitled to travel/party everything away. She works hard, has an impressive savings account funded solely by her AND manages to do things with friends, travel to see shows etc. I'm pretty sure she wouldn't have it any other way.

 

[barkley]

me thinks they DO have a safety net-it's mommy and daddy.

I get what the writer is saying but I think it's horribly short sighted and based on what I suspect is an entitled attitude as to what financial help they will or perceive they will get down the line from their parents.

unlike the parents they talk of in the article I wasn't married at 20 nor was I planning to be or planning to have kids. I was enjoying myself but I was also saving. so when I DID get married at just shy of 30 i was able to pay for my own wedding and not have to ask for parental help, and within 8 months of marriage dh and i were able to pay less each month for a mortgage than the going rate on rent with our savings (couldn't fathom having to ask for a loan or gift from parents for a down payment). when we decided to start having kids 3 years later we had enough saved so i could stay home full time for 2 months followed by dh full time for a month-and then i could return to work part time. it was only by virtue of having saved as a tween and teenager that i was able to go to college on my own dime without any loans, and because i started those saving habits early in life-when i was just shy of 40 and had 2 strokes totally precluding me from working again, our household wasn't thrown into total financial ruin.

the author talks about considering mortality in the equation-the author needs to consider what can happen in their life between now and that point in time because it can be horrific and only remotely survivable w/some savings in place. maybe she should talk to those who were self sufficient and often supporting children adults during the last recession (oh wait-that would be her parents whose advise she thinks lacks insight).

 

[Disneefun]

Glad I did it wrong, then. In my 20's I saved like mad and said no to a lot of "fun" but you know what? By the time I was 33 I had enough saved to essentially retire and do whatever I wanted for the rest of my life. Which is exactly what I've proceeded to do. I've had nearly 14 years now of all the "fun" I want without being tied to a corporate job. Had I blown it all in my 20's, I'd be working now and probably for at least another ten years. So thank heavens I did a lot of something wrong!

 

[DisneyMandC]

The article does ask a great question? Why do 20 year olds now have to plan ahead like they are 40?

Another two words: student loans. AKA my second mortgage. And yes, I know I brought that completely on myself. But still.

 

[Marionnette]

Another two words

Dead early.


No life is another two words. Once again compound interest is great. Doesn't help if you die at 55. Or more common your health fails. I could skip investing if I had 10 bucks for every person I know who now is experiencing health issues.

Lol, like I said Id rather my kids have a balance. Yeah, go see NYC

I understand that having a balance is key. But spending it all, as the author of the article seems to embrace, is irresponsible. How many people with poor health would be happier if they didn't have to evaluate whether they can pay the mortgage or get that expensive diagnostic test because their deductible and copay are so ridiculous?

I'm fortunate to still have my husband with me. It could have been a different story if we didn't have access to excellent health care and the ability to pay when he needed open-heart surgery last Christmas. So, while I understand your point (we traveled a lot before his diagnosis but not much during his recovery), I have a different perspective. Being "savers" from the time we were in our 20's has made it easier to absorb the financial hits that life has thrown at us. We are able to pay those deductibles without a worry. And who needs to add a financial worry on top of the stress that debilitating health concerns can bring?

 

[Gumbo4x4]

Clueless. Paraphrasing "When you're in your 40's, you won't look back on your twenties and be grateful for that few thousand you saved. You'll be full of regret".

B
U
L
L

Now in my 40's, the only regret I have from my 20's is not saving MORE! And if you're delaying marriage & kids until later in life and also not saving, good luck retiring - EVER.



As for the make more money point & the $60,000 raise you're going to get from "networking all night", yeah I'm not going to bet my future on that. This is a twisted way of trying to piggyback off the entrepreneurs' theory of not having a "plan B". Those guys don't need a plan B because they're 100% dedicated to plan A, NOT because they're out partying & "living life".


Now, I get the notion that you have to strike a balance because tomorrow is never guaranteed. But the problem with this article is she's suggesting tomorrow IS guaranteed & you can always be responsible later.


Let me give an example of one way I found a balance in my 20's. I used to go out with friends and/or coworkers 4-5 nights a week & typically down 2-3 cocktails a night. I was spending $50-75 a week on alcohol, and not getting even the slightest buzz on any of those nights. So, I started drinking water instead. Still went out, had just as much fun, banked the cash & used it for other fun stuff. You don't always have to spend money to "live life to the fullest". And sometimes the money we spend today doesn't hurt savings later so much as it blows our chances to spend it "later today" on something better.

 

[alievans719]

I get the concept that you should be living life, I agree, but I don't think I shouldn't have savings. I have a little bit of money, not a lot. But I don't have a great job, but I also don't work my butt off. I have a lot of debt from school that I'd love to be gone.

I think it has to be a balance. I love saving money, but for things I really love. So that money does get spent, eventually, but it's for something that I really want, deserve, and feel like I earned. I saw a bunch of cute stuff last night online. They were expensive. Sure, I had the money to buy it. But then I thought, you know what, I have a vacation coming soon, and another after that(I know, such a sad state of affairs) and I thought, I'd rather the money I spent on those things to go towards something that is once in a lifetime, and that I can enjoy with other people.

I agree that you should enjoy life, but I also think that shouldn't ever end. It's just a balance, and being responsible. I can do all the things I love, but I also work for it, and make those things truly worth it.