Do you have a "comfortable" size savings account?

[eliza61]

lol,
Yesnoyesnoyesno.

So my answer changes almost hourly!! My problem right now is learning to be content with what I have and having confidence htat I've made good decisions.

For some weird reason I'm coming off of what I called "disaster mode". I keep thinking...

what if I get sick in my old age
What if social security goes under
what if pension goes under
what if____fill in the blank.

I'm another person who has absolutely sworn off of the "experts", these last few months of research trying to get ready for retirement as definitely convinced me that fear and uncertainty is big business.

So I'm trying to lean back and reassure myself that I've prepared as best as I could.

I have enough money in my investments to pay off my house if an emergency comes up.
Right now my money is making money which is what leads to real wealth.
the boys college tuition is there so they won't graduate with any debt
I have health insurance.

I do have to get back into savings though. I just purchased a new house and wooza have been spending like a drunken sailor. Just brought hunter douglass Roman shades and an area rug for the living room that cost more than a trip to Disney.

I'm never moving again in life, lol

 

[xlxo]

Those who have tapped into savings due to job loss or similar - how do u get through that on a daily basis without being terrified. We might have to start dipping into our savings and I am terrified of doing so.

the question is what consists of your "savings".

• certainly what's in the bank.
• what about illiquid stuff like stocks and mutual funds. Are these an option?
• some of us have retirement funds that some may not count as savings but are an option. In some countries, these funds are tax sheltered during years of good income, but are an option to tap into during temporary periods of job loss or low income.

Then there is the question of how long should savings last when in retirement? Should it be for 10 years? Many are now living past 100... is your savings strong enough for that? Could your house as part of your savings strategy?

Perhaps one of the biggest questions for some is giving up the car... especially with multi-vehicle households where public transit is an option. Depending on where you live... insurance is not cheap, especially when you are not driving that vehicle. Then again, for some a car means an extra hour or two a day with family as you are not waiting for that bus.

 

[North of Mouse]

Yes, we are retired (I was always a SAHM), are empty nesters, and totally content. We have always been $$ conscious, our home and cars are paid off, and a 10 yr. guaranteed annuity will begin next month.

My dh worked for a good company (with retirement), but never made over 5 figure income, but I've always been a number's cruncher by nature and we have done well as we are both good managers. Always take vacations, but never (since home and cars paid) go into debt for 'anything'. Thankfully, have never had any emergencies (that weren't covered) that we haven't been able to handle.

Both are 'very' happy in this stage of life - don't take lavish trips abroad (not the 'cup of tea' for either of us). Dh had enough of that, traveling to other countries with the co. We do love traveling in the states though - and of course seeing the Mouse!

 

[kuhltiffany]

I seem to have a different perspective than most, and our financial advisor agrees with me, thank goodness!

Money sitting in an account doing nothing? No way! Here's why:

All debts paid except a very low-interest mortgage.
Money in education savings for the kids (still looking to top this up)
Good amount in RRSP (401K in the US).
Other investments as well.
(Enough assets to cover the mortgage if we really needed it to)
I'm a SAHM with the ability (Master's degree) to bring in income if needed (we've done this in the past with DH work changes, combined with unemployment we can cover expenses)
We're in Canada so have health coverage
Good Disability/Life Insurance policies in case

 

[scottmel]

Interesting question...I am 45...SAHM, we own our home and all cars and have no debt. We have however put away A LOT for retirement as in DH could retire in the next few years if he wanted but he wont', loves work! But my liquid assets I have always just kept putting into retirement....I use to always try to have 10k savings but honestly it doesn't seem to be there anymore. Private highschool is a killer and so are taxes! But honestly if I don't see it, I can't spend it so I tend to pile it into retirement! But I really should work towards that 10k emergency fund again...was half way there until property taxes were due! UGH!

 

[ellochka]

I would consider all taxable assets except for the regular checking account to be "savings". We have vacation savings, medical/repair savings, tax savings, regular savings, and brokerage (some liquid money in it, too).

Our lives are also complicated - a second baby on the way, an almost sure layoff next year (company merger), possible relocation, currently a bad school district, etc. So, we have to have very substantial savings.

 

[leebee]

We're in a lull right now. I like to keep the savings over $10K, never below $5K. In May, DH was set with his full time job as well as the offer of an adjunct position for the fall (which would also have a partial tuition waiver in addition to salary, which usually went directly to savings). Knowing he was 'set' for fall (HAHAHA!), we applied and were approved for a HELOC as "back up," so I dipped into the savings and had some house repairs done (some new windows, painting, soffit/fascia redone on the roof). Then fate happened; DH's old car died, his part-time fall teaching position fell through, etc. We leased a vehicle (I'd do it again, but smarter next time…lesson learned) and have managed to pay for everything else without touching the HELOC, but this is the month to pay off the contractor for the windows so we'll have to tap into the HELOC. It'll be OK in the long run: Teaching contract for spring semester is already signed, so the tuition waiver and automatic savings deposit will start in January, and DH has grant money for salary next summer, so we'll be fine. Just taking a little time right now. It took me awhile to learn to sleep at night again, after dropping the savings into the $3K range, but we'll be OK. Fortunately, all things Disney (see my ticker) are paid for except food, and I have about $800 in Disney VISA reward points to pay for that, so even vacation shouldn't hit us too hard!

 

[CalDisneyMomof2]

I'm definitely not comfortable with what we have in savings but I've learned to not stress about it so much. In fact, our savings is well below what is considered to be necessary. But, our jobs are very secure (knock on wood) so I'm not concerned. Actually, my company was just bought out but I still have my job. My line of work can be done with or without someone to work for (I'm a massage therapist) and I don't worry about finding work. My only fear is when my body will give up. I don't anticipate any time soon but I have so much experience that a management position in my industry is something I'd qualify for. My husband's work will always be there. He works for a VERY profitable MLB team that isn't going anywhere.

Our retirement savings is fairly healthy and we could always take from that if necessary. (Done it and would do it again. We were in desperate need of a new car and took money from it to put as a down. It's now paid off.) DH also has a pension.

We bought a house almost two years ago and that nearly wiped out our savings. Since then we've been trying to build it back up. It's a bit difficult with how my husband is paid as it is inconsistent so we we have what's called our "dry months". We have to save, save, save September, October and November (the months he makes the most) for January, February and March (the months he makes the least). It's just the way it is. As the years go by we're getting better at it.

I think next year will be the first year in a long time that we will have what is considered an "acceptable" savings. He's taxed so high (commission) that we'll be getting a large refund next year (also from our interest on our house, taxes, etc.). But until then, I'm not going to worry like I usually do and we will STILL be taking a vacation before then without going into any more debt.

 

[Viva Las Disney]

if I don't see it, I can't spend it so I tend to pile it into retirement! But I really should work towards that 10k emergency fund again...

I fall into this category also, I should probably have more liquid assets in the bank but I've found if I have a large balance I tend to spend more. I have a couple months in an emergency account but nearly all of my saving goes into my 401k so I don't see it, I'm also trying to pay off my mortgage in 15 years by having principal only payments taken automatically with my mortgage every month, I know if I had to send a check every month I'd find something else to spend the money on but by taking it out of my hands I force myself to be responsible.

 

[MillauFr]

I don't know if I have "enough" but I refuse to be suckered into listening to the financial planners (aka fear mongers) that pray on people's insecurities. Many of these people are leaches.

 

[crisi]

Objectively - there is about three years worth of spending in the bank.

Subjectively - My husband and I are starting a business. We are just starting to get revenue. We have ten years between now and the time when we can start to access 401ks. If the business is successful - great - if not, three years may go by quickly. Its a consulting business - no inventory or overhead to speak of, so we aren't putting our cash towards the business (except for incorporation fees and some other small things), but it is dependant on us having enough clients to support ourselves. He's got a client, I don't yet - I'm also starting to look for full time work to make him consulting easier - so whichever comes first.

 

[teCh0010]

I keep 3 months expenses completely liquid in a traditional savings account, and I can lay hands on another 9 months within 2 - 4 days. Seems to be a good balance. I direct deposit directly into my savings account.

 

[SirDuff]

I seem to have a different perspective than most, and our financial advisor agrees with me, thank goodness!

Money sitting in an account doing nothing? No way! Here's why:

All debts paid except a very low-interest mortgage.
Money in education savings for the kids (still looking to top this up)
Good amount in RRSP (401K in the US).
Other investments as well.
(Enough assets to cover the mortgage if we really needed it to)
I'm a SAHM with the ability (Master's degree) to bring in income if needed (we've done this in the past with DH work changes, combined with unemployment we can cover expenses)
We're in Canada so have health coverage
Good Disability/Life Insurance policies in case

Mine is similar (I'm also in Canada), but I'm single so a few differences.

Along with my RRSP, I have my TFSA (I have a pension at work, so my RRSP is smaller than normal as I am not allowed to put in the full 18%).

I have life insurance through work (I took the bare minimum - I have no dependents, so no point if having a huge amount) as well as disability (here I paid more for a better version).

I keep a minimum amount in cash, but have some easily liquifyable things in my investment account that I can access pretty quickly. Worst case scenario (I cannot wait a few days), I put things on my credit card for the few days it would take to sell things I need.

 

[ronandannette]

Nope, not right now. DH was under/unemployed for several years after undergoing a catastrophic business failure. We watched the savings/retirement account dwindle steadily during that time and instead of getting ulcers, we were THANKFUL that we had it at our disposal - we would have been quite badly-off without it.

He just began drawing a reasonably-sized regular paycheque again in May and we're confident this position will be stable for a good many years. We immediately took the rest of our savings and used it to purchase and reno the condo we plan to live in until retirement (after having rented for the past 4 years). It played out nicely and we're very satisfied with the investment but it took the entire balance we had left. It's now time to concentrate on fast-tracking the mortgage pay down (DH is 60) and re-build our cash reserve. $5,000 immediately liquid is our basic goal. God is good and we're content and well-cared for. Nobody knows what the future holds but we'd do the same things over if we had to do it again.

 

[tvguy]

Thinking about it, not so sure I am so much concerned with what I have in savings, as opposed to having cut my regular monthly expenses back down to the point that what one of us earns covers all the bills, and what the other earns goes into savings each month. Getting my bills back down to 50% of our monthly take home pay. After 22 years of private school tuition, college tuition, mortgage payments, and car payments, all of those are finally done.
Okay, with 11, 14 and 27 year old cars all with over 100k miles on them, the car payment could make a comeback, but we like not having a payment so much, our next car purchase may be strictly based on what we can afford to pay cash for, not some dream car.

 

[Luvchefmic]

Originally Posted by Luvchefmic View Post
I totally agree with what you are saying. Sometimes " they " say even more than 3 months. There are many so called experts, ones that make a living selling books, programs, etc you know the big names, and self-proclaimed experts that think they have all the answers.

In reality the paycheck to paycheck life is a common life.

Paycheck to paycheck is common, but it is not ideal. Most of us need standards and goals to aim for.

I've had lots of times in my life where paycheck to paycheck was my reality. However, having savings goals has always been helpful to me in terms of keeping my spending within my means and trying to prioritize tucking some away for emergencies.

Without goals it's too easy to throw in the towel and let the debt pile up.

Of course it's not ideal, but it happens to more people ( I include myself and my husband in that ) than many may realize.

You can have all the money you ever think you would need put away for an emergency and it can get sucked right out of your lives over time like a vacuum was attached to all your savings, checkings, stocks, etc until the circumstances change. As long as more debt is not piling up, a roof is over your head, food is in your belly you make it until the next day...then you get up and do it all over again. God IS good and things will turn around.

It has nothing to do with standards, goals, or throwing in a towel.

 

[Luvchefmic]

Those who have tapped into savings due to job loss or similar - how do u get through that on a daily basis without being terrified. We might have to start dipping into our savings and I am terrified of doing so.

I have cried, we have fought, and then I have my faith. That is the ultimate thing that gets me through. You have to find what works for you.

Everyone will give you the standard advice cut everything you can: no meals out, no movies, etc. That's common sense. We didn't live like that anyway. I became an expert at Dollar General, I rediscovered a food delivery service that has been in business since the 1950's that my parents used to use and filled up the freezer. I talked to any creditors I had straight up and worked things out. I only have one cc and a car loan. I paid what I could when I could.

You get your priorities in order you make your monthly house payment rent or mortgage and you don't get behind. You keep your lights on and your water on. You buy food and take care of your pets even they have to eat cheaper sometimes.

You don't panic, you don't blame one another, you don't play the mental game of should have, could have, because it will cause nothing but stress, age you quickly, cause sleepless nights, and make you sick.

You take a proactive stance and you make a plan.

 

[Dawnlight]

No, no yet. We've had a very tough time financially the past 7 years. We bought our first home which required dipping into savings and 401k, then 3 months later husband lost his job. He lost 3 additional jobs over the next 6 years. Needless to say, we weren't able to save, and ended up pretty deep in debt; thankfully, we never missed a mortgage payment despite the hardships. He also was forced to change jobs during this period due to his company being bought out and the new company not offering a family health plan (only per person, and we are a family of 8). It was going to cost about an extra $1000/month for health care that we just could not afford, so he found a new job that had better benefits, but the pay wasn't as great.

We've since managed to pay off all debt and are now very diligently pumping up the savings account. We'll also start working again on boosting contributions to 401k savings once out savings in a little more padded.

I'm thankful to family that was able to help us during this time, too, and are also treating our family to our kids' first Disney trip. We'd never be able to afford it if it weren't for a very special person!

 

[ronandannette]

In reality the paycheck to paycheck life is a common life.

Of course it's not ideal, but it happens to more people ( I include myself and my husband in that ) than many may realize.

You can have all the money you ever think you would need put away for an emergency and it can get sucked right out of your lives over time like a vacuum was attached to all your savings, checkings, stocks, etc until the circumstances change. As long as more debt is not piling up, a roof is over your head, food is in your belly you make it until the next day...then you get up and do it all over again. God IS good and things will turn around.

It has nothing to do with standards, goals, or throwing in a towel.

This is exactly what happened to us - nobody would have ever predicted it and once we recognized the decline for what it was it was too late to do anything but ride it down to the bottom. They were hard, hard times; financially, emotionally and relationally. But "freaking-out" would have changed nothing. We lived adequately, kept the bills paid on time, managed to put DS through private high-school and had a modest vacation or two that we don't apologize for. All of it was paycheque to paycheque and supplemented by our savings. Nobody can make me feel bad about it and not only is it a "common" condition, we were much more fortunate than some.

 

[disykat]

You take a proactive stance and you make a plan.

Exactly. That's what we're talking about. Your posts are totally confusing me. You seem angry that people think saving is important, that somehow we are insulting you and implying you weren't prepared since having savings didn't protect you from trouble, but then you talk about being proactive and having a plan. Even the best laid plans get derailed sometimes. That doesn't make trying to have a plan somehow bad or wrong. No one has said having savings means nothing bad will ever happen. Bad things happen to good people. Feel free to come on and tell me again that saving doesn't work. I'm not sure what good it will do, but if it makes you feel better...