I am saving too much money?
I'm 25, male, previously working as an engineer and I have always been an extreme saver (I have a hard time spending money on a lot of things). I was recently laid off and unemployment is paying me more then I was making (which is quite ironic). I have $25,000 in my savings account. I will probably have over 30,000 before I'm 26. I also have 14,000 in student loans that I'm waiting until I'm reemployed again to pay off. Am I going overboard with saving money?
- K S LallLv 71 month ago
How much is your mortgage?
- curtisports2Lv 71 month ago
You haven't supplied the right information. What percentage of your annual income are you saving? What is the interest rate on the student loans? What is the rate of return you are getting on the money you have invested?
I do not believe you can ever save too much. However, without more info, I can't tell if you are saving too little. I do NOT consider the emergency fund that everyone should have to be 'savings'. How much do you need to cover a MINIMUM of six months of living expenses (a year is better) if you had absolutely NO income at all? If you need $3,000 a month to pay all of your living expenses, that is $18k - $36k, and you subtract those numbers from $25k to see what you REALLY have in savings. I would say that if you do not have an emergency fund, that now you do - but you have little to nothing in savings. You are definitely not going overboard, but you are in danger of going under.
- 1 month ago
no way! i want my future husband to be like this. youre a total catch
- 1 month ago
I wish I did what you had - you never know what life will throw at you - when I was 24 I was diagnosed with a debilitating illness, now I am 40 I just have more health problems, and more debt.
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- 1 month ago
Umm, I think that you're a bit foolish to think that 9000 dollars is a lot of money...
It really isn't
- STEVEN FLv 71 month ago
There is no such thing as saving too much.
If I were in your place, the student loan would be paid of LAST YEAR.
Update: If you are taking in more on unemployment than you were as a engineer, you are a LOUSY engineer. You should have STARTED at more than you would take in collecting unemployment, even with the extra $600/wk
- 1 month ago
Listen Jeff, let me shock you: Saving money is a good thing, but leaving the money untouched is a DUMB THING. Cash lying around is a dangerous thing and it doesn't matter what anyone says. Stocks are good but super risky. Buy yourself a property and I don't care what type.
Depending on where you live, that money, or part of it could help you drop an advance on a property. You could let it and the tenant/s pay all the mortgage; or you could let part of it and live in the other part, or you could even live in it alone if you so wish. Bottom line, your money will be working for you instead of working for the bank.
This is from experience Jeff and I didn't even have a dime. I borrowed the advance, bought a property, let it for 2 years, sold it and cleaned out a nice £30k. And like I said, I did not invest a dime of my money - heck, I didn't even have one! So think Jeff. Don't sit on all that money. You will only be making your bank rich. Do your research on this - you might just learn much more. Cheers
- Christin KLv 71 month ago
Why would you think that having a lot in savings is 'going overboard?' It's secure and sensible. And you'll be glad you did it. I know people who would give their right arm to be in your position. However, there is MORE you could be doing with that money. You could put it instead into a higher yield certificate of deposit. Not only would you have the money you saved, you'd have more of it when it matures.
- Anonymous1 month ago
Nope. It's a good idea to save, but asking the same damn questions over again makes you look like a dick.
- David B.Lv 71 month ago
No, but if you aren't getting at least the same percentage interest on your savings as you are paying on your student loan you don't know how to make sound financial decisions.