Im 1/2 of a young (25) engaged couple a few years in the work force. I now make enough to get by- but not enough to put money away in savings ( i am putting money away in a 401k though for retirement)
I dont make a super low salary- but its still low enough and I have enough debt (mostly good- student loans etc) where once the bills are paid I have enough for the necessities.
I do have one credit card that I do NOT use anymore- but i am paying it off monthly and in case of a true emergency (as bad as it is) i could put something on there.
I feel really good about no longer creating debt and working on paying it off- next year my car payment will be done and that will be a HUGE relief and savings will be alot easier.
Point of the story though- I feel like such a loser at 25 to be living paycheck to paycheck. Im honestly pretty proud of myself that I have never paid a bill late in my life and I know there are alot of people who cannot even afford their rent each month. Times are rough- my fiances who work got a 20% pay cut and its not like we are living the high life.
Were you ever in this situation? I feel like im alone in the world of people with nest eggs and im just happy to be staying afloat!
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Tue, Feb 2, 2010
February 2nd, 2010 at 1:16 pm
I think it’s great that you are realizing the importance
of savings at 25 instead of 40/45 like lots of Americans.
In this perilous economy you must be cognizant of
the possibility of being w/o employment.That’s a start.
***Now put away what you can even if it’s just $2/$3
until you put away $100. then start a savings account.
Do not touch your savings—you want to accrue at least
six months of savings protection for blind-sided expenses.
DO NOT think of your car loan as ‘free money’ once it’s
paid off—-think of it as an expense to you for your future!
Good Luck
February 2nd, 2010 at 1:16 pm
It’s good that you are putting money into a 401(k) but it is vital that you establish an "emergency fund" equal to six months’ living expenses, even if you have to temporarily throttle back on 401(k) contributions. Everyone needs a cash safety net in case of job loss, illness or injury.
February 2nd, 2010 at 1:16 pm
You are certainly not alone. Start by paying yourself first. Don;t put it off another day. Open a savings account and have a portion of your pay direct deposited into it – even if it is $25 per pay period. It doesn’t seem like much, but it will grow.
You said you are engaged – so you might as well start saving for that now. Hopefully, you are not thinking of financing your wedding.