simser
Familiar Member
Joined: Jan 29, 2011 15:54:04 GMT -5
Posts: 798
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Post by simser on Jul 1, 2012 19:59:52 GMT -5
I just revamped my direct deposit for my paycheck. My paycheck looks something like this: $3900 Gross Pay $750 401k $950 taxes $100 Health Care, FSA, Prepaid Legal, rounding errors $500 Direct Deposited EF (very very tiny EF after grad school) $250 Vacation savings so my Argentina vacation is paid for. $210 IRA savings
Everything else- what I get to live on. It comes to ~1190 2x a month.
Please remind me that a) savings is good, b) I don't need more money than that and c) that I don't have to have everything this instant. It's freaking me out a bit. My 401k balance is just 5k, I'm just restarting my IRA this month, I have only 1k in an EF. But I was a grad student until December, unemployed until March, and have no debt. I just need some reassurance that I'm doing ok.
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Waffle
Senior Member
Joined: Jan 12, 2011 11:31:54 GMT -5
Posts: 4,391
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Post by Waffle on Jul 1, 2012 20:33:35 GMT -5
OK - I can be a cheerleader. a) Savings is better than good - the more you save - the more options you will have in life, savings will make parts of your life less stressful. You're doing great with saving! b)Of course you don't need more money than that - you might want more, but you don't need more c)The ability to delay gratification is a sign of maturity. Furthermore, many times people find if they delay buying something they come to realize they really didn't want it after all. Or if it is something they really want, they can delay it until such time as they can get a better deal on it. You're doing fine (but you knew that already, didn't you? )
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Deleted
Joined: Apr 17, 2024 18:40:48 GMT -5
Posts: 0
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Post by Deleted on Jul 1, 2012 20:54:43 GMT -5
You are saving slightly over 43% of your pretax income. Nothing to apologize for there. It is actually impressive although it is easier if you don't "grow" into your income but rather start saving the extra from Day One.
Congratulations.
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susanb
Well-Known Member
Joined: Jun 21, 2012 14:16:56 GMT -5
Posts: 1,430
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Post by susanb on Jul 1, 2012 20:58:27 GMT -5
You are going great. If I can put on my amature psychologist cap for a moment....
You just finished grad school and a job transition. While in grad school/unemployed, you probably spent a fair bit of time telling yourself NO. You told yourself that things would wait until you had a good paying job to do things, even fairly cheap things, like buy a new pair of jeans. All of this created a lot of practical and emotional pent up demand. You probably actually need a lot of things that you didn't spend money on for the last while. Also, you probably want to buy stuff and let yourself indulge a little.
Here is the thing, you can actually have your cake and eat it to. Keep your budget. It is a good budget. It allows you to save for your future in the form of the IRA, EF and 401k while also allowing you to enjoy the fruits of your labor by saving for your trip. Once you have saved enough money for your trip, keep that $250 per paycheck set aside for other things you want - jeans, a new couch, speakers, money towards a new car, spa day, whatever it is.
Finally, what I have found is that the more assets I have the less likely I am to buy the things I used to think I wanted. During college, I drove around in my Honda thinking about the shopping sprees I would have once I made x amount of money per month. I thought about the fancy car I would drive. This weekend, like most weekends, the only shopping I did was at the grocery store. While I drove around (still in a Honda), I thought about how I am going to invest the $ I thought I would be spending on a luxury car.
Everything you want is coming to you and it will be all the more satisfying because you are taking the time to obtain and savor it like an adult who can control her appetite instead of binging on ice cream and candy like a kid let loose with her birthday money in a candy store.
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simser
Familiar Member
Joined: Jan 29, 2011 15:54:04 GMT -5
Posts: 798
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Post by simser on Jul 1, 2012 21:58:32 GMT -5
You are going great. If I can put on my amature psychologist cap for a moment.... You just finished grad school and a job transition. While in grad school/unemployed, you probably spent a fair bit of time telling yourself NO. You told yourself that things would wait until you had a good paying job to do things, even fairly cheap things, like buy a new pair of jeans. All of this created a lot of practical and emotional pent up demand. You probably actually need a lot of things that you didn't spend money on for the last while. Also, you probably want to buy stuff and let yourself indulge a little. Here is the thing, you can actually have your cake and eat it to. Keep your budget. It is a good budget. It allows you to save for your future in the form of the IRA, EF and 401k while also allowing you to enjoy the fruits of your labor by saving for your trip. Once you have saved enough money for your trip, keep that $250 per paycheck set aside for other things you want - jeans, a new couch, speakers, money towards a new car, spa day, whatever it is. Finally, what I have found is that the more assets I have the less likely I am to buy the things I used to think I wanted. During college, I drove around in my Honda thinking about the shopping sprees I would have once I made x amount of money per month. I thought about the fancy car I would drive. This weekend, like most weekends, the only shopping I did was at the grocery store. While I drove around (still in a Honda), I thought about how I am going to invest the $ I thought I would be spending on a luxury car. Everything you want is coming to you and it will be all the more satisfying because you are taking the time to obtain and savor it like an adult who can control her appetite instead of binging on ice cream and candy like a kid let loose with her birthday money in a candy store. There's just so much that I want. It doesn't help that I went through a divorce and basically got the crap stuff. But I lived without a dresser for 3 years- what's another year, right? I know intellectually that I'm making choices, and if it's really bad that I can change those choices. It's just hard!!!
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resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
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Post by resolution on Jul 2, 2012 4:09:32 GMT -5
Congratulations on finishing school and on your new job. You are doing great! With that savings rate you are saving more than many families with multiple incomes and are going to be seeing large gains very quickly.
How much are you allowing yourself in the budget to buy the things that you want? Maybe it would be easier if you had a line item in the budget for purchases like the dresser so you feel like you are making a little progress toward the purchase every month.
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zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
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Post by zibazinski on Jul 2, 2012 7:11:37 GMT -5
Goodwill andSalvation Army are your friends. You can get a dresser there, we just did for DD, for 20 bucks and it's a nice one. People just give this stuff away. Go to a resale clothing store like Junior Leagues Scot Shop. Gorgeous clothes, barely worn, for cheap! I got the best fitting pair of jeans there for 2 bucks. Indulge your want for things and even nice things, on the cheap, without busting any budget.
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