The average American has less than $1000 in their savings account --- 62%. Is this the epitome of living on the edge?

2016-08-31T05:34:27-04:00

Lots of cash going into our service member and veteran accounts today. Is this the day that you start saving? As you can see above you are not behind. Today is just as good of a day to start than any!!

http://www.marketwatch.com/story/most-americans-have-less-than-1000-in-savings-2015-10-06

Most Americans have less than $1,000 in savings

Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account.

Response by TSgt Joe C. made Aug 31 at 2016 6:15 AM

2016-08-31T06:15:26-04:00

Today is a good day to start! I'm saving little by little COL Lee Flemming

Response by SFC(P) Private RallyPoint Member made Aug 31 at 2016 7:09 AM

2016-08-31T07:09:59-04:00

You're right Sir not enough young Soldiers saving for their retirement! I put $500 per check away and haven't touched it in 10 years! Also, soon they will have no choice but to save with the traditional retirement going away and swapping to a blended 401k system!

Response by Maj Marty Hogan made Aug 31 at 2016 7:10 AM

2016-08-31T07:10:49-04:00

http://www.daveramsey.com/blog/three-steps-to-wealth-building-for-young-adults/

Wish I would have started sooner

Three Steps to Wealth Building for Young Adults

As a 20-something, learn how to set yourself up to build wealth by becoming and staying debt-free with Dave's three beginning steps.

Response by MSG Wade Huffman made Aug 31 at 2016 8:02 AM

2016-08-31T08:02:49-04:00

While these statistics are staggering, I'm not surprised. Most (and I'll include myself here) understand the importance of starting early, but when young, you believe there will always be more time. The power of compound interest over time can not be underestimated!

Response by Col Joseph Lenertz made Aug 31 at 2016 8:22 AM

2016-08-31T08:22:32-04:00

COL Lee Flemming Great point! Living with less is something we can learn from those 80+ year olds who can remember the Great Depression. If you can control costs, debt goes away and saving becomes easy. No one needs an I-phone 7 or a Ferrari. I have a flip phone and a Ford.

Response by SPC Erich Guenther made Aug 31 at 2016 8:38 AM

2016-08-31T08:38:01-04:00

Well to be honest, it's good your encouraging this. Sad to say that I never saved a penny towards retirement until I was 37-38 but because I have a well paying and in demand civilian job I am doing great with retirement savings and should be able to retire at a normal age (so in some cases it is not completely hopeless if you start at a later age). I learned most of my investing managing my Mothers portfolio after my Father died. Luckily she had a significant financial cushion so the damage done via learning was repairable. Have not read David Ramsey's stuff but I know that he has good intent. I wish I could teach a course or type out more that I have learned but I think the Moderators here will cut me off as most websites do not like discussions on investing that get too deep or technical.

Response by MSgt Private RallyPoint Member made Aug 31 at 2016 8:49 AM

2016-08-31T08:49:25-04:00

I don't have a savings account but I have a 401k from my civilian employer that I have been contributing to for 15 years. I also have a defined benefit pension plan with that employer and should be getting my 20 from the reserves in a few years. With all those things and my husband's 401k and his reserve retirement, we should be ok in our later years. I also try and keep a few months worth of expenses split in cash in a safe and also in my checking account. Some times I have more than others but it is a good rule of thumb. (Learned that from watching Suze Orman). Sometimes we do buy stupid stuff. I think everyone gets into that occasionally but we try and be reasonable and not buy too much stupid stuff at a time. When paying off debt I like to start with the smallest and work up to the largest. This is because that way you see definite progress as things get paid off and can increase your payments to larger debts as you pay smaller ones off. I agree many people often live pay check to pay check. I recommend hiding or putting the c redit card somewhere hard to get to. (Used to freeze one in ice but not sure if that wpuld ruin the new chip cards) it is still there if you need it for an emergency BUT not easily accesible for buying stupid stuff.

Response by Maj Private RallyPoint Member made Aug 31 at 2016 12:06 PM

2016-08-31T12:06:33-04:00

Some servicemembers are "lucky" that someone introduced them to some of these concepts earlier in life. It has been my experience that many of our young enlisted don't know about compound interest. As more senior leaders, we should teach them.....yes, I'm sure I read about that somewhere. The "Rule of 72" 72/return on investment= Number of years until fund doubles in size. 72/"8%"= 9 years.
A few weeks after I give my class to the E-2 through E-5s, I have them pull up their service account (MarineOnLine) and show me their contribution to the TSP on a Friday afternoon. If it says 5% or they say they invest somewhere else, I tell them to enjoy their weekend. If it says 0%, I have some more work that needs to be done.

Response by PV2 Glen Lewis made Aug 31 at 2016 12:16 PM

2016-08-31T12:16:27-04:00

I've just done away with everything but food, clothing and shelter; the basic needs. I have a few wants like the very basic TV and Internet. At the insistence of my family I do have a cell phone but it is on one of my sisters family plans. I am not a big fan of them as I find many people who have them don't answer them even though they may have them within arms reach. My expenses total less than $1000 dollars a month and I've found I can live securely on that. I save about $40 a month religiously and so far that has handled any emergencies I've run into over the last 20+ years.

Response by ENS Private RallyPoint Member made Aug 31 at 2016 1:06 PM

2016-08-31T13:06:25-04:00

I'm "technically" a millennial, enough though it's odd to say that for anyone born between 1982 and today.. Bit I digress. I started saving when I was 21 (when I joined the Navy). Today, at 24 years old, I have more than $20,000 in Roth TSP. 45% of my base pay goes directly into TSP - which just about maxes my contribution amount out. At the moment, I only put $100 a month into savings, because I am working my way out of stupid debt. Once I am above water, a lot more will go into Savings. I use an American Express Card for just about everything (card card - not credit, so I have to be responsible). The rewards I reap from this card alone allows me to travel home every year for pennies. I'm flying my wife and myself from Honolulu to NY for $200 (after points were applied). According to the TSP calculator, I will have anywhere from $3M - $18M in my account by the time I withdraw depending on several factors of course. Hopefully, we are allowed to contribute more, because though that kind of money goes pretty far today, there's no telling what that will be 50 years from now. $3M might be the average income for the middle class. *shrugs* Bottom line, don't vote for Hillary. ;)

Response by MSgt John McGowan made May 23 at 2017 10:20 PM

2017-05-23T22:20:05-04:00

PO1 George. Man I do hope you are wrong. My nest egg is good now but I m getting little long in the tooth. I just look at my Grandchildren and wonder what they will face.