Comments on: Open Thread: Let’s Talk Saving

By: Catherine

Catherine — Fri, 26 Nov 2010 17:22:25 +0000

One incredibly important saving strategy that wasn’t mentioned here is participating in any kind of 401(k) plan that your employer offers. At a minimum there will be a tax benefit, and if you’re really lucky an employer will “match” your contributions at a certain percentage or up to a certain amount. In fact, if you have the option of participating in an employer matched plan, and you don’t, you’re potentially throwing away tens of thousands of dollars that would accumulate on your employer’s “match” between now and your retirement. This is a great way to both build up a retirement plan, and/or save for a downpayment on a house- you can withdraw up to a certain maximum to use towards the purchase of real estate (check with the company administrating the plan for maximum amounts that can be withdrawn- usually 10,000$, and any restrictions on how soon it can be withdrawn, etc.)

By: ellie

ellie — Wed, 18 Nov 2009 03:57:27 +0000

When I started my firm job, I put away 8-10% in the 401 K. Every year, when we got a cost of living adjustment or raise, I increased the percentatge a point or two. Hardly noticed it, and after five years was maxing out my 401 k. Thank goodness, cause that is about all I have in savings now.
This year, with husband not working we are hurting. Now trying to find $$ anywhere I can, I have cut back to 2% to the 401K, and deferred my school loan payments for a year. Between the mortgage and daycare, the coffee I get once or twice a week is nothing. If only we could sell our house and downsize…

By: ellie

ellie — Wed, 18 Nov 2009 03:47:45 +0000

haha! I know, I dont post much, but chose Ellie early on when I noticed there were so many of us….

By: AN

AN — Tue, 17 Nov 2009 09:41:25 +0000

I disagree with posters who say separate accounts are a recipe for future divorce. My husband and I (married for 10 years now) have separate accounts – he makes twice what I do, though when we started out, I made more than he did – and have joint accounts for all investments. But we never keep track of who pays for what as we think it truly doesn’t matter. We just couldn’t be bothered with a joint a/c and the tracking that goes with it. Many times, we will transfer money to each other’s checking accounts if running low on funds – we never give it a thought or as I’ve seen couples do, demand ‘payback’.

It’s strange but in Singapore where I live the creed is “what’s yours is ours, what’s mine stays mine” (female thinking). I know couples who even split the grocery bills! Sounds awful but true. And still “married”.

By: RKS

RKS — Mon, 16 Nov 2009 23:29:02 +0000

Has he explained *why* he doesn’t want to leave a credit union that sounds impractical and expensive (no local ATMs, I assume)? Sounds like there needs to be a big-picture financial discussion where you lay out your approaches and figure out how to work with them. If he refuses to discuss money after a few attempts, it may be time to bring in a third party. Marriage counselor? Financial advisor? Money is one of those big-ticket things couples fight about, so this has to be nipped in the bud, soon. It won’t get better over the years.

My husband was (is) oblivious about all things financial. When we got married, he had no clue about how much was in his checking account and even though he was carrying significant post-grad school credit card debt, had NO idea how much it was. Once I expressed my concerns, we agreed that I would handle day-to-day finances and he would deal with long-term stuff that doesn’t require regular attention. This plays on both of our strengths and avoids his weakness.

I respectfully disagree with Anon who suggested that he should pay all of the bills. That is a recipe for disaster if he is not willing to step up and face daily financial decisions.

By: divaliscious11

divaliscious11 — Mon, 16 Nov 2009 19:15:14 +0000

TERM is definitely the way to go for that.

By: Z

Mon, 16 Nov 2009 02:43:04 +0000

What a great post and thoughtful advice as well! And I love the opportunity to syareI have to admit I get a stomach-ache just thinking of retirement savings, because, well, we basically have none. When we lived in the States DH was putting money into a 401k from his salary, but since we have moved abroad nothing has gone into long-term savings; DHs goal was to get as much of my (private) law school loans paid off as possible – he is European and has no debt.

But now we are facing the trifecta of money worries – I am pregnant, my job will be ending in April, his will end in October, when we will move back to his home country (potentially with both of us without jobs).

We are currently saving all of his salary and living off of mine, but still will barely have enough to cover 3-6 months of potential unemployment plus moving costs when April rolls around (and we have to survive on just his salary in one of the most expensive cities in the world).

By: lawyer&orthodontist'swife

lawyer&orthodontist'swife — Mon, 16 Nov 2009 00:17:03 +0000

I agree with DH. Why buy homeowner’s insurance, car insurance, or any other type of insurance if you “know”/plan on never using it? Pre-nups are like insurance–you buy it and hope to never use it, but it’s there if you need it.

By: Saver

Saver — Sat, 14 Nov 2009 05:22:29 +0000

I do this and keep it in an Excel spreadsheet. I also have categories for whether the item was for work, fun (casual) or essentials/accessories. It is quite fun to review the list at the end of the year and see what my good and bad purchases were, note what had lasting value, and commit to making less foolish/regretful purchases the next year. :)

This year, about 50% of my purchases were for work clothing, 20% essentials/accessories, and 15% each for shoes and casual clothing.

By: Erin

Erin — Sat, 14 Nov 2009 02:00:51 +0000

Too many Erins! I will henceforth be Erin M.