14 votes

What are your long term savings goals? Are you saving towards a purchase of anything in particular?

For me, saving money has been pretty tough but my goal is to maintain a minimum of 4 months pay in the bank in case of hard times. My fiance started her MBA and we have been fortunate that we can pay for it outright instead of adding on top of our loans. In the past year I have gotten a bit into churning and using the rewards to help partially pay for vacations throughout the year which has helped a bunch.

I'm interested to read about any goals we are working towards and also talk about different savings strategies!

4 comments

  1. Gaywallet
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    I've been regularly contributing to a 401 for nearly a decade and I've been maxing it out for a few years now. I was looking at how much was in there and if I continue to work and max it out every...

    I've been regularly contributing to a 401 for nearly a decade and I've been maxing it out for a few years now. I was looking at how much was in there and if I continue to work and max it out every year, what will be there when I'm 65. The number surprised me. I then looked at what I currently own in stocks and funds and used an online calculator to estimate how much would be there when I'm 65 with average returns. That number was very similar.

    So I changed my strategy this last year. While I'm still saving what I can, I need to actually start spending some of my money because when I look back on my life, there's not a lot of big experiences I can point to and say "I really enjoyed my trip to..." or "That time I did...".

    My suggestion to those still trying to save and are relatively young is the following:

    1. Put all your money into an index fund. My recommendation is vanguard total stock index (admiral or regular, depending on what you can afford).

    If you want to diversify, split between index funds. If you're a bit older and want more security (or suspect a need to get out of the market in the next 5-10 years), get some bonds or lower risk investments.

    I say this as someone who used to day trade and who still owns a decent amount of stock (working on selling them off as the timing is right and redistributing to an index fund instead). I say this because the headache you cause yourself trying to beat the market just isn't worth it. You might win some years, but you won't win all years and the reality is that index funds do a better job in the long run than the vast majority of people including people who decide to go into trading as their choice of career.

    5 votes
  2. aphoenix
    (edited )
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    I have several shorter and longer term goals. I'm happy to discuss strategies, but most of the strategies that we have just come down to budgeting; my wife and I make a certain amount of money,...

    I have several shorter and longer term goals. I'm happy to discuss strategies, but most of the strategies that we have just come down to budgeting; my wife and I make a certain amount of money, and every month we automatically put it in different financial streams, with whatever is left over being available for personal use.

    Short Term Requirements

    • 6 months salary (me + wife) in accessible savings
    • home management fund for repairs / maintenance / upgrades
    • yearly vacations

    Medium Term Requirements

    • have sufficient down payment to purchase another home (probably selling the house we have now)
    • upgrade to another car, preferably electric

    Long Term Requirements

    • education fund for all three kids (though we'll likely have tuition covered by virtue of my wife being a professor, there are lots of other costs, and the kids may want to go to a different school than the one my wife is at)
    • retirement fund (in ~15 or 20 years for me, probably longer for my wife) which consists of a modest stock portfolio, RRSPs (like a 401K for Canadians), other investments, which we mostly hire someone to manage.
    4 votes
  3. CALICO
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    Short Term (3–12 months) Become debt free. Build a 6-month buffer. Enough to cover expenses, and social life stuff. Sometimes time between contracts can go on longer than expected, and I really...

    Short Term (3–12 months)

    • Become debt free.
    • Build a 6-month buffer. Enough to cover expenses, and social life stuff. Sometimes time between contracts can go on longer than expected, and I really don't want to go back to eating spaghetti every day for months.
    • Save enough to pay an entire year of rent upfront. My credit score is less than ideal, and I figure this will help avoid any issues when I decide to get another job stateside.
    • Alt: if the economy implodes in the next year, and housing costs plummet, poise myself to have a very reasonable down payment to snatch up a house while prices are low. Again, with a credit score like mine I'd like to have as much as possible upfront to assuage the hesitations of lenders.

    Tall Term (1–5 years)

    • If we weren't in Recession territory before, we are now. Save to secure a house on the cheap. It might be my only chance to become a homeowner in the kind of area I'm likely to find employment in my career-field. I know more than few people 20+ years my senior, still caught in the rent trap.
    • If housing has been secured, save to install upgrades for self-sufficiency: solar, power storage, water, etc. as allowed by local ordinances.
    • Purchase an electric vehicle, ideally in cash. The tech should be much improved, and my plebeian petromobile is a source of personal shame.

    Grande Term (5–15 years)

    • If we haven't had a President who's achieved tuition-free/affordable-tuition by now, save to pay for university. As much as I can upfront so I don't get loan-trapped.
    • Upgrade housing if possible. Either way, save for luxury and homesteading shit such as: giant fuck-off bathtub. Sauna. Isolation tank. Greenhouses (plural). Pigs, ducks, chickens. Land.

    Venti Term (15–80 years)
    Assuming all of the above is secured:

    • Mostly just invest and save for in-case I'm lucky enough to become old.
    • Cool cybernetics I guess. If they become possible.
    • Starline Ticket to Mars or the Moon or some dope-ass space habitat. If this isn't possible in my lifetime I'll be disappointed in you, your family, everyone you know and don't know. If we don't have a sci-fi future then my 8yo inner-self is gonna be mad as all hell.
    • Cryogenics maybe. I'm not convinced on the scientific or philosophical success of it, but fuck it. If it works I get to see what humanity becomes capable of in the future. If it doesn't, I'll be dead and probably won't be capable of being disappointed.

    Trenta Term (80–1,000 years)

    • Our civilization hasn't gone tits-up? Nice. Gotta say, y'all had me worried in the first half of the 21st century.
    • Are we still doing money?
    • How much to turn myself into an immortal spaceship?
    • Jesus Christ what am I still doing around.
    • GeForce RTX 2080 Ti, x2 SLI
    4 votes
  4. gergir
    Link
    There's an inheritance sitting with a kind of notary-lawyer that is being depleted by schoolfees. If enough is left when the will's opened I'll go back to where I was born and buy a small farm;...

    There's an inheritance sitting with a kind of notary-lawyer that is being depleted by schoolfees. If enough is left when the will's opened I'll go back to where I was born and buy a small farm; live autonomously if possible, maybe with friends. In the meantime all my savings go to trainfare and guitarstrings, so in a pinch I can busk at a station - "evening travellers, here's Louie Louie in a samba arrangement..."

    2 votes