Whats the right balance of spending/saving?

Google / Eng
Zantor

Google Eng

BIO
New grad MTV Noogler
Zantormore
Dec 4, 2019 23 Comments

I’m 24, spending ~5k/mo, investing ~4k/mo. I’m living a good life but still feel myself holding back on certain things I want and could easily afford (e.g. upgrading my phone).

Edit: Since people are asking, I make about 9k/mo after tax and 5k includes all my monthly expenses for me and my girlfriend which includes rent (2k/mo)

Am I being too conservative with my spending or will I need these savings in the future?

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TOP 23 Comments
  • Salesforce horsepla
    I’d put you at the conservative spending end of the spectrum.

    Ask yourself what things make you tingle? Don’t deprive yourself for the empty goal of frugality. Being cheap isn’t a goal. It’s a means.

    Ask yourself what are you saving for? This will tell your if you should save more or less.

    And dude go and upgrade your damn phone, you use it every day. Worth it.
    Dec 4, 2019 3
    • Salesforce horsepla
      Why should frugality be a principle overall? It’s like premature optimization. Don’t save a dollar here or there, analyze your overall cash flow and hit the spots which drain your money hard. Basically home, transport, food. Then think less about small expenses.
      Dec 4, 2019
    • Microsoft / Eng
      MgIr74

      Microsoft Eng

      PRE
      Amazon
      MgIr74more
      Well as long as you are hitting your savings goals, it doesn’t really matter where the money goes. I definitely agree on focusing on the big ticket expenses. I don’t ever bother optimizing the smaller stuff.
      Dec 4, 2019
  • Facebook Vain22
    More info required. What is your monthly take home after tax? What is your greatest expense? What are you investing in?
    Is investing your only form of saving?
    Dec 4, 2019 4
    • Google / Eng
      Zantor

      Google Eng

      BIO
      New grad MTV Noogler
      Zantormore
      OP
      For what reason? Shouldn’t I enjoy life while in young instead of wasting my youth being frugal?
      Dec 4, 2019
    • Microsoft / Eng dUKM75
      I make 3x more than you, I am around your age, I save all but 4k of my monthly income and live a great life with no debt. I will be able to retire in my 30s, 40s at worst, and live a FANTASTIC life. I still take great vacations and have no budget for food/drinking. Materialism is boring and horrible. Experiences don't always cost a lot. You can enjoy a nice upper middle class life with about 2k + bills being paid.
      Dec 4, 2019
  • Microsoft / Eng
    MgIr74

    Microsoft Eng

    PRE
    Amazon
    MgIr74more
    I save slightly over half my after-tax income
    Dec 4, 2019 0
  • LinkedIn fizzwater
    What are your expenses after rent? 3k a month is pretty high for one person. Maybe cook more or eat dinner at work?
    Dec 4, 2019 0
  • Google AC/TC
    Personally, I think you could decrease your spending without significantly decreasing quality of life. This would greatly improve your financial situation in the future at the expense of spending today.

    However, your personal situation may be different than I'm assuming they are, so its up to you to decide how much savings you can target.
    Dec 4, 2019 0
  • E*Trade / Finance cbEV72
    You’re spending too much
    Dec 4, 2019 0
  • Airbnb kYFK02
    You have to set a goal then work backwards. Basically calculate how much yearly after tax income you want in retirement. Calculate when you want to retire. Calculate how much you need to have saved to support your retirement spend. Save/invest at the rate that will build that nest egg. It takes doing the math — maybe a weekend to pull together a good ball park but clearly it’s worth it.

    I’d make a monthly cash flow projection for the next few years and a yearly projection until retirement
    Dec 4, 2019 3
    • Airbnb kYFK02
      Pick the you fest age where you won’t feel annoyed by scrimping
      Dec 4, 2019
    • Airbnb kYFK02
      Youngest
      Dec 4, 2019
  • Kohl’s ex-Kohl’s
    do you have family ? How are you spending 3k/mo apart from rent ? It seems a lot.
    Dec 4, 2019 1
    • Google / Eng
      Zantor

      Google Eng

      BIO
      New grad MTV Noogler
      Zantormore
      OP
      I pay for most stuff for me and my girlfriend. We tend to eat out and travel a decent amount. Trying to enjoy life while we’re young :)
      Dec 4, 2019
  • Wayfair Nfck20
    Get a roommate or 3. Being paid 2k a month to live with someone is a pretty slick deal over living alone
    Dec 4, 2019 0
  • Amazon typicalSde
    What are you spending on? What location?
    Dec 4, 2019 1
    • Google / Eng
      Zantor

      Google Eng

      BIO
      New grad MTV Noogler
      Zantormore
      OP
      Nothing crazy, mostly living expenses which are high since I live in the Bay Area
      Dec 4, 2019

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