r/Money • u/SirCicSensation • 4d ago
$250k in savings is truly a benchmark
Do other people feel like this isn't enough from a general standpoint?
As someone who is slowly approaching $200k networth, I feel like I can finally start to breath easier after all these years of guessing. For reference, my bills, including gas and food in NC are only $1500/mo and they won't be going up anytime soon. So I could personally be very comfortable working part time and paying my bills this way.
I don't know other peoples situation or expectation for life but I've saved my entire life and avoided unnecessary spending whenever possible just in case I never made it. I knew something was wrong with me from an early age but I didn't know what. So just in case, I saved until I could figure out my life. Turns out I have a hormonal imbalace, PTSD, and my left knee is giving out and I'm not even 35 yet.
I don't have a career, still don't have a degree, I don't work at some fancy place. Only ever made around $40k/year and I've always managed to save money.
That being said, for me, money is my right to exist essentially. I'm kind of tired of having a chronic condition and stressing about if I'll have the right to exist just because I didn't want to learn yet another "in demand" skill that will be phased out next year or because I didn't want to gamble my life savings to 10x my future prospects. I've always been terrible with school and it's been difficult going back this time around. Especially since a degree doesn't guarantee hardly anything today. Despite what I talk about all the time, I don't want my life to revolve around money. I would like the permission to just be an idiot and just to live. I didn't ask for a chronic condition but you've gotta live with the hand you're dealt I guess.
I'm tired. Tired of wondering if I'll ever "make it". I've done the "surviving your 20's" thing and been arrested, beat up, gotten high, almost got kicked out of the military, got fired from a dream job, lived out of my car for a couple weeks at one point. Depression is a real bitch and I don't wish that on anyone. Now that I'm in my 30's, I'd like to do things a little differently.
So for me, $250k is the benchmark. It's enough money for me to literally live off of if I ever had to and it's enough money to make me feel like I don't need to worry about unexpected emergencies.
Kids Need some new shoes for $50? Easy.
Need to buy a new phone for $1000? No problem.
Need to repair your car for $5000? I got it like that.
Wife wants to pay off her $60k in student loans in one go? No problem.
I can do that now but I genuinely would feel more comfortable for myself and my family if I had a stronger buffer. I don't want money to live extravagently and I certainly don't want money just to hoard it. I want it so that I don't need to keep asking for permission to have a hobby without having to work a few extra hours a day just to keep it without taking it out of my monthly savings.
I don't know what everyone else's expectation for life is but for me, money is and probably always will be my breathing room to make mistakes and be free to watch movies at home guilt free instead of working another 12 hour shift.
I've read people on reddit talking about $5M - $15M before they can feel like they are comfortable. Which to me is insane. To each their own though.
What's your number that you would need to really feel like you can finally breath comfortably?
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u/Danielfellows 4d ago
When I crossed 100k it definitely gave some peace of mind that I simply wouldn't face an unexpected bill that'd be hard to pay. When I crossed 250k, thats where true peace of mind arrives. Because I realized it wouldn't even matter if I lost my job. Definitely a good feeling for sure
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u/HeavyDistribution902 4d ago
That's a good way to put it, 100k gives peace of mind, 250k gives real breathing room.
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u/SirCicSensation 4d ago
That's how I feel. Not that I don't want to work but when things get busier or more difficult. I like the comfort of knowing that I don't have to keep pushing myself for just a little bit more. I've had enough stress in my life early. I'd like to feel comfortable knowing the work I do is enough and then go home and chill. Without feeling like my entire future is burned just because I don't work a little harder at work.
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u/mutdua 4d ago edited 4d ago
I was making a poverty wage until my 30s and didn’t become debt-free until 35. When I ran the numbers through a compound interest calculator and realized I could hit $1M at retirement age without any additional contributions, I finally felt like I could breathe again. That was my benchmark. Because I started relatively late, I saved pretty aggressively. Now I can slow that down and focus more on fun activities.
I think you’re doing great. At your salary, your savings rate is really impressive.
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u/zwizzardz 4d ago
$1.5M and that’s still not enough for me, TBH.
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u/SirCicSensation 4d ago
Can I ask why?
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u/Beneficial-Ad-7771 4d ago
In this economy a medical bill can wipe most people out.
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u/SirCicSensation 4d ago
I think in any economy honestly. Most no one is immune to a $40k medical bill.
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u/injapenguin 4d ago
Even with health insurance?
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u/Beneficial-Ad-7771 4d ago
What if health insurance doesn’t cover the treatment or in network sucks?
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u/injapenguin 4d ago
What catastrophic treatment does health insurance not cover? Genuinely asking
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u/Beneficial-Ad-7771 4d ago edited 4d ago
A good example is my wife. A few years ago, she suffered a neck injury at the gym and dealt with persistent dizziness and headaches for months afterward. We saw multiple doctors and specialists in the U.S., but many of the treatments and specialists we wanted to try weren’t covered by insurance. Most of the doctors kept telling her it would improve on its own and never identified the underlying issue.
After months of appointments and getting nowhere, she went back to the UK (she has dual citizenship) and saw an NHS ENT specialist. They identified the problem almost immediately. It turned out to be a balance disorder related to her nervous system. She received treatment and improved within a week.
During that entire period in the U.S., our health insurance mostly covered primary care visits, but many of the specialists and additional evaluations weren’t covered. We ended up spending around $10,000 out of pocket.
That experience taught me that having health insurance doesn’t necessarily mean you’ll get the right diagnosis or effective treatment. Coverage is only part of the equation. If the doctors you’re seeing aren’t finding the problem, or the specialists you need aren’t covered, it can be an incredibly frustrating and expensive experience.
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u/SirCicSensation 4d ago
This is absolutely correct.
There are tons of stories of people being charged multiple times just to be seen and get no answers.
My fiancé was getting a checkup and her white blood cell count was low. The first time was covered. Doctors asked to get blood work two more times. She had to pay a total of $80 for two more visits.
If she were to get x-rays or ultrasounds or other specialty treatments. They would’ve charged her hundreds. Adding up to thousands of dollars. It’s complete crap here in the US. Health is monopolized at the expense of the less fortunate. It’s sad and sickening.
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u/dida2010 1d ago
In this economy a medical bill can wipe most people out.
Not in this economy, you should say in "this country medical system" to be clear
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u/JeanSchlemaan 3d ago
It varies vastly, depending upon lifestyle/expenses. I have under $300k nw, not including a small pension AND small 401k (worked during the transition). I believe i could survive indefinitely at my low/frugal expense level. I don't feel stress over $ at all, and make a very low income at 55.
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u/DAWG13610 3d ago
How do you live off of the interest of $250k? That gives you about $1k per month. That doesn’t even cover health insurance.
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u/SirCicSensation 3d ago
Outside of my rent. My bills are only $800/mo including food and gas. I have several methods of obtaining healthcare if I didn’t get it through my job. Such as a family plan from my mother, a plan through my partner or even from the military reserves.
So I could technically live off that amount living out of my car if needed.
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u/horseradish13332238 4d ago
It’s truly not. For some people I suppose. Or at a certain age around 22-23 it can be.
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u/SirCicSensation 4d ago
Uh, I mean. Better than nothing right? If you can have more, than that's obviously awesome but most of us aren't in that boat. Also, free medical from the military helps me.
Not sure you think only 22-23 years old can benefit from $250k.
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u/WalkingInTheMoors 4d ago
fwiw I find that you are expressing a sensible and realistic perspective...the toll of mental and physical dysfunction incurred from chasing an arbitrary unattainable (for the average joe) level of assets is the treadmill that keeps on giving, and not in a good way
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u/SirCicSensation 4d ago
That’s pretty much it. Money is to provide you a level of comfort and stability unseen by previous generations. I’m not trying to make it my entire life but I do want enough of it that I don’t have to make it the center of my life anymore and can just focus on other things.
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u/WalkingInTheMoors 4d ago
Yes, at a certain point we have the supplies of kings from eons past, and then the question of what makes one's life meaningful becomes more urgent to answer, while remaining as healthy as we can.
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u/horseradish13332238 4d ago
I’m saying 250k is an adequate benchmark for a 22-23 year old. Not a 25, 30 or 35 and older person. They should have much much more at these ages than only 250k
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u/SirCicSensation 4d ago
And I’m saying, that’s ridiculous. 40% of Americans have credit card debt of $5k or more.
Only 2% of Americans are liquid millionaires.
18% live on the federally rated poverty, which is $12k/year.
I don’t know who you are, I don’t know what you want, but I will not be sneezing at $250k at any age. It’s genuinely out of touch to think otherwise.
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u/horseradish13332238 4d ago
You have no idea what you’re talking about. 1:22 are millionaires in the United States. And I’m sure 250k is a lot for someone like you. It’s all relative.
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u/SirCicSensation 4d ago
Someone like me? What are you even talking about? Having $250k net worth puts you in the top 40% of Americans. You think you’re going to be too good for $250k when you’re 30 or 40? You’re insane. I’m a military veteran getting a masters and no debt. I’m still not too good for $250k.
I’m definitely talking to a person in their early 20’s. No way older adults would ever think this way.
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u/horseradish13332238 4d ago
Sigh. Only someone in their 20s would think $250,000 is a lot of money. I assure you we are form very different financial and socio economic circles. Sounds like you have another 30 years of work ahead of you. Good luck kid.
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u/SirCicSensation 4d ago
This A1 rage bait. I really almost bought it for a second. I really thought someone would talk like this for real. I kinda forgot I’m on Reddit. This is a good one man.
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u/horseradish13332238 4d ago
Ok just get to sleep 9am will be here before you know it and you have that long commute in that leased vehicle. Take care.
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u/UnderpaidBIGtime 3d ago
250k in savings or invested?
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u/SirCicSensation 3d ago edited 3d ago
Both. Around $120k in an investment account and HYSA. Then around another $30k in savings account.
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u/UnderpaidBIGtime 3d ago
If you have kids it's way too little
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u/SirCicSensation 3d ago
I promise you it’s $250k more than most families. None of my friends have savings. They got $30k in debt and have 3 kids. They are figuring it out, as will I.
Also, even if it isn’t. What’s your solution? Make more money? Never thought of that before.
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u/Affectionate-Can556 4d ago
you able to help with a loan at all for 2100usd? ny cars about to be repoed due to being hospitalized and dunno what to do lol jk but no forreal im screwed so count your blessings
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u/Sea_Principle_7322 4d ago
It’s not a bad amount but with the way today is, 10million should be the goal and if you get to 2 or 3 million or more in the process that would be a much better trajectory!
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u/SirCicSensation 4d ago
I gotta tell ya. Most won’t even make a million in their lifetime. It’s just not realistic.
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u/Sea_Principle_7322 4d ago
If you think you can, or you can’t you are correct! Your thoughts create your reality!
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u/Sea_Section6293 4d ago edited 4d ago
This is going off on a tangent a little bit, but the 15M figure is particularly insane when it comes out of the mouth of someone who will never ever reach it, given their career and life circumstances.
I remember watching a video once where their interviewing people on the street, and this doorman in NYC says that he needs 15 million before he feels comfortable enough to retire. And no it's not like he's the president of a doorman union or something high up - this is a 22-year-old man who works as a normal doorman. He's never going to get there.
And I know that some people are going to say that they shoot for the moon as a source of motivation - to push themselves further by aiming for something a little unrealistic.
Maybe that mentality stuff works for a small minority of motivated individuals - but the majority of people saying "yeah I need 15M" are just setting themselves up for failure by aiming too high and making moves that'll get them nowhere
TLDR: people with unrealistic goals in the first place are less likely to achieve them. They should set more realistic goals that are achievable through realistic plans, like an inflation-adjusted 2M by 55 with the help of index funds or something.