My neighbor told me saving 1% of my paycheck was pointless and honestly he had a point

I was talking to my neighbor Dave last week while we were both out watering our lawns. He asked about my budgeting and I said I was proud to finally save 1% of each check. He just laughed and said that's like trying to fill a pool with a teaspoon, you need at least 10% to actually see progress. I was kinda annoyed at first but then I did the math and yeah, at 1% it would take me like 80 years to have a real emergency fund. Has anyone else had a simple comment from someone that made you rethink your whole approach to saving?

3 comments

3 Comments

bethj447d ago

Eighty years? You're not planning on retiring that soon anyway, right?

umac717d ago

@michaeljones has a point, bumping it up to 5% even if it stings makes more sense. But let me ask you something - what's your biggest monthly expense that you know you could cut back on? Because a lot of people I know who tried jumping from 1% to 10% just gave up after a month or two. Finding that one drop in spending first might make the jump feel less like a punch in the gut and more like a slow shift.

michaeljones7d ago

Honestly, 80 years isn't a retirement plan it's a hope and a prayer. @bethj44 might be joking but that speed won't get you anywhere when a tree falls on your roof next week. I'd say bump it to 5% even if it hurts, then work up to 10% once you get used to it.