I am very paranoid about money and I save a lot. Is 9k good for a 20 year old to have saved up?

Answer 1

It does not matter HOW MUCH you save - what's important is HOW MUCH OF YOUR INCOME you save.

The way to deal with paranoia in finance is to start small: assume you've only saved 8K, do your homework, and invest 1K in stocks for the long haul. Your paranoia will moderate or reverse after you start showing a profit (unless, of course, you develop a new paranoia of losing the gain :) )

Answer 2

I would assume that you are doing a great job but it depends on your expenses. Experts say that you should have enough to cover 3 - 6 months of your expenses.
Do not keep all of your money in a savings account. Since inflation is averaging 2% a year plus taxes on your interest would mean that you should get a minimum of 4% interest so that the value of your money does not decrease.
Keep 1 - 2 months worth of expenses in a local savings account since it will be quick to access the money in case of emergency. Then put the rest into other investment vehicles such as a CD. Also, start investing some of the money in stocks. You are young enough that you can make a killing over the long term.
Just remember to NEVER INVEST IN SOMETHING THAT YOU DO NOT UNDERSTAND AND FEEL COMFORTABLE IN.

Answer 3

Thats really good man and the way you would know is by looking around you, I bet you other 20 year olds arent doing that good. I speak from experience because when I was 20 I had 11k, but I was in the Marines so I had very little expenses.

A little advice,(if you dont already know) think about educating yourself on ways to invest that money i.e. real estate,stocks..., because it is nearly impossible to get rich just through savings.

Answer 4

That's excellent for someone your age. Keep saving. But don't be afraid to spend your savings on education. Education, especially getting a college degree, is one of the best things you can do for yourself at your age. Getting a college degree is especially important because most people who get one have careers where their earning power keeps up with inflation. Most people without a college degree struggle to avoid falling behind.

Answer 5

That is EXCELLENT for a 20 year old to have saved up. Please be aware, however, that as you enter adult life where you have to pay your own rent or house payments, utility bills, insurance premiums, food bills, gas bills, etc., etc., etc., that that money will literally DISAPPEAR in front of your very eyes. My 23 year old son returned from his second tour of duty in Iraq with about 15K saved up, and within one year it was all gone. We warned him about that, but, he felt "rich" or confident financially, and he wanted to have some "good times" after having been in the war for a bit over two years. He had been paid extra for having been overseas in combat, and felt good about the money he had, and didn't seem to understand or appreciate the "dim" or "bad" news we had to tell him about how fast his money would disappear in front of his very eyes if he wasn't cautious about spending and tried to maintain some adequate savings plan. Now, he's back to month by month living with under 1K in his bank account. He needed money from me, and I made him BORROW it so he could learn just how difficult things could be. I made very generous monthly installment payments he could pay me back with over the next 18 months, with no interest, and hopefully he'll make it through. But all this is to say that, as good as you've done, and you truly have done good, please hear me tell you, just as I did my son, that that money will absolutely DISAPPEAR from before your very eyes if you don't develop a good savings plan, and be smart about your spending. I do wish you the very best, and God Bless you.

Answer 6

Very good. I think when I was 20, I was about $3k in debt and had no savings.

Answer 7

Heck yes, that's terrific!

Answer 8

YES..good job!

Answer 9

No.