Is it difficult to save money when you're married?

Question

I just feel like I need to have a lot of money saved up(AT LEAST $50,000) when I hit 25 years old.. so that, I'll be able to provided for my future family. By the way.. I plan on getting married this year, so there will obviously be bills to pay and with my job as a RN, I don't know if I'll be left with a lot of money at the end of each paycheck to be able to save alot for the year. Lets just say that I have $50,000 when I get married at age 25.. and I put aside $5,000 a year for savings.. that means that means that when I hit the following ages, I will ages the following amount saved up:

25- $50,000
26- $55,000
27- $60,000
28- $65,000
29- $70,000
30- $75,000
31- $80,000
32- $85,000
33- $90,000
34- $100,000
35- $105,000
36- $110,000
37- $115,000
38- $120,000
39- $125,000
40- $130,000
41- $135,000
42- $140,000
43- $145,000
44- $150,000
45- $155,000
46- $160,000
47- $165,000
48- $170,000
49- $175,000
50- $180,000

If I were to continure at this rate.. that means that by the time I hit 60 years old.. I will have $230,000 saved up. That just seem like much. Is there anything that I can do differently to be able to save up more money because thinking about this is stressing me out to the max. Thanks. Any advice or whatever would be greatly appreciated.

exactly.. I could get hit by a car tomorrow, that's why I want to be able to save as much as I can NOW so that I'll be able to leave my family with something instead of bills and a mortgage.

Answer 1

You are glossing over several realities.
1. At some point, it is likely you will be making more money per year than you are now. (Financial plus.)
2. There may be children in your future for whom you will need to provide. (Financial minus.)
3. You haven't mentioned the joys of compounded interest. (Financial multiplier.)
Take a few hundred dollars from your nest egg and invest it with a FEE ONLY financial planner. (Some financial planners work on commission for financial instruments they are trying to sell. You want an independent one.)
Chances are he or she will suggest some life insurance to benefit your family in the event of your early death, plus some disability insurance in the event you become temporarily incapcitated and cannot work. (Right now, your biggest asset is your earning power. And the insurance amounts can be increased as your family size and obligations increase.)
Your advisor may suggest you keep 3-6 months earnings in some sort of cash or money market account that pays more than your neighborhood bank savings account. (This will be for short term emergencies or to cover expenses in the event of a disaster, think the fires in California, or a job loss.)
Your advisor will suggest investments for savings you will need to access before retirement, such as the down payment for a house or college later on. Again the goal is to do a little every month so that it is painless.
The chunk of your savings you want to commit to retirement can go into a Roth IRA. This is after tax money that grows tax free until retirement. The money you earn is re-invested tax free. (Your advisor can give you all the rules.) At your age, with average returns, $10,000 invested could be worth $1,000,000 at retirement. That's the good news. The bad news is that in 40 years, $1,000,000 won't be enough to support you and your wife in the 30 years you are likely to spend retired. However, if you committ to an annual investment toward retirement you will take advantage of fluctuations in the stock market.
Ask your HR department at work, they may have some sort of matching program for retirement savings--that's free money to you.
If you remain committed to saving 10% of your annual income for big purchases--a home, kids' college, and retirement, you should be fine.

Answer 2

Good luck with your goals.

Personally, I think its much more difficult to save money when you are married. Too many other uncontrollable variables like divorce and children to affect the outcome of your goals.

Unless you end up as a dual income -no kids family with similar incomes and theories in saving money with your spouse will the finances have a good chance of working out the way you want them to.

Another consideration savers must make now that has not been taken very seriously in the past is the likelihood of a persistent weak dollar in the future given the lack of an accountability peg in the M3 money supply, large accelerating trade deficits due to the lack of domestic production of goods and energy and the continued expansion of the national and personal debts.

It might be a wise move to hold a much larger percentage in tangible things than bank accounts.

Answer 3

You might want to check into mutual funds to get much better returns. And maxing a 401K plan if your employer offers one or at least maxing an IRA for retirement is a good idea.

Saving is good but you need to make sure your future spouse is on the same page. You will encounter more expenses as you set up housekeeping, buy a house, and have kids -- saving money if you have kids is really hard.

Answer 4

look man, you could be run over by a car tomorrow. All this planning is a bit much dont you think? Try to live day to day. Who knows what the future holds.

Answer 5

yes if your partner spends it. no if your partner saves it. live off 1 income & save the other. you want to lower your taxable income--invest in your 403B, 401K (spouse), mutual funds, open ira, buy a house, buy another property & rent it off, start a small business (consulting, service, etc). also review your 403B, 401K, mutual fund investments at least 4x per year & make changes accordingly. good luck.

Answer 6

it is easy to save at any time in life just have it auto deducted and put into your savings...ING accounts are great because they offer higher interest and are out of site out of mind but you can get to the money if you really need to...keep saving.

Answer 7

No. (If your husand/wife makes more money than you)