$1,000 Rule of Thumb

Tony Barnes By Tony Barnes, 31st Dec 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/1wi_7q8h/
Posted in Wikinut>Money>Investing

Many people live check to check and have a lot of trouble when an emergency comes up. This rule of thumb is a good barometer to whether you are healthy financially.

Rule of Thumb

In the United States, a person should have a thousand dollars saved or invested for each year they have been out of high school. If you have been out of school five years, you should have $5,000 saved up in some form of investment. If you have been out 20 years, then $20,000. It's a great rule of thumb and very achievable if a person will focus upon it consistently. Certainly, there may be years where that is not possible. But, that means you need to catch up in other years.

Now, I know people will suddenly start screaming that I am out of touch and don't know the struggles of single parents. Granted its not easy. But, ask yourself if you have a cell phone or other electronic gadgets. What kind of car do you drive? How much do you use a credit card and forfeit a lot of money each month to finance charges? How often do you hit Starbucks, tanning booths or have your nails manicured?

I don't offer up this rule of thumb to make anyone feel like a failure. But, I do offer it up as a rule of thumb for people to consider how responsible they have been with their money. Make this your goal. You can either work for your money...or you can get your money to work for you.

Tags

Investment, Nail Mancure, Rule Of Thumb, Starbucks, Tanning Booths

Meet the author

author avatar Tony Barnes
I am a native Texan who spent 3 years in the Marine Corps Reserves and 25 years on active duty in the Air Force. I have been a Christian since 1985 and am an ordained minister. I am conservative politically and love to study history. I publish a mont...(more)

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Comments

author avatar Jerry Walch
31st Dec 2013 (#)

Good rule of thumb, Tony.

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author avatar Mark Gordon Brown
31st Dec 2013 (#)

You mention single parents, well ideally a person would not be a single parent when just out of school and so forth, so they would have saved up this money before hand which would be a buffer if later they did become a single parent. Of course I would say to save up the money, as you say, then buy a house before becoming a parent in the first place.

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author avatar Fern Mc Costigan
1st Jan 2014 (#)

I really enjoyed all of your posts this past 2013 and hope you continue doing it in this 2014, I wish you a Happy and a Prosperous New Year 2014, great job!

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author avatar Tony Barnes
1st Jan 2014 (#)

thanks Fern....I find yours interesting as well.

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