TIL my parents' advice about saving 10% was actually smart after I ran the numbers on a compound interest calculator last night

I crunched the numbers with my actual salary from the last 3 years and realized I'd have an extra $4,200 right now if I'd just put that 10% in a basic savings account instead of blowing it on takeout and new phone cases - has anyone else had a wake-up call about a simple money habit they ignored for way too long?

3 comments

3 Comments

nina_johnson861mo ago

Oh man, that's a tough one to swallow but I've been there. I set up a separate high-yield savings account and did an auto transfer of 10% right on payday so I literally never see that money hit my checking account. It stung at first but after 8 months I had a solid emergency fund saved up without even thinking about it. Sometimes you gotta make saving invisible to yourself so you don't have to rely on willpower every single time.

black.joel1mo ago

That 8-month emergency fund you mentioned would probably be what I spent on DoorDash in a single year. I finally ran the numbers and realized my "treat yourself" mindset was just me treating DoorDash's shareholders instead. Guess I'll find out if ramen noodles still taste the same at 30 as they did at 19.

oliver_wilson491d ago

And here I was thinking my parents were just trying to ruin my fun with boring math problems. @black.joel you're basically describing my entire 20s summed up in one post, except I was treating the local pizza place like a charity I believed in. At least the ramen will remind you of the good old days when rent was cheap and hope was free, right? I swear the second I started hiding money from myself with auto-transfers it was like tricking my brain into being an actual adult without the emotional drama.