At 33 years old how much are you supposed to have in your Savings Account?

[grymoire]

Your post made me realize that its doable. All we need is attitude shift and discipline.

I hope I'm not taking over Gry's thread, but I really would like to seek your advice on - 1) how do you maintain an expensive hobby? I want to learn n go scuba diving but I'm very hesitant to buy a good gear b'coz of cost involved. 2) I really want to travel, you mentioned that you have travelled extensively, can you please share how I can travel inexpensively? I would really appreciate that.

You can PM me too.

Thanx again for a great post, I'm sure lots of ENAers have found it useful.

 

Yes, I am also very interested to travel around in an inexpensive way. Please let me know how.

[yellow_sweater]

YELLOW SWEATER'S TOP 10 TIPS FOR EXPENSIVE HOBBIES

 

I'm going to gear this toward, well, outdoor gear, because that's what I know best, and how I spend a lot of my disposable income. The principles here could be applied to pretty much any hobby, though.

 

1) Try it first. SCUBA sounds cool, but have you ever done it before? If you haven't, how do you know you're going to like it? I know a guy who decided that he wanted to be a snowboarder. He went out, bought the board, bought the boots, bought the snowpants and the lift tickets and the goggles and... guess what? He went snowboarding maybe a half-dozen times. LOL!!

 

2) Limit yourself. You can't collect Ferrari's, be a world traveler, champion skiier, SCUBA aficionado, and wine connoisseur... unless you're Donald Trump, of course. Find one thing you LOVE, and devote yourself to it fully. It's almost like being in a relationship. Until you're ready to commit, don't buy the gear.

 

3) Rent. When you're just getting started out, rent your gear until you're ready to make the commitment.

 

4) Make friends! Ok, I'll let you in on a secret... my insanely expensive hobby is rock climbing. I still do not have a full, traditional rack of protection. Granted, I haven't been climbing THAT long yet. But! I've made friends with all sorts of groovy, inspiring climbers that let me tag along. I get the benefit of watching their technique, inspiring me to work harder, and I also get the benefit of sharing their gear.

 

5) Branch out. Once you completely fall in love with something, consider getting a part time job/ volunteering with an organization, or offering private lessons. I actually teach rock climbing at a local place, and as a result, I can ask to use their gear, if I can't borrow from a friend or otherwise make do.

 

Ok, so you're completely in love and ready to commit. You're ready to start buying your own gear. How to proceed...

 

6) Start small. You don't need to outfit yourself head-to-toe as soon as you decide to commit. Buy one piece of gear that you KNOW would SIGNIFICANTLY improve your experience or your safety. If you're getting into camping, a decent tent is the place to start. Leave the backpack and ultralight stove for later, and just use a duffel bag and buy some charcoal for a BBQ.

 

7) Know what you're buying... and buyer beware. Analogy: you can do a cheap job on the interior of a car, but always spring for the good brakes. They might save your life. Do your research. On the other hand, don't go overboard--as you develop your hobby, you can upgrade in future years. For example, if you're getting into cycling, you don't need a carbon-frame bike yet. Think of marathon trainers in Africa who run 20 miles BAREFOOT. You DON'T need the $200 sneakers, I promise.

 

In some cases, I would recommend buying used gear. Used tents, used backpacks, etc. might make the difference between being slightly less comfortable versus slightly more comfortable: until you're very attuned to the outdoors and being in it, you're not going to notice the difference. Buying used non-safety sensitive gear is generally fine. BE VERY, VERY CAREFUL PURCHASING USED, SAFETY-SENSITIVE GEAR.

 

8 ) Know the deals. If you're into outdoor gear, you must know and live by link removed, link removed, and other online discounters. Never buy anything full price. You're in this for the long haul, right? So you don't need it NOW. You can wait a month until it comes on sale.

 

9) SAVE. This goes without saying, but don't buy on credit. If you're buying on credit, you can't afford it.

 

10) Most importantly: remain true to your passion. Remember that it's not what you're wearing, or where you bought it, or how expensive it was, or how high tech it is. In the end, it's you and what you love. Climbers will climb all over buildings in their sneakers. They'll climb up exposed staircases in their socks. It's all for the love of hanging by your fingers and toes. The rest is just gravy. If you remember WHY you're buying your gear, you're much less likely to get sucked into impulsive, unnecessary, ostentatious purchases.

 

Whew... Ok, I'll do a top 10 for traveling next.

[yellow_sweater]

YELLOW SWEATER'S TOP TEN TIPS FOR TRAVELING ON A SHOESTRING

 

1) Lower your standards. This is probably the second most important point (see the bottom of the list for the most important). You're not going to be staying in four star hotels. In fact, you might not even be staying in a hotel. You might be cold. You might be hot. You might be uncomfortable. You might be on a bus with chickens strapped to the roof and an old drunken Brazilian man farting in the seat next to you. You might find bugs in the shower, the shower might not have hot water, in fact there might not be a shower. You might have to eat food that is slimy, crispy, smelly, or otherwise distasteful (hint: in general, if the locals are eating it, it's edible... few exceptions noted in #10). VERY importantly, learn to "rough it" while you're still at home. I have seen the worst come out of people when they're outside their comfort zone and don't know how to deal. Prepare yourself emotionally, physically, and intellectually BEFORE you leave.

 

2) Be realistic. Some places are CRAZY expensive, including New York City, London, Tokyo, etc. You're not going to Antarctica on $500, unless you get creative (see #6). I remember seeing a post on an online travel forum of someone wanting to do an around-the-world for US$500. You can travel on a shoestring, for sure, just don't make it too short.

 

3) Do your homework. Know enough about your destination that you could be a travel agent. Read all of the guide books, then read link removed and link removed. Come up with an itinerary and attach a cost to each item. Then rip it up and try again, just for the practice. Know when the museums are open ("shoot, the museum is closed today, I have to stay an extra day here so I can get in tomorrow, adding unnecessary cost to my trip as I have to change my bus ticket"). Know on what day the market occurs. Know where the airport is, and know what buses you can take to it, or whether you can safely take a taxi/ rickshaw and approximately how much it should cost. Become the expert. Then you'll know that the ruins that EVERYONE visits, that cost US$50 admission, are actually less important than the ruins off-the-beaten-path that have a $1 admission fee.

 

4) Don't plan too much. Be open to new experiences! Stuff your brain with knowledge, not plans. If the amazingly nice proprietress of your hostel invites you for dinner at her family home, and that invitation turns into an invitation to stay for a few days, go for it! Be very, very flexible. In a lot of places in the world, the trains do not run on time. In fact, "time" is a very slippery concept. Be prepared to take the earlier train if it saves you a few bucks and doesn't screw up anything down the line.

 

5) Network & negotiate--it's all about people and their culture. We don't have a culture of this in the United States, but in many other areas of the world it is completely acceptable and expected that you'll negotiate prices. Do your research beforehand to determine what's culturally open for negotiation and what is not. Learn to negotiate and banter, period. Best way to do this is at garage sales and yard sales, although don't buy stuff you don't need. Also, learn at least some of the language of your host destination. It's a very good gesture. As described in #4 above, talk to everyone. People from the United States have the reputation internationally for being inquisitive and extremely friendly. I have found that, while many of the people I've met do not like my government, they tend to LOVE Americans. Live up to the reputation! Meeting people, experiencing their culture, being invited to worship in their church (don't forget to make a small donation), being invited to sit at their table costs (don't forget to bring a small gift for the hostess)--this is the reason for travel, and it costs next to nothing!

 

6) Get creative! I'm going to South America and I'm not paying for my plane ticket. Whoo-hoo!! How? I'm going on a scholarship exchange program that provides the airfare. Get creative, and don't be afraid to barter. Offer to escort a child on a flight if the parents pay for your ticket. Offer to sew someone's jacket if they wash your pants. Stuff like that.

 

7) A word on souvenirs. You don't need them. Really. People in Mexico don't have snowglobes with "MEXICO CITY" written on them, do they? Uh, no. Bring back the small things that people in your host culture buy for gifts... Bring back your small change... bring back lots of pictures... bring back lots of names and addresses... bring back a single item of clothing that you plan to wear at home... bring back a single shell from the beach... bring back a ticket stub... bring back a swatch of fabric, the packaging of your last meal there (if there IS any packaging), a small stone... bring back memories.

 

8 ) Stay on track. You've done your research, you got yourself there, you're talking to the locals and keeping an open mind, you're focusing on your experience... now don't forget about your wallet! I've found that it's REALLY hard to track my spending in foreign currencies. Why? Because it looks like monopoly money to me! This may be culturally insensitive in some areas, but if you can pay in US dollars, do it. You're a lot less likely to hand over a $50 bill than 38 euros. Go to the ATM once per week and take out the money you'll need for that week. No more, no less. Once the money is gone, you sleep in the park and get $1 tacos for dinner. Actually, you should get the $1 tacos anyway.

 

9) Pack light. VERY light. I will be gone for seven weeks. I'm bringing three short-sleeved shirts, two long sleeved shirts, and two pairs of pants. You get the picture. There are a million and one reasons to travel light, but I think the most important is one of attitude. The more you have, the more you're focused on STUFF, on material possessions, and not on your experience. You'll also have to deal with extra baggage costs on the airline, paying for a porter, etc. You'll be treated more like a tourist, with corresponding cost increases.

 

10) Be safe. You can be footloose and fancy-free, but never compromise your safety. If the $5 hostel doesn't have a lock on the door, but the $8 hostel does, please go for the $8 hostel (you should have a small rubber doorstop in your pack, anyway). If your research says that taxis hailed on the street are unsafe, don't do it--call for a taxi and pay the 10% extra. Hopefully your homework has told you what's important and what's not in terms of safety. Get your shots beforehand--of course, you know the health advisories, you've done your homework! Know whether it's safe to drink the water, or whether you should avoid ice and salads washed in tap water. This is the one point where you sometimes CAN'T do what the locals are doing.

 

And now, for your bonus... probably the most important point... and again, it doesn't have to do with money.

 

11) Be a good ambassador--don't forget to give back. Be patient. Be generous with people who are kind to you. Leave your surroundings in good condition. Offer to help the elderly and women with children. Don't be rude. Learn before hand what is considered rude in your host culture. Laugh at your mistakes and don't take things personally. Be an excellent ambassador for your own culture. This costs nothing but will make the biggest impact on your trip.

[grymoire]

THANKS A BUNCH YS!

 

I tried to rep you again but it said i have to pass on some to others before I can do again to you.

[GeneralLee]

Endgame you want to have at least three months salary in savings. That is, enough to subsist for three months if, for some reason, you lost your source of income. That gives you breathing room if you lose your job to make plans and adjustments and find a new job.

 

I know it seems like a lot, but as long as you don't live beyond your mean, paycheck to paycheck, and can find the willpower to live frugally for a while, it can be done. It being tax time should make this a little easier, as long you haven't spent your whole return yet. Your tax return usually winds up being somewhere around a month and a half to two months worth of salary, so with that you're already about half way there.

 

I know how it can be wanting to spend your money when you get it, especially if you've spent a while without money, but if you want to buy something, and it isn't a time sensitive purchase, sleep on it for two weeks, and if you still can't live without it then, buy it. But usually once that two weeks has passed, you've forgotten about most impulse buys.

[Twist Down]

Might be a bit strange for my age, i am 21, and have 40k saved. Taken about 1.5 years to reach that. Which is almost virtually all that i have earned.

 

I don't mind spending money on stuff i know i will make use of even if it isn't a necessity. I keep a separate bundle of cash, in case there is something i would like to get my hands, a book or clothes or going out & whatever else. So i don't feel as though i am really sacrificing a whole lot, i am just not really an impulse shopper & simply can't stand shopping for the most part unless i am out looking for something i have planned to buy before hand.

 

Fortunate to not have to pay bills really, as my parents look after that, though they are very far from rich. Have been able to keep the discipline, aim has always been to sort of get a head start financially. I guess i am just trying to take advantage of the position i am in currently, as i know it won't last forever.