Over half of millennials have less than $1,000 in savings

[juiceweezl]

I've got 12 months expenses in an emergency savings account, a solid amount in my 401k, no credit card debt, another smaller savings account, a Roth IRA I intend to max out every year as well as planning to sink some money in to an IPO when it goes public. I am nowhere near where I want to be, but I'm light years ahead of where I was 10 years ago, or even 5 years ago. My only debt is my house and truck. As I get older, I worry about this stuff a lot more. I find myself going out less, and stretching things as thin as possible just to put a little more in savings every chance I get.

I did go a little overboard with the kids' Christmas this year, and I feel terrible about the amount I spent, and what I could have put in to savings had I not gone crazy. It scares the shit out of me when I think back to where I was right after my divorce. Income was steady, but savings was wiped out and if anything has gone wrong, it would have gone really wrong really fast. I got lucky then, and was determined to not find myself in that position again. I just wish I had seriously started saving sooner. Particularly with my 401k.

I started to quote multiple people, but it was going to get crazy with me ranting, so I'll quote Brent above as I think he makes the most valid points from what I've read. You have to plan -- for yourself and your family -- and not leave others to take care of your shit.

I have 12+ months in the bank, 2 months in the safe at home (along with plenty of firearms and ammunition), 4 car titles in the safe, a rental property that covers 100% of monthly costs, and > $100K equity in my house that I'll have paid off in 8-9 years max (just refi'd this summer). I have the mortgages on my rental and my house as debt -- that's it. The wife and I both have Roths, I have college funds for both of my sons that are off to a really good start, and I have investments in the market as well. The next 3 years will allow us to really get far ahead the way we are planning. I'm fortunate to be in this spot, and that's after I dropped over $15K to move my parents here this summer. I've worked my entire life raking leaves and splitting firewood in my single digit years to yard work before moving to fast food, umpiring baseball games, school maintenance crews, and a box factory while in college. I entered my 20th year with my company a few months ago -- the only company I've worked for since graduating college. To say I'm blessed is an understatement.

To anyone who cries about jobs, college costs, etc., STFU. I had scholarship money because I earned it. My school was free as was my wife's. There is money out there to be had if you work for it. The same goes for work experience. Was it fun working 60+ hours a week in a box factory during summers? No. Was it fun working some evenings and most weekends while my friends at college partied it up? No, but it was certainly worth it looking back. I'll be the first guy to jump in and help someone in need if they're actively trying to help themselves, but screw the whining and crying about something being unfair. Deal with the hand you've been dealt and make it better. It's not someone else's job to pay your way.

[Baron Von Crowder]

i wanted to chuckle at 15 hours overtime too.

serious question.

How do you feel about learning a trade vs a college degree?

[abecx]

To anyone who cries about jobs, college costs, etc., STFU. I had scholarship money because I earned it. My school was free as was my wife's. There is money out there to be had if you work for it. The same goes for work experience. Was it fun working 60+ hours a week in a box factory during summers? No. Was it fun working some evenings and most weekends while my friends at college partied it up? No, but it was certainly worth it looking back.

I agree with this as well, but looking back on it now, I start to think that as Americans we put too much emphasis on working so fucking hard. I actually get told to work LESS from my European counterparts because I tend to let work dictate my life instead of the other way around.

I am not complaining, I absolutely love what I do and get paid very well, but there are times when I think to myself that my work ethic will be my undoing. But to counter that counterargument, I look at my grandpa who is 85 and still raises cattle and has a real estate company that he runs and feel that I want that same life for me ( working my entire life ), because he is able to give back to his kids and and help support others which is what I like doing more than anything.

I guess we are all just different.

[Tremor14]

i feel i am in a much better position going through trade school, and the fact that i was making $40,000+ as a first year apprentice was the selling point. I got lucky and actually learned some shit, but i have some classmates who didnt pick up on things as quickly and they deal with the BS of constant lay-offs, sitting on the bench at the hall etc. I never go to the union hall, and have been with the same contractor for almost 10 years now. I will very likely retire here.

**with that being said, i will likely persuade my son to go to college, if nothing else for the experience.

[matts5.0]

I'm glad I saved as much as I did while I was working in oil, it has made both mine and my wife's career changes so much easier. I have plenty in savings, but I'm 29 so not sure if I qualify for the conversation.

[bcoop]

i feel i am in a much better position going through trade school, and the fact that i was making $40,000+ as a first year apprentice was the selling point. I got lucky and actually learned some shit, but i have some classmates who didnt pick up on things as quickly and they deal with the BS of constant lay-offs, sitting on the bench at the hall etc. I never go to the union hall, and have been with the same contractor for almost 10 years now. I will very likely retire here.

There is nothing wrong with learning a trade. There are already certain trades that pay more than office jobs requiring degrees. I feel more trades will be in the same situation in the coming years. There is already a shortage of skilled trade workers and the demand is going to drive wages up.

[dcs13]

serious question.

How do you feel about learning a trade vs a college degree?

To me its the individual. Face it, some people are far better off learning a trade. I know some great A/C guys and welders that make 6 figures.
Sounds silly, but if you enjoy what you're doing and can make a living, to hell with what others think.

And bagging me on the 15 hours, I don't need it. Its fun money. I worked tons when I was younger.
I've been at my job almost 30 years. I started when I was 18 and DID make some good decisions when I was 18. Was on my own at 16. No I'm not the norm, but I had the drive. Yes same job, same employer. Made good decisions based on my current position/credentials.
So cry me a river on the debt. There's ways to do it without debt. Many are just too lazy to do so. Some are just too stupid and think the free money hand out has no long term reprucussions.

[juiceweezl]

There is nothing wrong with learning a trade. There are already certain trades that pay more than office jobs requiring degrees. I feel more trades will be in the same situation in the coming years. There is already a shortage of skilled trade workers and the demand is going to drive wages up.

The workforce needs trade/skilled workers, but there is another reality that has to come with it. If you want the 4K square feet house, the $85K car, all the toys, etc., then don't expect to have those things doing trade work unless you inherit money or marry money. Sure, you can work your ass off for many years and then have them, but it's going to take a long, long time. People get paid based on value, and this belief that people should all be paid enough to afford whatever they want is absurd. The answer for someone in a trade right now is to capitalize on the growing demand and build your own company. That would allow you to have choo choo money in a trade field.

[bcoop]

People get paid based on value, and this belief that people should all be paid enough to afford whatever they want is absurd.

I didn't claim that. I'm a big believer that everyone is replaceable, and too many people think they deserve way more money than they actually do.

[jakesford]

There is nothing wrong with learning a trade. I had friends that went to college because they were supposed to. Many of them either never got a degree, or they are working in something completely unrelated. Each of them would have been better off going another route rather than wasting $$$$ on a couple of years of partying. College for me was the price of admission to my profession, but I worked through school and graduated with $5k in CC debt and no student loans.

The one thing that you get from college is a whole new network that I still use 10 years down the road. I've gotten job/investment opportunities from college friends that I would have never known about otherwise.

[Nash B.]

Which to me is stupid. Don't borrow money for stuff you cant afford. Get a job, work your way through school. Novel concept. These whiny bitches want their debt forgiven because they "were preyed on" and now they cant get a job with that Cultural studies degree.

Or borrow for a degree that will earn you enough to pay it back.

[Big A]

I'm also on the list of those doing well enough without a college degree, most of my learning has come from years and years of work experience, I made the conscious decision to go ahead and start working full time. Had I kept going down the college road, who knows, I may have actually ended up in a less lucrative career. I'd have that little piece of paper though by golly.

I'm also one that has learned the hard lesson of not keeping much in savings, man that sucks. We are there right now due to spending a chunk furnishing our new home, but were already well on track to get savings built back up when work blessed me with the ability to fast-track that.

In the past I'd honestly have no problem with having only a little savings, but today it's downright uncomfortable, regardless of having contingency credit cards. Partially due to having a family to take care of, but also in big part to just simply growing up. I don't think this is isolated to the millennials specifically, I think it's more indicative of the age group, and their priorities, and lack of life experience. Do you honestly think that the majority of 25 year olds back in the 50's and 60's were packing away every penny?

[Baron Von Crowder]

i feel i am in a much better position going through trade school, and the fact that i was making $40,000+ as a first year apprentice was the selling point. I got lucky and actually learned some shit, but i have some classmates who didnt pick up on things as quickly and they deal with the BS of constant lay-offs, sitting on the bench at the hall etc. I never go to the union hall, and have been with the same contractor for almost 10 years now. I will very likely retire here.

**with that being said, i will likely persuade my son to go to college, if nothing else for the experience.

That's pretty much the same story I hear over and over again. We're very close in age, and It's interesting to see how my friends that have some sort of trade vs my college graduate friends are living life now, since we're ~15 years out of highschool.

There is nothing wrong with learning a trade. There are already certain trades that pay more than office jobs requiring degrees. I feel more trades will be in the same situation in the coming years. There is already a shortage of skilled trade workers and the demand is going to drive wages up.

Im a huge fan of the skilled labor force. I'm reasonably sure you and I have had that conversation before.

To me its the individual. Face it, some people are far better off learning a trade. I know some great A/C guys and welders that make 6 figures.
Sounds silly, but if you enjoy what you're doing and can make a living, to hell with what others think.

And bagging me on the 15 hours, I don't need it. Its fun money. I worked tons when I was younger.
I've been at my job almost 30 years. I started when I was 18 and DID make some good decisions when I was 18. Was on my own at 16. No I'm not the norm, but I had the drive. Yes same job, same employer. Made good decisions based on my current position/credentials.
So cry me a river on the debt. There's ways to do it without debt. Many are just too lazy to do so. Some are just too stupid and think the free money hand out has no long term reprucussions.

While I am much younger than you, I feel from that you and I have a lot in common, from this statement.

The workforce needs trade/skilled workers, but there is another reality that has to come with it. If you want the 4K square feet house, the $85K car, all the toys, etc., then don't expect to have those things doing trade work unless you inherit money or marry money. Sure, you can work your ass off for many years and then have them, but it's going to take a long, long time. People get paid based on value, and this belief that people should all be paid enough to afford whatever they want is absurd. The answer for someone in a trade right now is to capitalize on the growing demand and build your own company. That would allow you to have choo choo money in a trade field.

While I will not disagree with the fact that business ownership will generally net a higher wealth, I do know some guys with a specialized skill that are clearing six figures and living comfortably, working for someone else.

[46Tbird]

Young people think that every penny they get must be spent on crap like Beats by Dre ear buds and the latest iPhone. As long as having that shit is more important than having a grand in the bank, they won't have a grand in the bank.

I think another big contributor here is the nation's education system. The "single path" that takes a student from K-12 drops them off at the curb with:

no marketable blue collar or white collar work skills, making secondary education damn near a requirement
no interview skills
no credit or personal finance education
a complete lack of inspiration and ambition

[Baron Von Crowder]

Young people think that every penny they get must be spent on crap like Beats by Dre ear buds and the latest iPhone. As long as having that shit is more important than having a grand in the bank, they won't have a grand in the bank.

I think another big contributor here is the nation's education system. The "single path" that takes a student from K-12 drops them off at the curb with:

no marketable blue collar or white collar work skills, making secondary education damn near a requirement
no interview skills
no credit or personal finance education
a complete lack of inspiration and ambition

+ any clue of what they would like to do after college.