Is that so? While you’re predicting the future, do you mind telling me how my mum’s court case is going to turn out?

I am 26, and most of what he preaches does not apply to me. I have 1 child and am already married. Obviously I am not saving for a marriage or a wedding ring. I just bought a new car (Honda Odyssey Touring) in cash and am not in the market for another car down payment. I also recently bought a house with more than 20% down. Those things I am not saving for at all.

I do save for the future on top of maxing out the 401ks. I call it a slush fund and just put extra $$$ in there that I am not really spending. We make too much to qualify for a Roth IRA.

I already have more than 9 months of living expenses saved up ( a combo of e-fund and “long term savings”). We contribute to a 529 every month, and vacations can be paid for out of the excess funds we have from our paychecks every month. We also contribute a large amount to charity.

I am suffering from a difficult, albeit understandably enviable, position of having more than we need. I am looking at what else I can save for and what I can do with the rest. My only short term goal is to pay off the mortgage.

But first of all, most people are middle aged before they can even afford to max retirement accounts and save anything more (if ever). Second, even if you have lots of extra cash flow for saving, it’s ridiculous to try to put labels on what WILL be short term goals so far in advance. Those goals will change.

But seriously? I’m supposed to be saving for my potential wedding and house and kids? No way. House, maybe, if I had any intention or desire to buy one in the next 5-10 years. But I have a theory about wedding expenses; if you can’t save enough to pay for it during the length of the engagement, then you can’t afford to be spending that much on a wedding (or you need a longer engagement). I think it’s crazy to be sacrificing anything now, in my fun & frivelous independant prime, to prepare for a one-day celebration that may or may not even ever happen. And kids?! How about, when my future maybe husband and I decide we want them, we make sure our ducks are in a row to pay for them and continue to save for them throughout their lives. I’ll have 18 years between birth and college to prepare for that expense, and again, if I can’t manage to save a couple thousand for a vacation over the course of any one year? I shouldn’t be taking that kind of vacation. I hope to be living that kind of lifestyle later in my life, but not unless I’m earning enough to pay for it later in life. That $6,000 per month (if I had it, of course) would actually be way better served if I were to add it the retirement pot now and paid lower amounts into that as I got older and had the additional expenses to deal with.

Wow, sorry – that got kind of out of hand, length-wise. In short? I think he’s a little nuts.

I want to get through the next 5 years first.

So it all gets lumped into the Future Fund, and I trust that Future Little Miss Moneybags will know when to convert some or all of that money into a Wedding Fund/Car Fund/House Fund/Kid’s College Fund. (In a way, really, I’m just putting off the decision, but not the savings. That’s procrastination I approve of!)

Just my two cents

That’s it.

Even if I have kids and want to spoil them etc…

I’m saving as much as I can now, just for “whatever”, which includes traveling and retirement, kids and a home even… but to set specific goals?

Who’s to know if I want a home after all? And what the price may end up being? Higher? Maybe lower?

Naw.. I’d rather just save it all in one big fund.

I saved for my wedding a little before we were engaged (I called it a car fund. Even though I knew it wasn’t. ) But only for a few months.

I think it is somewhat a difference of whether you love earmarking your savings or just lumping it all into one big cash fund.

His strategy is important for those who aren’t already focusing on savings because they aren’t sure what to save for. I don’t think you are his target audience.

You can do both. You can accept his point that you are going to have these big expenses, and just plan further in the future, or call it the Future Fund.