I sometimes feel so much guilt that we have basically nothing in college savings and are just starting to work on that. But we HAVE prioritized our retirement and our kids will not need to care for us.
The best time to start save for college (or retirement) is 20-30 years ago. The second best time is today.
College savings is nice if you can afford it and choose to, but it would be (and was) very low on my priority list. Short changing retirement savings in favor of college savings is a big mistake, IMO. Lots of ways to pay for college, and it doesn't have to cost 300K+.
My husband and I both worked our way through college, and it was very difficult -- not that we're sorry. Once we finished, we were beholden to no one, and that was good because it took us about a decade to reach "comfortable". It's still possible, but it takes a great deal of foresight and self-discipline.
As a result, we made college savings for our children a priority -- we literally started saving before they were conceived.
That is the only thing I feel differently about. I put my kids college right up there on equal footing with my retirement savings.
Agree. Both are important, and both are easier if you start early (while compound interest is on your side). If necessary, I'd have been willing to work a few more years to pay for my kids' education. I was in my 40s when they were college age, and I was earning a decent wage by that point ... I could earn more quickly /easily than they could at that point.
Almost three years into retirement and my expenses overall are much lower than they ever have been.
I'm two years into retirement and could say the same thing. Two things are killing us though: My insurance is paid through my former job, but my husband's is so expensive. And taxes have soared since the pandemic.
It would be almost impossible to make up for the lost years of compounding in most cases. A dollar put in at age 30 will be worth so much more at retirement than a dollar put in at 40 or 45, it would be hard to make up for that with increased contributions later.
Yes, but it's so easy to find excuses not to start saving when you're young. Someone is living on 1-2K less than you are ... so put that money away every year.
I really believe in paying off your home as soon as you can.
One addition: Don't upgrade your paid-for house. Better to live in a simple little paid-for house than a mortgaged mansion.
But, as they say....the clock is ticking
While we may have a plan to work until ___ age, none of us know for sure we'll be able to keep that plan. I've read that 1/3 of all Americans don't choose their retirement date; that is, 1/3 of all Americans retire because of lay-offs, illness, or family needs. More reason to save while you're young, even if that feels like a sacrifice.