Secrets of the 401(k) Millionaires

[AnneD]

10. Again, you can save at any level....

but the odds favor those with a certain level of income and the blessing of good health, fewer children, good marriages, and steady jobs (this extracted from the list of top reasons for bankruptcy).

Five percent (your top estimate) of 20K is only $1,000. My experience is that most of those 20k jobs have no insurance. One good trip to the emergency room can wipe out a years worth of hard savings.

Most automatic deduction 401 or 403 require at least $50 per month and your money is tied up, leaving you only a cushion of $400 per year in savings account for real emergencies. All that scrimping and for what. Your 401/403 interest earned is eaten up by fees, so much so that the compounded interest on you passbook savings looks better. Even buying a silver coin per payday is proving to pay a better percentage and still have the liquidity someone of lesser means needs.

My point is...it is easier to save if you earn more and 401 and 403 are no longer the best vehicles, esp if you are on the low rung of the ladder. Been there done that, kept the raggedy tee shirt as a reminder so I would not be so quick to judge others percieved shortcomings.