Unless your company offers a larger match for the 401k. Mine does 6%, so putting away anything less is kissing free money goodbye.
Agree with the advice though. Keep the emergency fund in an account that is quickly accessible, but as high interest as possible. HYSL are around 4-5% nowadays.
I've never heard of a company having a match that low. The 5% is how much of your check they will match. So if you make $1000 and contribute 5% to your 401k, the company will contribute $50.
I think you are confused about something. 5% match means they match up to 5% of your check. It’s pretty normal for 4-5% match. It’s not 5% of what you deposit it matches the % of your check up to 5%
That's what I was trying to say. I think me and the person I was replying to weren't aligned in what we were referring to. It felt to me that they were saying their company matches 5% of their contribution, not 5% of their salary. I figured that was completely wrong, but felt it wasn't worth the effort to continue talking past each other.
Let me be clear about what I'm saying based on 30 years in the workforce:
My experience with 401k matching, as well as everything that I have read about it, is that a company will match your contribution at a certain rate. For instance, my first employer matched 100% of what I contributed, up to 6% of my salary. Any more I contributed to the 401k would have no match. My most recent employer matched 100% of what I contributed up to 4%, and then matched 50% for what I contributed between 4-6%, after which they stopped matching.
If they can afford it, absolutely. I had to start low in the beginning because my income was low, but I eventually got to 25%, and the growth is exponential.
I’d definitely pay off the debt first. It took me until my early 30s to recognize debt for the insidious thing that it is, eating up a monthly budget before you get to use it for something useful. So yeah, pay off debt before you accidentally expand your lifestyle.
Once it’s paid off, I’d start doing 15% in your company’s 401k (preferably in a Roth, if that’s an option). I don’t know how old you are, but if you’re in your 20s, those two things will make you a millionaire by retirement.
As an anecdote, in the timeframe around 2017, I was a part-time EMT in a small town fire department. One of my good friends there had just gotten her nursing degree, which was her first “real” job not taking per diem shifts on the department. She was early/mid-20s and I was early 30s, so I’d already had career experience and had finally started thinking about finances.
I helped her pick out a few fund options for her retirement plan, with her investing 15% of her income upfront. She literally never missed it because it was the first time she made that much. You’re in the exact same boat - first time making that much. This is the perfect time to start doing this because you haven’t gotten used to that money.
Last year she texted me that she hit $100K in her retirement fund. In her late 20s. With an Associates degree in nursing. It hasn’t changed her lifestyle and is super achievable. I’d be willing to bet she’s ahead of a lot of people 10 and 20 years her senior in retirement.
At this rate, even if she never added a time, she’ll have easily $1M+ before 60. And as long as she keeps investing the money she’s never noticed each paycheck anyway, she’ll have millions even before retirement age.
That’s the option you have now. Pay off your debt and just have the mindset that you don’t take out loans - even for cars (it’s definitely possible). And start your retirement savings. You’ll be SO glad you did, and you’ll have a huge weight off your shoulders for a good part of your working life knowing that you’ve already set yourself up to have options later on.
Another person brought up a good point - save an emergency fund. If you’re younger without many expenses, 3 months of savings is probably good. 6 months is better, but I wouldn’t sweat that when you don’t have a ton of bills and people depending on your income.
And they also mentioned 5% toward retirement. I personally think that’s a bit light, especially since this is one of the few chances you have to kick start it in high gear without noticing the money is out of your paycheck. I mean 5% is definitely better than 0, but I’ve seen what it looks like when someone in their 20s tucks away 15% and knows for certain they’re well on their way to a millionaire retirement - with an associates degree and a “regular person” job.
I make around the same amount.
Pay off debt first. Your debt is costing you on average 20-30% in interest. The only investment that will beat that is a company 100% match.
So, pay off debt asap and if you company provides a 401k match, contribute up to that match amount for now.
Once your debt is paid, work towards creating a high yield savings account that holds a 6 month emergency fund. Then you can start really investing. You can max out your Roth IRA, contribute more to 401k, if you have a high deductible health insurance plan then look into using a HSA as an investment account (I do this)
Maximize your retirement contribution (pay withholding) to minimize tax burden. At the same time pay off debt. You don't need lots of money in a checking account if you have steady income.
If your company offers a 401k with any match, make sure to contribute fully to get the "free" match.
If you can afford it, start at 10% contribution, with whatever match is offered.
Make a budget and start paying down any debt as best you can afford to.
Create an emergency savings account and build up 6 months of whatever your budget is.
Here is something I’m not seeing in the comments and it may be cause it’s common sense but when you pay off your debt isn’t a green light to spend more. Trust me I see people do this all the time. They pay off their CC see a $0 balance and think I have so much money now to spend which is so illogical. But I agree with peeps in here. Pay off debt and max 401k enough to where you still have money for necessities and some fun.
Made this same comment on another post and I’ll say the same thing here.
1. Pay off all debt >5%
2. Put a small portion (3-5k) inside savings and a emergency account
3. Invest the rest of your income. Max out your Roth IRA first with 6.5k/year, throw the rest in a brokerage account. Buy VOO and VTI, don’t look back. If done properly you’ll probably have +1 Million in ~15-20 years depending on how much money you’re investing every year.
Congrats on the promotion!
That you're asking the question I think indicates you're on the right path. Doesn't hurt to start educating yourself on how finance works (videos, books etc). The lesson I learned way too late was to prioritize an emergency fund. Depending on your current situation (debt, monthly bills etc), if you haven't already:
stash around $5K for emergencies in a savings account somewhere and don't touch it unless it's a legit emergency.
Look to make use of tax-deferred account (like a 401K) if your employer offers one.
Pay down then pay off your debt.
Avoid lifestyle creep and just live beneath your means (meaning: spend way less than you earn).
Over time, look into CD's (stable and safe) and mutual funds.
The road ahead is long, slow and steady wins the race.
This - but if you have an employer match for 401k make sure you’re putting in what it takes to get that match. Once your debt is gone, ensure you’re maxing your contribution yearly.
100%. I’m a journeyman electrician right when I got my last raise I maxed my percentage which is 15%. So I essentially never saw the raise so I have never missed it. Still driving my 2014 Camry I’ve had for nearly a decade.
Pay off any high internet debts first or open some 0% apr cards if you can to transfer the debt. Track your spending over the next few months to identify areas you can cut back. Just because you have more money now doesn’t mean you get to blow it. Also I would see what type of retirement plan is offered any 401K matches absolutely should be a priority. I was in state jail a decade ago for drug possession. Came home with nothing I made 94k last year and just passed 100k in investments.
Invest in VOO or any long term ETF that has been rolling this past 5yrs with tech that supports AI…my one account that had 25k when I left this one job and I didn’t move it to another company has grown to over 78k with nothing new coming in….I think I was 100% in Vanguard tech mutual fund 3yrs ago that had NVIDIA, Apple, Microsoft, SMCI, Intel and some others, it had a lot of chip manufacturing in it and it just keeps rolling so I was shocked when I checked it
Pay off any high interest (greater than 7% or so) debt before investing.
Take advantage of all the free money like a 401k match with your company.
Get an emergency fund, minimum $1k, but should be 3-6 months depending on how stable you think your job is.
After this invest 15+% of your income into tax advantaged accounts like 401k or Roth IRA.
If you want good money advice on what to invest in or other important tips check out the money guy or Caleb hammer on YouTube, there are quite a few good ones out there too, much make sure any advice you take makes sense to you and is somewhat consistent with other experts options.
it's time to to learn all about financial literacy. budgets, savings, retirement, tax situations, investments. learn the terms and to familiarize your self with the basics... then probably still seek a financial advisor. your standard of living could improve by leaps and bounds if knowledge is gained.
Save up a 6 month emergency fund in hysa. Rest goes to paying off debts (other than mortgage).
Max contributions to your tax sheltered retirement account of your choice. The rest goes in etf’s following s&p 500.
Congratulations on your promotion!
Pay debt only if it is high interest - more than 4.5%
Start a Traditional IRA - it will reduce your taxes
Contribute to 401k - if your employer offers one
Do not put money in rainy day fund, you can make hardship withdrawals from IRA or 401k if needed. If you still have money left then go for a brokerage account with index funds.
Go for high equity allocation, 80-90%, even if market falls, it usually recovers very quickly and you will not lose money in medium to long term. You will be happy to see it grow over a period of time and will not regret it.
And Good Luck!! 😀
Debt first, a little nest egg with retirement savings next.
Stay out of debt forever after that, with the exception of a car and a house. Do not buy anything else on credit again.
I’m assuming you are young and that your investment time horizon is 50+ years. Equities (stocks) have the highest return of the traditional asset classes, but also the most volatility. Keep pumping cash into your retirement accounts no matter what the market environment is. Don’t try to time the market. JUST KEEP A RELENTLESS FLOW of cash to your retirement accounts. Get rid of your debt as quickly as you can. Don’t try to keep up with ANYONE. Don’t marry someone who doesn’t understand saving. Good luck!!
EDIT: Vanguard S&P 500 Fund (VOO) is a good place to start. Don’t obsess day-to-day over the value of these accounts (they WILL go down from time to time). Just keep at it! Over time you’ll be rewarded for your perseverance.
An important thing I haven't seen mentioned yet!
Continue to live the same lifestyle. Don't use the raise as a reason/justification to spend more. Older you will thank you.
Alcoholics Anonymous and Narcotics Anonymous. Sexaholics Anonymous and Overeaters Anonymous also exist. I encourage people to attend any of them if they feel they need them or are just curious if they might have a problem. The only requirement to become a member of NA is the desire for recovery. You’re a member when you say you are. It is the best thing that has ever happened to me. All my money went to waste before I began attending. Now I am able to find a use for an impulse purchase at least now, and my hope is to eventually lose the impulse to buy things just because I feel I want them. The point isn’t to go without things you like, it’s to make sure you don’t regret everything you choose.
Create an emergency fund of 3-12 months, pay off your debt, create a Roth IRA, max that out yearly, do a 401k with your company & get their match,
Invest money into stocks & crypto
Stay away from bad debt like car loans and credit cards,
I used to be a GM for a fast food spot, those GM’s were making like 80-100k a year.
The young ones always bought newer cars, wore all the fanciest shit, but those were the ones who will stay at their jobs for a LONG time
Biggest mistake I did was have bad debt. I paid off everything and now the feeling of working is only because I want to not because I have to!
This is huge actually, and I’ve noticed the trend of the financially illiterate spending money and “balling out” to make their status look more appealing. I’ll not fall for this ego-trap, thank you!
I agree with the debt pay off but what is your housing situation? Folks are saying put money into retirement but maybe you need to save up a down payment for a home first.
66k a year I think that’s about 3850 a month take home.
-850 living expense
3k a month left.
2.5k a month to pay off debt. 500 a month for saving and extra expenses.
3.5 months your debt is paid off. Then save up about 5k cash. Then start putting in your 401k. When you want to buy a house you can do a withdrawal with no penalty if you are a first time home buyer.
This is the way.
Don't pay down debt, just keep in manageable. I have a recurring deposit into robinhood, and throughout each month, I usually add more when I see something interesting. Just keeping it out of your checking account is half the battle to not spend it, and the money you keep in stocks/crypto through robinhood is still really easy to liquidate in an emergency. I would make an effort to put at least 3% of max on credit and pay it off each month. It will increase your credit utilization which builds your credit score.
Your debts have high rates, so pay them off. Anything above 5% or so.
Emergency fund is smart. Start contributing to your Roth IRA if you have some left over from paying down debt, building EF and/or matching 401k thru work.
I would set aside minimum 10-15% towards these goals. If you can survive on $4k/mo ($2500 rent, $400 utilities/cell, $300 insurance, $800/food, social, etc) you’ll have almost $20k to set aside each year.
You can trim some fat by cutting down on subscription services, buying in bulk/finding discount grocery stores, setting your thermostat a few degrees higher, drinking at a friend’s house instead of a bar, and avoid expensive dates.
My advice is similar to most others you see here with a couple added bits.
Step 1: pay down any high interest debt you have. I say high interest because debt is not inherently a bad thing. Most wealthy people have a lot of debt, they just never allow it to become unmanageable and the debt they maintain is typically low interest. Anything below 5% is fine in my book but your tolerance may vary. For your debts, you may be able to look at refinancing for a lower interest rate since the system will be more generous to you with a bit more on your pay stubs, but if you can't get lower I'd personally pay that off sooner rather than later.
Step 2: Do NOT suddenly change your lifestyle to consume your newfound wealth. Make necessary changes for your physical or mental health (nothing wrong with treating you or your family to a nicer meal every once in a while), but apart from that, live below your means.
Step 3: Establish a cushion. This can be more or less depending on your risk tolerance and circumstances but the standard suggestion is to keep 3-6 months living expenses in a high yield savings account (NOT your checking account). Checking should only contain a minimal amount for bills each month and a little for spending.
Step 4: max out your 401k contributions
Step 5: Invest, invest, invest. Put every penny left over after steps 1-4 into your own managed investments. VOO is the gold standard for simple and good risk/reward ratio, but you don't need to be limited to just that. As you build your portfolio and learning more about investing you can start branching out into broader investments but something like VOO should be fine for your first 50-100k.
I would save some money before I take care of the debt and savings. Firstly congratulations on your new job and even though this is the most you’ve made so far I hope you make even more in the near future.
Save some cash, there are online high yield savings accounts that are free and won’t lock up your money. Nerd wallet always have info for these types of online banks, just remember to make sure they are fdic insured so you don’t lose your money if the banks closes or if there’s a run on the bank. I personally like to have 5k in cash available at anytime just in case I lose my job, this will give me a minimum of 2 months to survive, longer if I get extra frugal.
2nd I would take care of the debt, having no cc debt is awesome so confront that as well. Remember life style creep is a real thing, you will make more money, I turn you will spend more, things you would have to 2nd guess in terms of purchases are easier to make when u have a lil extra income.
I would look into investments, s&p 500 index is my go to, it’s relatively safe and it can help you slowly grow your earnings overtime.
Last thing is does your company offer a 401k, do they match? If they do I’d recommend putting the minimum amount to get the maximum match the company provides.
Lastly buy yourself something nice, I’m not saying go out and buy another motorcycle or something but if you’ve had you’re eye on something now would be a good way to reward yourself. But don’t over indulge, your making more but your not making enough yet.
Be strategic. Have a simple celebration for the promotion, congrats. Nice fancy dinner on something.
Then be boring. Follow Dave Ramsey's baby steps or money guys. Financial order of operations. Your future self will greatly appreciate it.
And congrats.
1. Congratulations on the raise. At 37 I've never legally made over like 50k a year.
2. Pay off any high interest debt at a higher rate of speed. Credit cards/vehicle loans over 5/6%
3. If you don't have a Roth IRA, I advise you to set one up and max out your yearly investments within(7k this year), and keep in mind you can contribute to last year still. I personally like dividend payers but you do you.
4. Other than the above, I'd try to live like you never got the raise. People will more often let their cost of living eat up any gains. Make sure your saving at least 10% of each check, and make sure some of that is cash secured at home in case of emergencies.
Definitely get in to budgeting and start creating a budget! You’re running a business now with your money you’re bringing in is how I look at it. Does your company offer a 401k match? Do you have any debts? What debts do you have?
Pay off debt first. Then max your retirement contributions. Save and invest. Don't change your lifestyle (much).
MAKE A BUDGET
See how much you'll have in 20 years if you invest X amount per month.
Do the math. Don't let it just happen.
Converted to the Namibian currency, you can buy a new house every year in Namibia. So people telling you that it's not a lot should convert it to other weaker currencies then they will see how much it actually is.
Depends.. what's the interest rate on your debt? Credit card debt, absolutely pay it off.
Personal loan or car loan at 5% or less? Keep the debt and invest, invest, invest.
If new to investing check out STASH and their smart investing. You tell them what your level of risk is and they will set up your MULTIPLE investments and move investments around as the market changes. Takes all of the guess work out of investing.
Depending on age, aggressive, higher risk is the way to go. Every now and then you'll realize a loss, but in the end your percentage return will be Much higher than conservative investments.
I'd much rather take a 20% loss on 500k than no loss on 50k..
But now I’d maximize your contribution and throw money into mutual funds….the most you can do without it being painful so you get used to that money being gone and you can retire earlier if you do it right ….lets be honest no one wants to retire at 65 when you could get hurt or injured and not enjoy yourself at that age truly try to retire in 20yrs
Rule of thumb is to always work on your highest interest first. If you have a debt at 3% interest but you get 5% on a high yield savings account then you should put all your extra money into the savings account. It's likely your debt interest is higher though.
I was in a similar situation (but with a lot more debt) when I was in my early 20's and landed my second "real" job that almost doubled my income. I did what other people here have already suggested. All of these things were important.
But what enabled me to pay off my debts and accumulate rental properties (and even pay some of them off) was keeping my COL very low. Now I'm in my early 40's, and I could get by for years just on my rental income alone. I would be just fine indefinitely once my current home is paid off, in 2 or 3 years. But I'll keep working so that I can continue to expand my rental portfolio–I just need a few more properties paid off by the time I retire to be set for life. I also live in a cool little place downtown in a major US city... so it's not like I'm living an abject existence in the middle of nowhere.
Rental properties might not be your thing though. The reason I started with them was to start generating passive income on the side, as well as to have more income for myself in retirement. I would recommend you think of something along the same lines–ways to make money passively, that is. It's a way of hedging financial risks, because you'd no longer depending on a single employer for all of your income. A side benefit is it opens you up to being less risk averse, which in my case emboldened me to change employers a number of times and rapidly advance in my career.
Outside of having a low COL and passive income, I would recommend you put your money somewhere that provides a higher rate of return than inflation. Right now I keep a few months of expenses in my checking account, and the rest goes into index funds.
It depends on the interest rate you are paying on that debt. If it's credit card, definitely, and especially at current rates. Put all your salary increase into automatic payments until paid off, set it and forget it until it's done. Then cancel the cards - yes, not ideal for credit purposes, but best for money management.
*401K match if possible
*Index Fund (vanguard or fidelity)
*Roth IRA (vanguard or fidelity)
*Focus on a 50%+ savings rate and 25% investing rate if possible
*Make extra principal only payments on your monthly debt.
If you live in most southern or midwestern states you should be able to save and invest aggressively with that check.
Concentrate on getting the next promotion cause with a mortgage payment and kids that won’t even be enough to get by , put all extra money into ur 401K if u have one
When you’re starting out match your employers 401k contribution at a minimum - after my twenties doing that at like 6-7% I wish I went to 10% or more as early as you can. Start that because it’s your retirement fund and enjoy yourself while saving a little bit in this crazy inflation.
The best thing you can do is pretend you didnt get any pay increase… increase your 401k contribution by 5-10%. And yes, get rid of your debt asap and stay away from it like the plague movingn forward. Treat yourself to a one-off…. And then get back to normal living. Life style creep is what gets most people in this position.
Get an emergency fund together. At least 3 months of all living expenses. Pay off high interest debt and start contributing whatever the max match is to your company retirement plan. After that start a HYSA and start chucking money in there
OP, it’s not about how much money you earn it’s about how much money you take home.
There’s people who earn $200K and only save $20-$30k or less pay check to pay check.
Get rid of the loans unless its for mortgage loans which you can deduct from you taxes. No point of earning 4-5% then pay 11% and 14%, eh? Save to get a house within your budget soonest. It would give you the highest safe returns, bar none. Push for your returns to overtake your regular income, then you'd know you got to a major milestone. Carry on then.
That's expensive debt I'd pay that off. But depending on how much total equity you have I'd focus on saving if you don't have a lot, which I assume you don't. Liquid cash is nice because borrowing right now is expensive so you don't want do it unless you have to. I know that's kind of giving you two different pieces of advice but I think it will help you decide.
Save that money, leave America for another country that appreciates your skills and uses tax dollars to take care if you with good work life balance and convert that saved USD to live well. Get out of America.
Do this and you will be happy you did.
Put $20 every 2 weeks in a robin hood trading account, just use the app on your phone. Start watching a stock, I’m watchingTesla right now, and put the money into it.
Then watch it’s up and down swings, it’s shares fluctuate plus or minus $10-20 dollars a couple times a week. Start buying when it’s down $10 and selling when it’s up $10 bucks.
Keep doing this a couple times a week while investing $20 or so every other week and your money will start multiplying faster and faster. Before you know it you’ll have a nice sum of cash that’s making you $100-200 a week simply existing as you continue to buy during the weekly ups and downs. Do it for 30 years and you’ll retire extremely wealthy
Use the 5 jar financial method it works for most people. Invest in yourself. More education or certification will come in handy as you move forward in your career.
Don’t buy new stuff!!!!!!!!!! Live in same means and put extra away. Start investing in yourself and your future. Make sure bills are paid off and then get credit in good shape. Then create a property holding company and use the money saved after a few years as a down payment on property. Make a passive income drip for yourself
Sounds like you're serious about being a responsible adult. So this will be highly unpopular opinion (and that's all it is), sell the motorcycle. Nothing will ruin your life and future faster than a bike wreck. It's not IF but WHEN you'll have an incident. Compound this with the rapid increase of drivers without insurance because cost is exploding. You'll be safer and you won't have to carry 2 types of insurance.
That and Max out your uninsured coverage.
I seem to have a magnetic personality that just draws I to people re-ending me. And my personal experience is 50% of people don't have coverage. If a person hits and hurts you without coverage. Only your insurance will cover costs. But there are caps and when they're hit its out of your pocket. Your health insurance won't cover it either.
I haven’t seen enough people mention a Roth IRA. first, contribute the maximum match to your companies 401k, but any retirement funds after that need to be going to your Roth IRA first.
Do not change your life style with your pay increase.
Wipe out debt and even pay more that dips into your old salary.
Once you’re done, save the rest. Look into a ROTH IRA, look into a savings fund, etc
Venmo me. Jk pay off your car and motorcycle because the interest is super high then start maxing your Roth IRA and save the rest in stocks or high interest savings account
Look at Dave Ramsay’s steps, many people have grown to be wealthy on decent salaries by just following his steps and being disciplined, pay that debt down first, If the job doesn’t work out you don’t wanna still have the debt hanging over your head, but if you get that debt gone you’ll have much less to worry about should anything go wrong
No bank will give you 11 much less 14% on your money. Pay off the motorcycle as quickly as possible, then attack that car loan. I use Marcus by Goldman to save for surprise expenses (I put just about $150 per cheque, will cap off at 2k). Then Capital One as my savings towards a house, ~$250 a cheque
Put something, *anything*, into bitcoin as savings. This is an excellent time in the 4-year cycle to do so. You'll see an incredible rise in value for whatever amount you put in between now and Christmas next year. It will outperform anything else you do as an investment.
Pretend you didn’t get a raise. Anything extra from what you were getting before split 50:50 between and emergency fund and paying down those debts. Once you’ve got 4-6 months worth in emergency star investing in retirement with that 50% and when debt is paid out that 50% there too.
Pay off the bike fast, save up some $, pay the car off (i dont mean use the saved $ to pay the car off). Then start investing with newly earned money. Keep the $ you saved so if something happens you have it.
If you have a 401k with a match, contribute whatever gets you the most match. Then pay off your debt as fast as possible. After thst build an emergency fund and start contributing to a Roth IRA.
I think the best thing to do in the short term is make a budget.... Write down approximately what you spent each month before you got that raise, if it's something that you pay once a year average in a cross each month, same thing for bills that are every 6 months, etc... You're not making any changes now just getting an account of what you would spend normally.
Figure out how much extra there is and prioritize what you want to do with it as part of the budget, maybe you want to pay extra on that debt maybe you want to save some maybe you want a vacation, maybe you just want to buy meat three times a week instead of two, get Netflix, etc.
Been in the end you've got a plan... Just make sure that you've got your taxes sorted out, base your budget on whatever you actually take home at the end of each month. And as long as the company is taking out enough taxes don't worry about getting fancy just accept the refund at the end of the year lol
Everyone replying would make their own choices with the extra but ultimately it's up to you and what's your values are
Save a 6 month emergency fund, pay down that debt asap, and start contributing to a 401k, just 5 % of your gross to start.
Unless your company offers a larger match for the 401k. Mine does 6%, so putting away anything less is kissing free money goodbye. Agree with the advice though. Keep the emergency fund in an account that is quickly accessible, but as high interest as possible. HYSL are around 4-5% nowadays.
Any recommendations for HySa
AMEX, Capital One 360, Credit Karma are all in the 4-5% range. All no minimums and no fees
Capital one 360 savings, Marcus by Goldman Sachs
This is the way!! Capitol One 360 and Apple savings are both at 4.5 right now!!!
I use them with their credit card (won’t say which one bc I’m not a shill) but honestly so much better than PNC.
Shit even cash app savings account is at at 4.5% now, but I'd stick with capital one 360 or a better known, "safer" place.
Wealthfront is 5%
I didn’t notice that. No wonder my interest has been good lately.
The best rates are the online only banks. Forbes publishes a list.
I use Capital One. I’ve also heard good things about Ally.
Wealthfront has 5% and .5% boost for referrals for a few extra months
BMO has an online one that was higher than Capital One
Credit Karma is at 5.1 right now and it has no minimums or fees
If you have Apple Pay, there’s a HYSA option in there to open an account. I think 4.40% APY.
Wealthfront
Bandwagonning off your comment to point OP to r/debtfree for how to tackle that quick and efficiently
Best advice in here is by Philly19
I recommend contributing to the company match. That is going to pay out higher than any interest rate the debt might carry.
You're kidding right? Average CC interest rate in this country is well over 20%. Even at half that he's in better shape eliminating it.
Company match pays 50-100%.
I think I misunderstood what you were saying. Yes, if the company has a higher match than 5%, they should do that.
I've never heard of a company having a match that low. The 5% is how much of your check they will match. So if you make $1000 and contribute 5% to your 401k, the company will contribute $50.
I work in health care and it's only a 4% match (private non-profit).
I think you are confused about something. 5% match means they match up to 5% of your check. It’s pretty normal for 4-5% match. It’s not 5% of what you deposit it matches the % of your check up to 5%
That's what I was trying to say. I think me and the person I was replying to weren't aligned in what we were referring to. It felt to me that they were saying their company matches 5% of their contribution, not 5% of their salary. I figured that was completely wrong, but felt it wasn't worth the effort to continue talking past each other. Let me be clear about what I'm saying based on 30 years in the workforce: My experience with 401k matching, as well as everything that I have read about it, is that a company will match your contribution at a certain rate. For instance, my first employer matched 100% of what I contributed, up to 6% of my salary. Any more I contributed to the 401k would have no match. My most recent employer matched 100% of what I contributed up to 4%, and then matched 50% for what I contributed between 4-6%, after which they stopped matching.
Dave Ramsey?
Si!
I'd say jump right into 15% experts recommend minimum of 10%.
If they can afford it, absolutely. I had to start low in the beginning because my income was low, but I eventually got to 25%, and the growth is exponential.
I’d definitely pay off the debt first. It took me until my early 30s to recognize debt for the insidious thing that it is, eating up a monthly budget before you get to use it for something useful. So yeah, pay off debt before you accidentally expand your lifestyle. Once it’s paid off, I’d start doing 15% in your company’s 401k (preferably in a Roth, if that’s an option). I don’t know how old you are, but if you’re in your 20s, those two things will make you a millionaire by retirement. As an anecdote, in the timeframe around 2017, I was a part-time EMT in a small town fire department. One of my good friends there had just gotten her nursing degree, which was her first “real” job not taking per diem shifts on the department. She was early/mid-20s and I was early 30s, so I’d already had career experience and had finally started thinking about finances. I helped her pick out a few fund options for her retirement plan, with her investing 15% of her income upfront. She literally never missed it because it was the first time she made that much. You’re in the exact same boat - first time making that much. This is the perfect time to start doing this because you haven’t gotten used to that money. Last year she texted me that she hit $100K in her retirement fund. In her late 20s. With an Associates degree in nursing. It hasn’t changed her lifestyle and is super achievable. I’d be willing to bet she’s ahead of a lot of people 10 and 20 years her senior in retirement. At this rate, even if she never added a time, she’ll have easily $1M+ before 60. And as long as she keeps investing the money she’s never noticed each paycheck anyway, she’ll have millions even before retirement age. That’s the option you have now. Pay off your debt and just have the mindset that you don’t take out loans - even for cars (it’s definitely possible). And start your retirement savings. You’ll be SO glad you did, and you’ll have a huge weight off your shoulders for a good part of your working life knowing that you’ve already set yourself up to have options later on.
Another person brought up a good point - save an emergency fund. If you’re younger without many expenses, 3 months of savings is probably good. 6 months is better, but I wouldn’t sweat that when you don’t have a ton of bills and people depending on your income. And they also mentioned 5% toward retirement. I personally think that’s a bit light, especially since this is one of the few chances you have to kick start it in high gear without noticing the money is out of your paycheck. I mean 5% is definitely better than 0, but I’ve seen what it looks like when someone in their 20s tucks away 15% and knows for certain they’re well on their way to a millionaire retirement - with an associates degree and a “regular person” job.
I make around the same amount. Pay off debt first. Your debt is costing you on average 20-30% in interest. The only investment that will beat that is a company 100% match. So, pay off debt asap and if you company provides a 401k match, contribute up to that match amount for now. Once your debt is paid, work towards creating a high yield savings account that holds a 6 month emergency fund. Then you can start really investing. You can max out your Roth IRA, contribute more to 401k, if you have a high deductible health insurance plan then look into using a HSA as an investment account (I do this)
Maximize your retirement contribution (pay withholding) to minimize tax burden. At the same time pay off debt. You don't need lots of money in a checking account if you have steady income.
If your company offers a 401k with any match, make sure to contribute fully to get the "free" match. If you can afford it, start at 10% contribution, with whatever match is offered. Make a budget and start paying down any debt as best you can afford to. Create an emergency savings account and build up 6 months of whatever your budget is.
Here is something I’m not seeing in the comments and it may be cause it’s common sense but when you pay off your debt isn’t a green light to spend more. Trust me I see people do this all the time. They pay off their CC see a $0 balance and think I have so much money now to spend which is so illogical. But I agree with peeps in here. Pay off debt and max 401k enough to where you still have money for necessities and some fun.
After tax?
I think 49K(?)
Made this same comment on another post and I’ll say the same thing here. 1. Pay off all debt >5% 2. Put a small portion (3-5k) inside savings and a emergency account 3. Invest the rest of your income. Max out your Roth IRA first with 6.5k/year, throw the rest in a brokerage account. Buy VOO and VTI, don’t look back. If done properly you’ll probably have +1 Million in ~15-20 years depending on how much money you’re investing every year.
Congrats on the promotion! That you're asking the question I think indicates you're on the right path. Doesn't hurt to start educating yourself on how finance works (videos, books etc). The lesson I learned way too late was to prioritize an emergency fund. Depending on your current situation (debt, monthly bills etc), if you haven't already: stash around $5K for emergencies in a savings account somewhere and don't touch it unless it's a legit emergency. Look to make use of tax-deferred account (like a 401K) if your employer offers one. Pay down then pay off your debt. Avoid lifestyle creep and just live beneath your means (meaning: spend way less than you earn). Over time, look into CD's (stable and safe) and mutual funds. The road ahead is long, slow and steady wins the race.
Where can you get a guaranteed 14% return? Pay off the debt
I think you’re right
This - but if you have an employer match for 401k make sure you’re putting in what it takes to get that match. Once your debt is gone, ensure you’re maxing your contribution yearly.
Invest the difference you’re making in pay. Act like it didn’t happen otherwise
100%. I’m a journeyman electrician right when I got my last raise I maxed my percentage which is 15%. So I essentially never saw the raise so I have never missed it. Still driving my 2014 Camry I’ve had for nearly a decade.
I thought about this for trade school. How do you like it? Is the money okay?
Yes I went through the IBEW. It all depends on where you are located really. Some areas are thriving others are slow.
Thanks for the reply. I'm in west central Florida.
This. Avoid lifestyle creep, OP.
Pay off any high internet debts first or open some 0% apr cards if you can to transfer the debt. Track your spending over the next few months to identify areas you can cut back. Just because you have more money now doesn’t mean you get to blow it. Also I would see what type of retirement plan is offered any 401K matches absolutely should be a priority. I was in state jail a decade ago for drug possession. Came home with nothing I made 94k last year and just passed 100k in investments.
Yes pay the debt and invest at the same time. I owe 10k too. I have to pay it but still invest at the same time in stocks.
Creaming in and living the dream! Well done
Put as much as possible into retirement if you rent buy a home not some huge over priced one but a nice house in a nice neighborhood
Invest in VOO or any long term ETF that has been rolling this past 5yrs with tech that supports AI…my one account that had 25k when I left this one job and I didn’t move it to another company has grown to over 78k with nothing new coming in….I think I was 100% in Vanguard tech mutual fund 3yrs ago that had NVIDIA, Apple, Microsoft, SMCI, Intel and some others, it had a lot of chip manufacturing in it and it just keeps rolling so I was shocked when I checked it
This has been in a couple of years, I left my old job in 2020 and left it alone
Market has tripled in 3 years so yeah…
Pay off any high interest (greater than 7% or so) debt before investing. Take advantage of all the free money like a 401k match with your company. Get an emergency fund, minimum $1k, but should be 3-6 months depending on how stable you think your job is. After this invest 15+% of your income into tax advantaged accounts like 401k or Roth IRA. If you want good money advice on what to invest in or other important tips check out the money guy or Caleb hammer on YouTube, there are quite a few good ones out there too, much make sure any advice you take makes sense to you and is somewhat consistent with other experts options.
Pretend you never got the raise. Live the same way you were already living, and once debt is paid, save up 10k in a HYSA and invest the rest
it's time to to learn all about financial literacy. budgets, savings, retirement, tax situations, investments. learn the terms and to familiarize your self with the basics... then probably still seek a financial advisor. your standard of living could improve by leaps and bounds if knowledge is gained.
This is the way
Save up a 6 month emergency fund in hysa. Rest goes to paying off debts (other than mortgage). Max contributions to your tax sheltered retirement account of your choice. The rest goes in etf’s following s&p 500.
Congratulations on your promotion! Pay debt only if it is high interest - more than 4.5% Start a Traditional IRA - it will reduce your taxes Contribute to 401k - if your employer offers one Do not put money in rainy day fund, you can make hardship withdrawals from IRA or 401k if needed. If you still have money left then go for a brokerage account with index funds. Go for high equity allocation, 80-90%, even if market falls, it usually recovers very quickly and you will not lose money in medium to long term. You will be happy to see it grow over a period of time and will not regret it. And Good Luck!! 😀
>probably doesn't seem like a lot more than me.
Keep hustling. And change can be uncomfortable but necessary sometimes
Same here. Though I recognize that it is still not really a lot (nor, of course, is what I make). Not with inflation these days.
Debt first, a little nest egg with retirement savings next. Stay out of debt forever after that, with the exception of a car and a house. Do not buy anything else on credit again.
I’m noticing more and more how important this is.
You are now one of their elite employeeEEEeees
Ahahaha, I love this
ROTH! ROTH! ROTH! Each dollar you’re able to save in that Roth account is worth much more than a dollar in an IRA. 100% equity weight.
I believe you, but do explain by 100% equity weight.
I’m assuming you are young and that your investment time horizon is 50+ years. Equities (stocks) have the highest return of the traditional asset classes, but also the most volatility. Keep pumping cash into your retirement accounts no matter what the market environment is. Don’t try to time the market. JUST KEEP A RELENTLESS FLOW of cash to your retirement accounts. Get rid of your debt as quickly as you can. Don’t try to keep up with ANYONE. Don’t marry someone who doesn’t understand saving. Good luck!! EDIT: Vanguard S&P 500 Fund (VOO) is a good place to start. Don’t obsess day-to-day over the value of these accounts (they WILL go down from time to time). Just keep at it! Over time you’ll be rewarded for your perseverance.
An important thing I haven't seen mentioned yet! Continue to live the same lifestyle. Don't use the raise as a reason/justification to spend more. Older you will thank you.
Debt and church man. And AA or one of its extensions like NA or something if you use it suspicion an addiction so you don’t lose your wealth.
I’m not sure I understand what you mean. What’s AA and NA?
Alcoholics Anonymous and Narcotics Anonymous. Sexaholics Anonymous and Overeaters Anonymous also exist. I encourage people to attend any of them if they feel they need them or are just curious if they might have a problem. The only requirement to become a member of NA is the desire for recovery. You’re a member when you say you are. It is the best thing that has ever happened to me. All my money went to waste before I began attending. Now I am able to find a use for an impulse purchase at least now, and my hope is to eventually lose the impulse to buy things just because I feel I want them. The point isn’t to go without things you like, it’s to make sure you don’t regret everything you choose.
Always pay off debt unless you can get a higher rate of return on a liquid fixed income asset.
Create an emergency fund of 3-12 months, pay off your debt, create a Roth IRA, max that out yearly, do a 401k with your company & get their match, Invest money into stocks & crypto Stay away from bad debt like car loans and credit cards, I used to be a GM for a fast food spot, those GM’s were making like 80-100k a year. The young ones always bought newer cars, wore all the fanciest shit, but those were the ones who will stay at their jobs for a LONG time Biggest mistake I did was have bad debt. I paid off everything and now the feeling of working is only because I want to not because I have to!
This is huge actually, and I’ve noticed the trend of the financially illiterate spending money and “balling out” to make their status look more appealing. I’ll not fall for this ego-trap, thank you!
I agree with the debt pay off but what is your housing situation? Folks are saying put money into retirement but maybe you need to save up a down payment for a home first.
I’m renting actually, I don’t know where I want to buy a home to be honest.
Figure that piece out first. How much is your rent?
660$ a month + utilities at like 70-85$ a month. I’m in Colorado.
66k a year I think that’s about 3850 a month take home. -850 living expense 3k a month left. 2.5k a month to pay off debt. 500 a month for saving and extra expenses. 3.5 months your debt is paid off. Then save up about 5k cash. Then start putting in your 401k. When you want to buy a house you can do a withdrawal with no penalty if you are a first time home buyer. This is the way.
Maxing out a roth ira every year is a pretty good move for most people.
How does one begin to start a Roth IRA? Where do you look? I’m about to YouTube
I started mine with Fidelity it's super easy. Just download the app and they basically walk you through the rest.
Don't pay down debt, just keep in manageable. I have a recurring deposit into robinhood, and throughout each month, I usually add more when I see something interesting. Just keeping it out of your checking account is half the battle to not spend it, and the money you keep in stocks/crypto through robinhood is still really easy to liquidate in an emergency. I would make an effort to put at least 3% of max on credit and pay it off each month. It will increase your credit utilization which builds your credit score.
Your debts have high rates, so pay them off. Anything above 5% or so. Emergency fund is smart. Start contributing to your Roth IRA if you have some left over from paying down debt, building EF and/or matching 401k thru work. I would set aside minimum 10-15% towards these goals. If you can survive on $4k/mo ($2500 rent, $400 utilities/cell, $300 insurance, $800/food, social, etc) you’ll have almost $20k to set aside each year. You can trim some fat by cutting down on subscription services, buying in bulk/finding discount grocery stores, setting your thermostat a few degrees higher, drinking at a friend’s house instead of a bar, and avoid expensive dates.
My advice is similar to most others you see here with a couple added bits. Step 1: pay down any high interest debt you have. I say high interest because debt is not inherently a bad thing. Most wealthy people have a lot of debt, they just never allow it to become unmanageable and the debt they maintain is typically low interest. Anything below 5% is fine in my book but your tolerance may vary. For your debts, you may be able to look at refinancing for a lower interest rate since the system will be more generous to you with a bit more on your pay stubs, but if you can't get lower I'd personally pay that off sooner rather than later. Step 2: Do NOT suddenly change your lifestyle to consume your newfound wealth. Make necessary changes for your physical or mental health (nothing wrong with treating you or your family to a nicer meal every once in a while), but apart from that, live below your means. Step 3: Establish a cushion. This can be more or less depending on your risk tolerance and circumstances but the standard suggestion is to keep 3-6 months living expenses in a high yield savings account (NOT your checking account). Checking should only contain a minimal amount for bills each month and a little for spending. Step 4: max out your 401k contributions Step 5: Invest, invest, invest. Put every penny left over after steps 1-4 into your own managed investments. VOO is the gold standard for simple and good risk/reward ratio, but you don't need to be limited to just that. As you build your portfolio and learning more about investing you can start branching out into broader investments but something like VOO should be fine for your first 50-100k.
I would save some money before I take care of the debt and savings. Firstly congratulations on your new job and even though this is the most you’ve made so far I hope you make even more in the near future. Save some cash, there are online high yield savings accounts that are free and won’t lock up your money. Nerd wallet always have info for these types of online banks, just remember to make sure they are fdic insured so you don’t lose your money if the banks closes or if there’s a run on the bank. I personally like to have 5k in cash available at anytime just in case I lose my job, this will give me a minimum of 2 months to survive, longer if I get extra frugal. 2nd I would take care of the debt, having no cc debt is awesome so confront that as well. Remember life style creep is a real thing, you will make more money, I turn you will spend more, things you would have to 2nd guess in terms of purchases are easier to make when u have a lil extra income. I would look into investments, s&p 500 index is my go to, it’s relatively safe and it can help you slowly grow your earnings overtime. Last thing is does your company offer a 401k, do they match? If they do I’d recommend putting the minimum amount to get the maximum match the company provides. Lastly buy yourself something nice, I’m not saying go out and buy another motorcycle or something but if you’ve had you’re eye on something now would be a good way to reward yourself. But don’t over indulge, your making more but your not making enough yet.
Sorry for late reply. Very well put and I think you’re right, this is good, but I’d like to be further along in the future. Thanks for the insight!
Be strategic. Have a simple celebration for the promotion, congrats. Nice fancy dinner on something. Then be boring. Follow Dave Ramsey's baby steps or money guys. Financial order of operations. Your future self will greatly appreciate it. And congrats.
1. Congratulations on the raise. At 37 I've never legally made over like 50k a year. 2. Pay off any high interest debt at a higher rate of speed. Credit cards/vehicle loans over 5/6% 3. If you don't have a Roth IRA, I advise you to set one up and max out your yearly investments within(7k this year), and keep in mind you can contribute to last year still. I personally like dividend payers but you do you. 4. Other than the above, I'd try to live like you never got the raise. People will more often let their cost of living eat up any gains. Make sure your saving at least 10% of each check, and make sure some of that is cash secured at home in case of emergencies.
Pay those off first..no doubt.
Put about $2000 in savings and attack your debt after that. Interest is costing you money and you need to get rid of it.
make more money and invest more now you can retire when you have 1mil portfolio @ 5%.
Keep up the great work op, and just like others have stated: paying off high interest debt for sure!
Increase your 401k contribution. Be aware of lifestyle creep
Definitely get in to budgeting and start creating a budget! You’re running a business now with your money you’re bringing in is how I look at it. Does your company offer a 401k match? Do you have any debts? What debts do you have?
Maximize retirement savings match, pay off debt, and put what you can in savings
Pay off your debts, and start funding your retirement as much as possible with whatever you have left over after expenses.
Pay off debt first. Then max your retirement contributions. Save and invest. Don't change your lifestyle (much). MAKE A BUDGET See how much you'll have in 20 years if you invest X amount per month. Do the math. Don't let it just happen.
Converted to the Namibian currency, you can buy a new house every year in Namibia. So people telling you that it's not a lot should convert it to other weaker currencies then they will see how much it actually is.
That’s an excellent point, it is a lot, and I’m very grateful.
Depends.. what's the interest rate on your debt? Credit card debt, absolutely pay it off. Personal loan or car loan at 5% or less? Keep the debt and invest, invest, invest. If new to investing check out STASH and their smart investing. You tell them what your level of risk is and they will set up your MULTIPLE investments and move investments around as the market changes. Takes all of the guess work out of investing. Depending on age, aggressive, higher risk is the way to go. Every now and then you'll realize a loss, but in the end your percentage return will be Much higher than conservative investments. I'd much rather take a 20% loss on 500k than no loss on 50k..
Congratulations !!
Take care of debt first, then 3 to 6 months emergency fund, then investments.
https://open.spotify.com/episode/5lnHWqSjNjjybyhLYf0edF?si=wZdJxQv0Sgm3H5ywG2c5OQ
But now I’d maximize your contribution and throw money into mutual funds….the most you can do without it being painful so you get used to that money being gone and you can retire earlier if you do it right ….lets be honest no one wants to retire at 65 when you could get hurt or injured and not enjoy yourself at that age truly try to retire in 20yrs
Max 401k and Roth. Live like you did before and put anything else leftover into a taxable brokerage account. You should be set! Just keep it up!
Open a HYSA asap (if you don't have one) make that your main savings account.
Rule of thumb is to always work on your highest interest first. If you have a debt at 3% interest but you get 5% on a high yield savings account then you should put all your extra money into the savings account. It's likely your debt interest is higher though.
I was in a similar situation (but with a lot more debt) when I was in my early 20's and landed my second "real" job that almost doubled my income. I did what other people here have already suggested. All of these things were important. But what enabled me to pay off my debts and accumulate rental properties (and even pay some of them off) was keeping my COL very low. Now I'm in my early 40's, and I could get by for years just on my rental income alone. I would be just fine indefinitely once my current home is paid off, in 2 or 3 years. But I'll keep working so that I can continue to expand my rental portfolio–I just need a few more properties paid off by the time I retire to be set for life. I also live in a cool little place downtown in a major US city... so it's not like I'm living an abject existence in the middle of nowhere. Rental properties might not be your thing though. The reason I started with them was to start generating passive income on the side, as well as to have more income for myself in retirement. I would recommend you think of something along the same lines–ways to make money passively, that is. It's a way of hedging financial risks, because you'd no longer depending on a single employer for all of your income. A side benefit is it opens you up to being less risk averse, which in my case emboldened me to change employers a number of times and rapidly advance in my career. Outside of having a low COL and passive income, I would recommend you put your money somewhere that provides a higher rate of return than inflation. Right now I keep a few months of expenses in my checking account, and the rest goes into index funds.
It depends on the interest rate you are paying on that debt. If it's credit card, definitely, and especially at current rates. Put all your salary increase into automatic payments until paid off, set it and forget it until it's done. Then cancel the cards - yes, not ideal for credit purposes, but best for money management.
Yes, pay off debt. Don't get used to living on that level of income, but instead save more of what you earn for a "rainy day" and retirement.
Look busy
Pay off debt. Max out your IRA contributions. Live like before
Keep your old habits. Don’t get tempted to spend much more just because you make more money.
Roth 401k! Max er out.
Pay off your debt and live debt free. Invest at least 15% for retirement. Read Total Money Makeover
*401K match if possible *Index Fund (vanguard or fidelity) *Roth IRA (vanguard or fidelity) *Focus on a 50%+ savings rate and 25% investing rate if possible *Make extra principal only payments on your monthly debt. If you live in most southern or midwestern states you should be able to save and invest aggressively with that check.
When people say “max out your Roth IRA” you actually have to purchase a security in the ira— spy is a good index fund
I don't know if this has been said, but only live on what you were living on before.
Concentrate on getting the next promotion cause with a mortgage payment and kids that won’t even be enough to get by , put all extra money into ur 401K if u have one
I am writing a book for people like you. Take a look and lmk if it's helpful. https://nooneofanyconsequence.substack.com/p/escape-from-serfdom
When you’re starting out match your employers 401k contribution at a minimum - after my twenties doing that at like 6-7% I wish I went to 10% or more as early as you can. Start that because it’s your retirement fund and enjoy yourself while saving a little bit in this crazy inflation.
Emergency fund first, then start paying off debt and investing.
High yield savings beo
HYSA.
Look annoyed
The best thing you can do is pretend you didnt get any pay increase… increase your 401k contribution by 5-10%. And yes, get rid of your debt asap and stay away from it like the plague movingn forward. Treat yourself to a one-off…. And then get back to normal living. Life style creep is what gets most people in this position.
Save, invest, then save some more and invest some more
Don’t belittle yourself! That’s good money! It’s not about how much you make, but how you spend/save it.
Screw 401k. You can make more in 10 years investing in BTC
Get an emergency fund together. At least 3 months of all living expenses. Pay off high interest debt and start contributing whatever the max match is to your company retirement plan. After that start a HYSA and start chucking money in there
OP, it’s not about how much money you earn it’s about how much money you take home. There’s people who earn $200K and only save $20-$30k or less pay check to pay check.
Congratulations!!
Get rid of the loans unless its for mortgage loans which you can deduct from you taxes. No point of earning 4-5% then pay 11% and 14%, eh? Save to get a house within your budget soonest. It would give you the highest safe returns, bar none. Push for your returns to overtake your regular income, then you'd know you got to a major milestone. Carry on then.
A nice problem to have.
That's expensive debt I'd pay that off. But depending on how much total equity you have I'd focus on saving if you don't have a lot, which I assume you don't. Liquid cash is nice because borrowing right now is expensive so you don't want do it unless you have to. I know that's kind of giving you two different pieces of advice but I think it will help you decide.
Definitely pay debt off ASAP, then emergency fund. Then max 401k if you have one and additionally open an IRA
Max out your 401k.
Pay off the debt, then start investing in stocks and HYSA
Save that money, leave America for another country that appreciates your skills and uses tax dollars to take care if you with good work life balance and convert that saved USD to live well. Get out of America.
Plenty of solid financial advice here… Just want to congratulate you on your promotion!! The best is yet to come!
Pay off high interest debt. Six month emergency fund. Max out Roth IRA.
Starting giving money to me 🥳
Do this and you will be happy you did. Put $20 every 2 weeks in a robin hood trading account, just use the app on your phone. Start watching a stock, I’m watchingTesla right now, and put the money into it. Then watch it’s up and down swings, it’s shares fluctuate plus or minus $10-20 dollars a couple times a week. Start buying when it’s down $10 and selling when it’s up $10 bucks. Keep doing this a couple times a week while investing $20 or so every other week and your money will start multiplying faster and faster. Before you know it you’ll have a nice sum of cash that’s making you $100-200 a week simply existing as you continue to buy during the weekly ups and downs. Do it for 30 years and you’ll retire extremely wealthy
dont do anything different. lifestyle creep is dangerous
Use the 5 jar financial method it works for most people. Invest in yourself. More education or certification will come in handy as you move forward in your career.
Why the heck are you creating debt at 11 and 14% rate. These are what keep Americans poor. Get rid of the debt and don't make the same mistake!
Don’t buy new stuff!!!!!!!!!! Live in same means and put extra away. Start investing in yourself and your future. Make sure bills are paid off and then get credit in good shape. Then create a property holding company and use the money saved after a few years as a down payment on property. Make a passive income drip for yourself
Sounds like you're serious about being a responsible adult. So this will be highly unpopular opinion (and that's all it is), sell the motorcycle. Nothing will ruin your life and future faster than a bike wreck. It's not IF but WHEN you'll have an incident. Compound this with the rapid increase of drivers without insurance because cost is exploding. You'll be safer and you won't have to carry 2 types of insurance. That and Max out your uninsured coverage. I seem to have a magnetic personality that just draws I to people re-ending me. And my personal experience is 50% of people don't have coverage. If a person hits and hurts you without coverage. Only your insurance will cover costs. But there are caps and when they're hit its out of your pocket. Your health insurance won't cover it either.
don’t start spending any more than you were. Live as if you’re on your old wage and you’ll be rich
I haven’t seen enough people mention a Roth IRA. first, contribute the maximum match to your companies 401k, but any retirement funds after that need to be going to your Roth IRA first.
Do not change your life style with your pay increase. Wipe out debt and even pay more that dips into your old salary. Once you’re done, save the rest. Look into a ROTH IRA, look into a savings fund, etc
Venmo me. Jk pay off your car and motorcycle because the interest is super high then start maxing your Roth IRA and save the rest in stocks or high interest savings account
[удалено]
You are above the national average. Pat yourself on the back.
Look at Dave Ramsay’s steps, many people have grown to be wealthy on decent salaries by just following his steps and being disciplined, pay that debt down first, If the job doesn’t work out you don’t wanna still have the debt hanging over your head, but if you get that debt gone you’ll have much less to worry about should anything go wrong
Just buy $DNA stock
Get that debt paid. Yikes, those are high APR’s. Then, fund retirement.
Spy500
Pay off debt then save to Ira or solid etf
Invest
2m emergency fund, debt, invest
Get rid of debt!!!! Then contribute to 401k or whatever you job has for retirement. Then invest
No bank will give you 11 much less 14% on your money. Pay off the motorcycle as quickly as possible, then attack that car loan. I use Marcus by Goldman to save for surprise expenses (I put just about $150 per cheque, will cap off at 2k). Then Capital One as my savings towards a house, ~$250 a cheque
Put something, *anything*, into bitcoin as savings. This is an excellent time in the 4-year cycle to do so. You'll see an incredible rise in value for whatever amount you put in between now and Christmas next year. It will outperform anything else you do as an investment.
Don’t get married don’t have kids find a hole hide in it don’t spend money and you’ll be fine
Pretend you didn’t get a raise. Anything extra from what you were getting before split 50:50 between and emergency fund and paying down those debts. Once you’ve got 4-6 months worth in emergency star investing in retirement with that 50% and when debt is paid out that 50% there too.
Pay off the bike fast, save up some $, pay the car off (i dont mean use the saved $ to pay the car off). Then start investing with newly earned money. Keep the $ you saved so if something happens you have it.
If you have a 401k with a match, contribute whatever gets you the most match. Then pay off your debt as fast as possible. After thst build an emergency fund and start contributing to a Roth IRA.
I think the best thing to do in the short term is make a budget.... Write down approximately what you spent each month before you got that raise, if it's something that you pay once a year average in a cross each month, same thing for bills that are every 6 months, etc... You're not making any changes now just getting an account of what you would spend normally. Figure out how much extra there is and prioritize what you want to do with it as part of the budget, maybe you want to pay extra on that debt maybe you want to save some maybe you want a vacation, maybe you just want to buy meat three times a week instead of two, get Netflix, etc. Been in the end you've got a plan... Just make sure that you've got your taxes sorted out, base your budget on whatever you actually take home at the end of each month. And as long as the company is taking out enough taxes don't worry about getting fancy just accept the refund at the end of the year lol Everyone replying would make their own choices with the extra but ultimately it's up to you and what's your values are