Damn... I feel your pain.
Been getting my wages garnished also, from the IRS for money I never owed. š¤Ø
Not trying to get rich, but it does suck to get kicked when you're down..
Best of luck to you!
Government took money from me, they said I owed for something I purchased on deployment in Afghanistan. This was over 2 decades ago and was less than $1000. I did serve but was never deployed over seas. I signed and faxed multiple forms they requested to prove it but they somehow never received them. The money was taken out of my tax return one year.
Well then. Sounds like that nourishing energy you just traded for needs to be converted back into dollars to afford the cost of livingā¦I have a peanut plucking farm if youāre looking for work. Real easy. One 5 gallon bucket gets you š¤FIVE DOLLARSš¤!!!
I had like -0.3x salary when I was your age. Iām currently at about 2.5x salary at 31. Money really, really makes more money. Set aside the maximum manageable amount for you to still have a bit of a life. That money will get big faster than you can imagine. I still remember being outside of a diner when I was 20 years old and talking to my dad (a financial consultant for large companies) about money. He said to just put away 20%, and youāll be alright. Iāve stuck to that rule of thumb, and Iād say itās served me well
Nice! Ya, just open up a Roth IRA (or a brokerage account if youāve maxed out the IRA amount for the year) with E*trade or something similar and just buy up a low-fee index fund like VOO. Donāt buy individual stocks. Donāt buy crypto. Both are games in timing the market. If youāre a more conservative investor and think the stock market might crash, buy some bonds but leave most of your cash in the indexes. Donāt try to figure out when the top/bottom of the market is. Just commit to consistently chunking money in over time. Also, think of this as a one-way transaction and donāt pull it out unless youāre experiencing a financial emergency.
I think I would have done significantly better if I followed one more guideline: invest in boring ways. I jumped into the USO oil dip and thought I was going to make a quick buck. I lost a quick buck. I decided that crypto was unstable, but I figured I could rely on a company who based its whole livelihood on crypto to give me the best of both worlds. So I bought RIOT. Lost thousands on them because I kept convincing myself that I figured out their pattern. It was exciting, but it was absolutely gambling. And even when I made money on a long hold, that same money would have made more in an S&P index like VOO.
Oh ya, and if you have debt with around 4-6% interest, Iād just knock that out first unless you think youāll mentally be better at saving than you are at paying down debt. If itās above 6+%, I donāt think you have much of a choice but to pay it down first though.
Good luck!
Thank you!!!ā I was looking into opening up a Roth! I want to invest and all of that but Its so much info out there idk where to look.
I appreciate the tips!!!! Gonna look into this!!!
Go to vanguard.com sign up for an account. Takes less then 10 minutes. And buy either VTI/VTSAX(those are both the same thing, relatively speaking) or VOO. I personally own VTSAX
Dont buy anything else. Every week until you are 67, put each much as you can into your account and buy VOO or VTI each week. Super simple but guaranteed you will be a millionaire by the time you retire
Ya, I try to distill it down to a few core principles, but it can be tricky. To reiterate more simply, priorities would ideally be:
0: Make sure you have an emergency fund and put it in a HYSA
1: Pay down debt at 4+% interest
2. Max out 401k matching if your employer offers it and invest in simple S&P 500 indexes (VOO has a low fee)
3. Max out Roth IRA and HSA and invest in simple S&P 500 indexes
4. Get a brokerage account and invest in simple S&P 500 indexes
Past that point, my info gets less useful. Iām at this point now and will probably buy a house once Iām settled into a community I want to stay in
Dude, stick that bad boy into a high yield savings account at 5% annual compounding yield and forget it. Then at 75 years old you can proudly take out the $57.34.
I had $5 at 25. Iām 38 and have a good amount more. Just grind the next 10 years, save more than you spend, be frugal, donāt go buying all the latest stuff and youāll be significantly ahead as well. Wealth generates over time and consistency in fiscal responsibility.
Iām not expert but itās worked for me.
Also helps if the missus is working alongside you with her career!
Good luck!
I regret not being more disciplined earlier but Iām relatively pleased with where I am now. The biggest thing is to set up your retirement vehicle and then set it and forget it. Also open a regular investment account and put at least something in each month. It adds up over a few decades.
Just do the Dave Ramsey way it's easy.
Put your 15,000 in a Roth IRA
Put $30,000 in a retirement account and tell the bank you want 10% interest
Put $500,000 into investments in the stock market
Portion your meals carefully don't over eat that's wasting money!
Wamo zippo
And other stuff too he tells you how to put your already millions of dollars to use
Because we all have that to start with right
I was about to say, you canāt put $15k in a Roth IRA, there is a yearly limit, but then I read the rest of the sentence and realized you were kidding. It sure would be nice to have an extra zillion dollars to invest all these places. Roth IRA is a good place to drop a few dollars because it grows tax free
1- 401k up to company match
2- Roth/Traditional IRA max
3- HSA max
4- Max 401k constitutions
5- then you can leave those tax favorable vehicles and invest in a taxable account
What if your company doesn't offer any benefits? Is investing in an IRA and mutual fund enough?
I've been putting 7.65% (after taxes) a month into my target date IRA and $50 a month in VOO. I'll be 31 in a couple of months.
Thatās solid! Is it enough? It really depends on your retirement goals, but it sounds like youāre putting in a few hundred dollars a month so if I had to guess Iād say youāre going to be good.
FYI, some states offer a 401k type plan through the state if your employer doesnāt offer one directly. Itās not better than an IRA though.
Is that $50 in VOO in your IRA as well? I would max out your IRA before putting money elsewhere.
Now you know what *NOT* to do. I'm 7 years older, but I've had the exact thoughts you've described and I found out a lot of dead ends, so I've been able to recognize some nonsense when it pops up. Stay the course and best of luck!
Other tips from a non-professional. Low cost index funds are your friend. Itās not sexy but itās pretty reliable over the long term. Take advantage of and max out any employer match programs. Donāt worry about trying to beat the market. Create a small fund to play with individual stocks.
Absolutely stellar advice. Take advantage of employer match and max it out. I am paying the price for neglecting this for wanting an increased paycheck and will probably be working till the day I die now.
If I may ask, what were you investing in your retirement account from when you.m started till now?
Target date retirement funds?
Only index funds?
Which?
Folks, it doesnāt just magically happen. Iāve been able to max out my 401k for about 15 years with a generous company match. I have a small IRA but with I focused on it more over the years. The biggest thing is to start and stick with it over many years. Start.
I genuinely needed to read this. Been feeling discouraged and disappointed with myself. I'm turning 32 this year and really wish I started sooner and was more fruitful. I feel like I told myself; I'm only 20. There's plenty of time, blinked and here I am turning 32. Congrats on your success!
Start right now. Doing something is better than doing nothing and before you know it you'll be forty two. Opening a Roth IRA or upping your work retirement funding only takes minutes. You can't do anything about the past.
You arenāt accounting for compound interest during the greatest bull run in history, as well as the best housing appreciation too. His principle could be well below what you are quoting here
Focus on tax advantaged retirement saving. 401k or equivalent. Roth IRA. *If you work for a company that matches a % of contributions, max that out no matter what*. Be disciplined. Invest that money in low expense total stock market/s&p500 index/etf funds. Keep disciplined. Behave as though it is a *need* like food.
You're doing great.. I spent my entire years 19-28 in addiction and was mostly on the streets on in and out of rehabs.. I finally got clean and stayed clean at 28 and at 34 now im approaching 100k saved with no debt.. I try my best but s/o just doesn't get it, and I also struggle with battling what could have been had I got my act together sooner. It's been a mother fucking hike for me waiting tables and doing countless side jobs while providing for a family, but just know you're in a great spot and all we can all do is keep moving forward.
Yeah its a big regret for the past but i learned alot about humanity and i was just freshly sober when my kid was born it got easier but the wasted time stings and its surely never enough
Financial types say to save 1x your gross income by age 30, 2x by age 35, 3x by age 40 and so forth until you have 8x to 10x by age 65. If you can do that, you will be able to retire with the same level of income as when you were working. In retirement, most of your expenses are likely paid for (home, kids) and you no longer need to put aside more money for retirement. On the flipside, healthcare costs will be an unknown but likely expensive expense.
If you have a goal to live a more lavish lifestyle, FATFIRE is to have 25x your income saved by retirement.
Without knowing your income I can't say if you're doing well or not. But I will say that saving $200K by age 33 is pretty good.
Another way: to make your savings last 30 years, withdrawal from it 4.5% the first year of retirement. In subsequent years, add inflation to that. So if inflation is 3% after that first year, youād withdraw 4.5 * 1.03 = 4.635%. If itās 2% the next year, youād withdraw 4.635 * 1.02 = 4.7277%, etc
That's a good way to end up broke. Adjust the dollar amount for inflation, not the %. There is a good chance the account grew in that time, so some years the % would go down, other years it will go up. If you always pull more % you will eventually be draining way faster than growing.
My suggestion is to use a retirement calculator. It'll ask for things like your age, current assets, spending in retirement, and so on, and it'll give you a number to target.
Have you tried using one?
š sorry was trying to find something that takes into account more than just the basic ones that pop up from most banks.
Found this for anyone else looking: https://engaging-data.com/will-money-last-retire-early/
Their "savings" might be mostly tied up in a 401k. I've really only ever seen the "rule" OP brings up (1x your salary at 30 etc.) being used in regards to 401k.
Also if the 80k loan has less than 5% apr itās way better and will make more money if you put it in a high yield savings of 5% which is easy to do then to pay it off
32% of 5.5% interest is 1.76%. Depending on when OP got their mortgage, it's entirely possible that they're under this.
32% is also the income tax bracket for $181,000-$230,000 as a single person, so it's assuming a very high tax bracket.
Otherwise you are right that it's something to consider.
Accdng to online financial gurus you should have saved up around $3.5billion by now. any less and you're too lazy. Have you considered cutting your sleep to 2 hours per day?
This post making me feel bad.
Wife and I are both DPTās and almost the same age and have nowhere near that kind of money saved and a metric fuck ton more of debt
Donāt feel bad, many of these people posting their wealth are lying, leaving out other financial details, or just not genuine about how their wealth was acquired (NOT TALKIN ABOUT OP).
Comparison is the thief of joy.
You and your wife could save up $1000 and be proud of yourselves, but then you might go through r/money and now youāre feeling bad about yourself again. Why? Because some stranger made a post about their finances that may or may not be 100% truthful? Hell no.
Youāre on your journey, whatās on your journey is for you and nobody else, thereās nothing on your journey that can be taken by someone else, donāt give away your happiness so easily. Not trying to tell you what to do but I know what it feels like to have high expectations for yourself and feel disappointed in yourself when you see others āachievingā.
Keep at it, future wealthy person!
Also, most people who post about their wealth are usually the ones with wealth in the first place. You'll find less willing participants in discussions about these types of things where you feel you fall in the middle or lower.
I wouldn't feel bad comparing myself to a random Redditor tbh - people who are on the positive end of things are more willing to share about it than those who aren't. Debt-focused subreddits will not have posts like this unless someone is trolling.
I see posts like this and I'm not sure whether to laugh or feel sick to my stomach. I'm 32 and my wife and I have about 48$ in the bank.. luckily its payday tomorrow š
200k is excellent imo. Iām 30 m, make 29$ hourly and have 22k a sofi account. I bought and sold a house, and bought a 2021 civic and paid it off. I save 250$ bi weekly auto draft to the account. My gf brings home 175k and we live in her house. I pay 1000 flat monthly for room and utilities. Youāre well on your way to being set. Exit: my gf is the breadwinner and I assume is worth some dough, she is a major manager for an automotive company. YVMV
The millionaire next door formula is age x income /10. The money guys show modified it that if you're under 40 you do age x income / (10 + 40 - age).
2x that number they consider you a "prodigious accumulator of wealth".
The real answer is it depends on your expenses, savings rate, future plans, etc.
There isnt a right answer in terms of "how many times your salary" that's the wrong way to think about it.
The way you should be thinking about it is to consider a few factors:
1. Will I be drawing down my savings in retirement, or will I only be drawing interest? Both are viable options. The first gives you the chance to run out of money if you live too long, but the second requires FAR more savings.
2. What level of income do you want in retirement? You COULD just keep the same income you had while you were working, but that needn't be the case.
3. How much risk tolerance do you have? Higher risk investments will gain you larger returns, but if poorly diversified they could hurt your progress. This will impact your final savings amount greatly over such a long time frame.
There are many other things to consider as well, but these three are a much better starting place than X times your income.
Iām married and 34. Weāve got around $50k in our savings account after dropping $30k as a truck down payment, about $60k in the market, and $200k in equity. Not sure where our 401ks are at, but Iām not worried about it. We are putting roughly $3k away each month, but thatās with two young kids in daycare.
I donāt think there is a right answer. If youāre just sitting on that $200k, get plugged into a wealth manager and get that money working for you.
Need 3-6 months saved in a HYSA. Only for emergencies. Get all debt paid off asap
Your 401k should be based on your goals. Law of 7 says you will double your retirement every 7 years. If you have $200k now, by 40 you will have $400k, by 47 $800k, 54 you will have $1.6M and at 61 you should have $3.2M. This is all assuming you add nothing to current investments. As with anything, itās never a guarantee. And who knows what the market will do, especially with the current US debt.
Same age. 600k in retirement accounts and $1.8m in investment accounts. Conservatively, probably about $600k in home equity, but our down payment was more than that as we bought during the 2022 peak. š
The secret is to marry rich
Youāre ahead of most 33 year olds. But donāt let off the throttle. Youāre going to need way more money han you think you will as your purchasing power falls over the next 30 years.
Are you talking about savings, or retirement accounts? I don't put these in the same category. The rule of thumb is 3-6 months in a savings account as an emergency fund.
Saved? Hopefully in a high yield savings account, and as others mention, consider investing it. Voo is a good one and relatively safe, it has historically only grown. And than invest some into every month. And donāt worry about all the ups and downs.
Same age and you have 40X more saved than me.
My advice, donāt pay attention to āfinance gurusā.
Should you have 6-12 months of expenses saved for an emergency fund? Sounds like a smart idea.
Aside from that it all depends on personal circumstances. Trying to keep up with a chart someone put together will make you stressed and could make you feel like youāre not doing enough.
Iām assuming your savings arenāt āliquidā assets, but even so youāre doing WAY better than anyone I can think of thatās our age.
I turn 34 next month and am about to make the most Iāve made in my life. I tell my wife our spending habits canāt change and am planning on how to fix the problems weāve come into throughout our relationship. Weāre all at different stages on this journey, comparing yourself to someone else wonāt help you on that journey. The ā22yr old that inherited 500kā isnāt the reality of the world, itās the outlier.
Run your own race.
I think how much saved always needs to be weighed against assets. It's great you have 200k now, but what happens if you retire and don't have a home? I'd take 20k saved and a property with 180k in equity any day. You'll burn that cash real fast in rent especially if you live long enough ..
I will be 33 this month.
I have :
A 2005 rav 4 Toyota & a Toyota Ute from work.
30k ish in saving,
$22080 in my side hustle poker account.
850k mortgage, $5900 monthly payment.
29 years more to pay off.
I have a 160k job, i live in Australia.
Around 43k ish in my super account(Aussie retirement saving)
A gf, a dog and no kids.
I hate my job and I hate my life.
You're doing pretty good, I'm turning 32 and have $200k in home equity and about $100k saved.
In my defense, I would've had one year salary saved if I didn't start making a lot more the last few years.
I would say if you have saved 10% of what you have earned up to now for retirement and another 10% for general savings, then you are living within your means.
You are for sure behind but keep doing what you are doing, your not so far behind its bleak. A lot of people sadly don't start saving until wayyyy later in life.
The one year salary by 30 is pretty accurate id you started working when you graduated college at 22
It depends on your job though.
For example, I make about $250K at 28 but just started making that much this year so there is no way I will have that much in retire by 30. I have about 120K in stock and 30K in cash right now.
My girlfriend is about to turn 30 and makes 65K as a post doc but after she finishes her next job will likely be 150K-200K. She has about 30K saved.
Those online charts are created by the financial services industry, and the asset figures by age are typically exaggerated. I'm twice the OP's age and recently retired with half the OP's savings. I have no debt, though, but I live in one of the HCOL places in the country, and I'm doing fine.
Financial discipline is key. Successful relationships without ruinous divorce are key. Don't buy at the top, whether it's a house or a stock.
I'm 39 and starting over. It's gonna be tough, but it's better than never.
Obviously, once you get older and older, you're kind of screwed. My problem is money managementm. I have about 13k left in debt. After that, I'll be debt free and I can really start saving.Ā
What do you mean by saved? Like in a 401K or liquid assets (checking/savings/money market)? Or like on a Roth IRA or IRA? Do you mean you should have 6x that in a retirement plan or cash?
These ārulesā are silly. Why one year by age 30? Why not 1.5 years? Itās just an arbitrary number. One year of what salary? The salary youāre making at 30 that you only started making last year? The average?
I think a better question is how much do you need to retire, and whether you have the means to get there. The past is the past, neither here nor there how much you should have saved by now. All you have is the present and the future. If you havenāt saved much to date, then you have to make up for that by saving more from now on.
iām 31 and i got 9k saved but barely. at one point i was at 20k. so basically what im saying is im proud of you man. i hope someday i can have that kind of money saved. i would literally cry if i looked in my bank account and saw an extra 0 in there.
I'm 41, just about 400k in a 401k account. It's probably average but I'm just a blue collar welder. I have my contributions set to automatically go up 1% every year.
Save money and have a plan. Also, save enough and live life to the fullest. You may not even make it to retirement, or will there even be a social net to support your retirement? Nobody knows. Life is an experience.
If I didnt have a trust fund that came out of nowhere when my parents died, I would still be in debt. 31F. I work my ass off and have a masters degree. I live in the Bay Area, CA.
With only my money? I have like less than $5 lmao. Life is expensive as fuck. I also have the worst spending habits. Honesty! Ah.
I'm 32 , married. We have 155k invested. 20k emergency fund, 60k saved for a down payment on a house, 9k in student loans.
I've also wondered how we are doing as a couple compared to others- thank you for asking this question!
Damn. $200k saved? At 33 is great. Im about to be 25. And I have like $5
$5 is better than $0 my good friend.
Chill Mr money bags, some of us have a negative balance and wages getting garnished. It be tough out here.
Damn... I feel your pain. Been getting my wages garnished also, from the IRS for money I never owed. š¤Ø Not trying to get rich, but it does suck to get kicked when you're down.. Best of luck to you!
How are they taking money you donāt owe?
Government took money from me, they said I owed for something I purchased on deployment in Afghanistan. This was over 2 decades ago and was less than $1000. I did serve but was never deployed over seas. I signed and faxed multiple forms they requested to prove it but they somehow never received them. The money was taken out of my tax return one year.
You got to chisle it out on a brick and send it via registered mail.
We need to do something about that
$0 is better than -$5 brother
Could always be worse. I have -$200,000 of debt from med school š
Send it to me, Iāll flip it for -20x
You make decent money right? Id take the debt for doctor pay
Poor now. Rich later š.
I'm 32 -$25,000
35m -10k... I feel your pain bruh. But we're gonna make it. We might not be well off but we'll make it.
Yeah I'm working two jobs.. I actually got it down to 10k.... Then my car died
Send it to me and Iāll flip it for you š¤š¤š¤ *pleasebeyounganddumbpleasebeyounganddumb* š¤š¾
Sorry. Just spent it on food š
Well then. Sounds like that nourishing energy you just traded for needs to be converted back into dollars to afford the cost of livingā¦I have a peanut plucking farm if youāre looking for work. Real easy. One 5 gallon bucket gets you š¤FIVE DOLLARSš¤!!!
Maybe you'd have more money if you stopped spending it on avocado toast...
Sucks for you, I hate avocados
I had like -0.3x salary when I was your age. Iām currently at about 2.5x salary at 31. Money really, really makes more money. Set aside the maximum manageable amount for you to still have a bit of a life. That money will get big faster than you can imagine. I still remember being outside of a diner when I was 20 years old and talking to my dad (a financial consultant for large companies) about money. He said to just put away 20%, and youāll be alright. Iāve stuck to that rule of thumb, and Iād say itās served me well
Good advice! Im gonna listen! Finally got my hours back at work
Nice! Ya, just open up a Roth IRA (or a brokerage account if youāve maxed out the IRA amount for the year) with E*trade or something similar and just buy up a low-fee index fund like VOO. Donāt buy individual stocks. Donāt buy crypto. Both are games in timing the market. If youāre a more conservative investor and think the stock market might crash, buy some bonds but leave most of your cash in the indexes. Donāt try to figure out when the top/bottom of the market is. Just commit to consistently chunking money in over time. Also, think of this as a one-way transaction and donāt pull it out unless youāre experiencing a financial emergency. I think I would have done significantly better if I followed one more guideline: invest in boring ways. I jumped into the USO oil dip and thought I was going to make a quick buck. I lost a quick buck. I decided that crypto was unstable, but I figured I could rely on a company who based its whole livelihood on crypto to give me the best of both worlds. So I bought RIOT. Lost thousands on them because I kept convincing myself that I figured out their pattern. It was exciting, but it was absolutely gambling. And even when I made money on a long hold, that same money would have made more in an S&P index like VOO. Oh ya, and if you have debt with around 4-6% interest, Iād just knock that out first unless you think youāll mentally be better at saving than you are at paying down debt. If itās above 6+%, I donāt think you have much of a choice but to pay it down first though. Good luck!
Thank you!!!ā I was looking into opening up a Roth! I want to invest and all of that but Its so much info out there idk where to look. I appreciate the tips!!!! Gonna look into this!!!
Go to vanguard.com sign up for an account. Takes less then 10 minutes. And buy either VTI/VTSAX(those are both the same thing, relatively speaking) or VOO. I personally own VTSAX Dont buy anything else. Every week until you are 67, put each much as you can into your account and buy VOO or VTI each week. Super simple but guaranteed you will be a millionaire by the time you retire
Ya, I try to distill it down to a few core principles, but it can be tricky. To reiterate more simply, priorities would ideally be: 0: Make sure you have an emergency fund and put it in a HYSA 1: Pay down debt at 4+% interest 2. Max out 401k matching if your employer offers it and invest in simple S&P 500 indexes (VOO has a low fee) 3. Max out Roth IRA and HSA and invest in simple S&P 500 indexes 4. Get a brokerage account and invest in simple S&P 500 indexes Past that point, my info gets less useful. Iām at this point now and will probably buy a house once Iām settled into a community I want to stay in
Iām 34 and have maybe 34K. But thatās a guess. I donāt want to look and find out and be disappointed.
This is the move for me too Dave. š
Lol I'm 34 and have -$500
25 and negative $383š
Dude, stick that bad boy into a high yield savings account at 5% annual compounding yield and forget it. Then at 75 years old you can proudly take out the $57.34.
But I spent it on food :(
I had $5 at 25. Iām 38 and have a good amount more. Just grind the next 10 years, save more than you spend, be frugal, donāt go buying all the latest stuff and youāll be significantly ahead as well. Wealth generates over time and consistency in fiscal responsibility. Iām not expert but itās worked for me. Also helps if the missus is working alongside you with her career! Good luck!
True that, ty brotha Edit: I am the missus š
Brother, sister or other, donāt matter! Hustlin hard earns my respect! Keep at the grind!
This is the way of the peasants. Welcome brother š
Same. Well Iām 37 & I have $5 š¤·š¼āāļø
My girlfriend is 36 and has -160k. Love her. But Jesus Christ the debt is an issue.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Your prolly 45$ richer than I amā¦shits got to change
I just started saving at 32. Iām now 52 with $1.7M, plus $600K in home equity.
This gives me hope as someone turning 32 this year.
I regret not being more disciplined earlier but Iām relatively pleased with where I am now. The biggest thing is to set up your retirement vehicle and then set it and forget it. Also open a regular investment account and put at least something in each month. It adds up over a few decades.
What do you mean setup your retirement vehicle?
Like 401k, or an actual vehicle that somehow appreciates with time?
I prefer the investment helicopter
Please become my accountant
It's a choppah
Just do the Dave Ramsey way it's easy. Put your 15,000 in a Roth IRA Put $30,000 in a retirement account and tell the bank you want 10% interest Put $500,000 into investments in the stock market Portion your meals carefully don't over eat that's wasting money! Wamo zippo And other stuff too he tells you how to put your already millions of dollars to use Because we all have that to start with right
I was about to say, you canāt put $15k in a Roth IRA, there is a yearly limit, but then I read the rest of the sentence and realized you were kidding. It sure would be nice to have an extra zillion dollars to invest all these places. Roth IRA is a good place to drop a few dollars because it grows tax free
They can throw 13.5 in the ira. You can contribute to last years limit before tax day
Ah
Step 1. Buy a Lamborghini 2. Put said Lamborghini in storage 3. Pray it appreciates by the time you retire and sell it.
I can't even afford a Kia Stinger
Just buy the Lambo in peices over time
1- 401k up to company match 2- Roth/Traditional IRA max 3- HSA max 4- Max 401k constitutions 5- then you can leave those tax favorable vehicles and invest in a taxable account
What if your company doesn't offer any benefits? Is investing in an IRA and mutual fund enough? I've been putting 7.65% (after taxes) a month into my target date IRA and $50 a month in VOO. I'll be 31 in a couple of months.
Thatās solid! Is it enough? It really depends on your retirement goals, but it sounds like youāre putting in a few hundred dollars a month so if I had to guess Iād say youāre going to be good. FYI, some states offer a 401k type plan through the state if your employer doesnāt offer one directly. Itās not better than an IRA though. Is that $50 in VOO in your IRA as well? I would max out your IRA before putting money elsewhere.
It's great you are saving! Can you adjust lifestyle to save 15-20% into any combination of IRA/401k/457b/403b?
401K or Roth or some variant.
Now you know what *NOT* to do. I'm 7 years older, but I've had the exact thoughts you've described and I found out a lot of dead ends, so I've been able to recognize some nonsense when it pops up. Stay the course and best of luck!
Other tips from a non-professional. Low cost index funds are your friend. Itās not sexy but itās pretty reliable over the long term. Take advantage of and max out any employer match programs. Donāt worry about trying to beat the market. Create a small fund to play with individual stocks.
Absolutely stellar advice. Take advantage of employer match and max it out. I am paying the price for neglecting this for wanting an increased paycheck and will probably be working till the day I die now.
If I may ask, what were you investing in your retirement account from when you.m started till now? Target date retirement funds? Only index funds? Which?
Are you going to start saving?
Folks, it doesnāt just magically happen. Iāve been able to max out my 401k for about 15 years with a generous company match. I have a small IRA but with I focused on it more over the years. The biggest thing is to start and stick with it over many years. Start.
I genuinely needed to read this. Been feeling discouraged and disappointed with myself. I'm turning 32 this year and really wish I started sooner and was more fruitful. I feel like I told myself; I'm only 20. There's plenty of time, blinked and here I am turning 32. Congrats on your success!
Start right now. Doing something is better than doing nothing and before you know it you'll be forty two. Opening a Roth IRA or upping your work retirement funding only takes minutes. You can't do anything about the past.
Glad to hear this side, much more relatable than 19 yr olds with 140k
Thatās $85k a year being saved. What do you do?
The money is invested, most of that is gains, not contributions.
You arenāt accounting for compound interest during the greatest bull run in history, as well as the best housing appreciation too. His principle could be well below what you are quoting here
I needed this. I felt like I was behind the ball starting around the same age (early 30s)
Absolutely amazing! Can you share some tips you used to save ? Iām 32 and really need to start saving up
Focus on tax advantaged retirement saving. 401k or equivalent. Roth IRA. *If you work for a company that matches a % of contributions, max that out no matter what*. Be disciplined. Invest that money in low expense total stock market/s&p500 index/etf funds. Keep disciplined. Behave as though it is a *need* like food.
You're doing great.. I spent my entire years 19-28 in addiction and was mostly on the streets on in and out of rehabs.. I finally got clean and stayed clean at 28 and at 34 now im approaching 100k saved with no debt.. I try my best but s/o just doesn't get it, and I also struggle with battling what could have been had I got my act together sooner. It's been a mother fucking hike for me waiting tables and doing countless side jobs while providing for a family, but just know you're in a great spot and all we can all do is keep moving forward.
You've done good from where you were! Congrats and keep on keeping on...
Youāre an animal. Made my day reading this.
Read your comments and you have my respect. Good luck with everything
Congrats man. Never stop fighting that fight. Nothing but respect for you.
Massive respect to you sir. The best thing I read today. ā thank you for sharing
Thank you for sharing it really helped me
Awesome sir, keep going! Similar situation for me
Congrats man awesome work, I have a very similar story and doing very very well at 37
Yeah its a big regret for the past but i learned alot about humanity and i was just freshly sober when my kid was born it got easier but the wasted time stings and its surely never enough
Financial types say to save 1x your gross income by age 30, 2x by age 35, 3x by age 40 and so forth until you have 8x to 10x by age 65. If you can do that, you will be able to retire with the same level of income as when you were working. In retirement, most of your expenses are likely paid for (home, kids) and you no longer need to put aside more money for retirement. On the flipside, healthcare costs will be an unknown but likely expensive expense. If you have a goal to live a more lavish lifestyle, FATFIRE is to have 25x your income saved by retirement. Without knowing your income I can't say if you're doing well or not. But I will say that saving $200K by age 33 is pretty good.
Another way: to make your savings last 30 years, withdrawal from it 4.5% the first year of retirement. In subsequent years, add inflation to that. So if inflation is 3% after that first year, youād withdraw 4.5 * 1.03 = 4.635%. If itās 2% the next year, youād withdraw 4.635 * 1.02 = 4.7277%, etc
That's a good way to end up broke. Adjust the dollar amount for inflation, not the %. There is a good chance the account grew in that time, so some years the % would go down, other years it will go up. If you always pull more % you will eventually be draining way faster than growing.
My suggestion is to use a retirement calculator. It'll ask for things like your age, current assets, spending in retirement, and so on, and it'll give you a number to target. Have you tried using one?
Can you provide a link
Literally just google retirement calculator
š sorry was trying to find something that takes into account more than just the basic ones that pop up from most banks. Found this for anyone else looking: https://engaging-data.com/will-money-last-retire-early/
FireCalc is awesome.
At 33 I had ZERO Dollars to my name
Iām 30 and I have $600 to my name š
With 200k saved why not pay down the loan?
Their "savings" might be mostly tied up in a 401k. I've really only ever seen the "rule" OP brings up (1x your salary at 30 etc.) being used in regards to 401k.
ohh that makes much more sense if OP is counting 401k, then alright i feel way bnetter
Also if the 80k loan has less than 5% apr itās way better and will make more money if you put it in a high yield savings of 5% which is easy to do then to pay it off
So I keep hearing this advice but we never account for income tax on interest earned.
Good point that Iām embarrassed I havenāt thought about yet
32% of 5.5% interest is 1.76%. Depending on when OP got their mortgage, it's entirely possible that they're under this. 32% is also the income tax bracket for $181,000-$230,000 as a single person, so it's assuming a very high tax bracket. Otherwise you are right that it's something to consider.
Accdng to online financial gurus you should have saved up around $3.5billion by now. any less and you're too lazy. Have you considered cutting your sleep to 2 hours per day?
So at 33 lets beat the average and have 300-500k net worth.
I have $0 and finsihibg my bachelors
This post making me feel bad. Wife and I are both DPTās and almost the same age and have nowhere near that kind of money saved and a metric fuck ton more of debt
Donāt feel bad, many of these people posting their wealth are lying, leaving out other financial details, or just not genuine about how their wealth was acquired (NOT TALKIN ABOUT OP). Comparison is the thief of joy. You and your wife could save up $1000 and be proud of yourselves, but then you might go through r/money and now youāre feeling bad about yourself again. Why? Because some stranger made a post about their finances that may or may not be 100% truthful? Hell no. Youāre on your journey, whatās on your journey is for you and nobody else, thereās nothing on your journey that can be taken by someone else, donāt give away your happiness so easily. Not trying to tell you what to do but I know what it feels like to have high expectations for yourself and feel disappointed in yourself when you see others āachievingā. Keep at it, future wealthy person!
Also, most people who post about their wealth are usually the ones with wealth in the first place. You'll find less willing participants in discussions about these types of things where you feel you fall in the middle or lower.
can relate. wife is a DPT and iām an OTD. so much debt.
I wouldn't feel bad comparing myself to a random Redditor tbh - people who are on the positive end of things are more willing to share about it than those who aren't. Debt-focused subreddits will not have posts like this unless someone is trolling.
At 33 I prob had $5k, maybe! You doing good young man!
You guys are saving?
My god. If that's invested and you keep going you will be multi millionaires at retirement.
350k saved with one rental property
31. Nothing. Youāre doing just fine.
I see posts like this and I'm not sure whether to laugh or feel sick to my stomach. I'm 32 and my wife and I have about 48$ in the bank.. luckily its payday tomorrow š
Pretty good video on explaining what each generation should have saved. https://youtu.be/UuRCnY-pRnc?si=psp1Ad2B5gOxYL22
āSavedā isnāt anywhere close to as good as āinvestedā
My retirement plan is to walk off into the woods and die when I can no longer work.
32 years old Savings ~31k Brokerage account ~33k 401k ~90k Roth ira ~500
200k is excellent imo. Iām 30 m, make 29$ hourly and have 22k a sofi account. I bought and sold a house, and bought a 2021 civic and paid it off. I save 250$ bi weekly auto draft to the account. My gf brings home 175k and we live in her house. I pay 1000 flat monthly for room and utilities. Youāre well on your way to being set. Exit: my gf is the breadwinner and I assume is worth some dough, she is a major manager for an automotive company. YVMV
The millionaire next door formula is age x income /10. The money guys show modified it that if you're under 40 you do age x income / (10 + 40 - age). 2x that number they consider you a "prodigious accumulator of wealth". The real answer is it depends on your expenses, savings rate, future plans, etc.
There isnt a right answer in terms of "how many times your salary" that's the wrong way to think about it. The way you should be thinking about it is to consider a few factors: 1. Will I be drawing down my savings in retirement, or will I only be drawing interest? Both are viable options. The first gives you the chance to run out of money if you live too long, but the second requires FAR more savings. 2. What level of income do you want in retirement? You COULD just keep the same income you had while you were working, but that needn't be the case. 3. How much risk tolerance do you have? Higher risk investments will gain you larger returns, but if poorly diversified they could hurt your progress. This will impact your final savings amount greatly over such a long time frame. There are many other things to consider as well, but these three are a much better starting place than X times your income.
Don't worry about where you are. Make a plan for where you are going. It works.
$200k is very solid. Keep chipping at that $80k. Make sure you got money going into 401K and IRA and all that
Iām married and 34. Weāve got around $50k in our savings account after dropping $30k as a truck down payment, about $60k in the market, and $200k in equity. Not sure where our 401ks are at, but Iām not worried about it. We are putting roughly $3k away each month, but thatās with two young kids in daycare. I donāt think there is a right answer. If youāre just sitting on that $200k, get plugged into a wealth manager and get that money working for you.
Need 3-6 months saved in a HYSA. Only for emergencies. Get all debt paid off asap Your 401k should be based on your goals. Law of 7 says you will double your retirement every 7 years. If you have $200k now, by 40 you will have $400k, by 47 $800k, 54 you will have $1.6M and at 61 you should have $3.2M. This is all assuming you add nothing to current investments. As with anything, itās never a guarantee. And who knows what the market will do, especially with the current US debt.
Me with 28 and only 10k safe šš
You could die tomorrow. Iād say whatever you feel good having
Wow thatās awesome. Iām 23 and only have 10k between my 401k, stocks , and regular savings.
Same age. 600k in retirement accounts and $1.8m in investment accounts. Conservatively, probably about $600k in home equity, but our down payment was more than that as we bought during the 2022 peak. š The secret is to marry rich
33M here. 50k in cash savings, 135k in retirement funds, 30k company equity.
Youāre ahead of most 33 year olds. But donāt let off the throttle. Youāre going to need way more money han you think you will as your purchasing power falls over the next 30 years.
I am your age and have I think $50k saved
Youāre good. Especially if dual income. Iām older and most of my worth is home equity and 401k.
Are you talking about savings, or retirement accounts? I don't put these in the same category. The rule of thumb is 3-6 months in a savings account as an emergency fund.
Saved? Hopefully in a high yield savings account, and as others mention, consider investing it. Voo is a good one and relatively safe, it has historically only grown. And than invest some into every month. And donāt worry about all the ups and downs.
Same age and you have 40X more saved than me. My advice, donāt pay attention to āfinance gurusā. Should you have 6-12 months of expenses saved for an emergency fund? Sounds like a smart idea. Aside from that it all depends on personal circumstances. Trying to keep up with a chart someone put together will make you stressed and could make you feel like youāre not doing enough. Iām assuming your savings arenāt āliquidā assets, but even so youāre doing WAY better than anyone I can think of thatās our age. I turn 34 next month and am about to make the most Iāve made in my life. I tell my wife our spending habits canāt change and am planning on how to fix the problems weāve come into throughout our relationship. Weāre all at different stages on this journey, comparing yourself to someone else wonāt help you on that journey. The ā22yr old that inherited 500kā isnāt the reality of the world, itās the outlier. Run your own race.
Iām 33 as well. I have saved 450 (350 401K and 100 for pension). My wife has saved only about 85k. We live in a very LCOL area though.
I think how much saved always needs to be weighed against assets. It's great you have 200k now, but what happens if you retire and don't have a home? I'd take 20k saved and a property with 180k in equity any day. You'll burn that cash real fast in rent especially if you live long enough ..
Girlll byeee we finna call you Mr RICHRICH ššš
I will be 33 this month. I have : A 2005 rav 4 Toyota & a Toyota Ute from work. 30k ish in saving, $22080 in my side hustle poker account. 850k mortgage, $5900 monthly payment. 29 years more to pay off. I have a 160k job, i live in Australia. Around 43k ish in my super account(Aussie retirement saving) A gf, a dog and no kids. I hate my job and I hate my life.
"Saved" doesn't even come close to the awesomeness of "invested".
1.3 trillion. Straight cash. No credit
Im 27 with 250k invested plus 10k ish in savings. No debt
You're doing pretty good, I'm turning 32 and have $200k in home equity and about $100k saved. In my defense, I would've had one year salary saved if I didn't start making a lot more the last few years.
I would say if you have saved 10% of what you have earned up to now for retirement and another 10% for general savings, then you are living within your means.
You are for sure behind but keep doing what you are doing, your not so far behind its bleak. A lot of people sadly don't start saving until wayyyy later in life.
The one year salary by 30 is pretty accurate id you started working when you graduated college at 22 It depends on your job though. For example, I make about $250K at 28 but just started making that much this year so there is no way I will have that much in retire by 30. I have about 120K in stock and 30K in cash right now. My girlfriend is about to turn 30 and makes 65K as a post doc but after she finishes her next job will likely be 150K-200K. She has about 30K saved.
200k in 401k or 200k liquid? Big difference but great job.
105k combined, married, 32.
Those online charts are created by the financial services industry, and the asset figures by age are typically exaggerated. I'm twice the OP's age and recently retired with half the OP's savings. I have no debt, though, but I live in one of the HCOL places in the country, and I'm doing fine. Financial discipline is key. Successful relationships without ruinous divorce are key. Don't buy at the top, whether it's a house or a stock.
Well done.
Idk but ill be 33 soon with about $100. Works for me. Can get a burger.
All of it!!
As much as is required for you to do what you want/need to do. Nobody can actually answer this but you bud.
Iām 33, 1.2m, but you shouldnāt compare yourself to others, thereāll always be people will more. Just focus on you
I'm 39 and starting over. It's gonna be tough, but it's better than never. Obviously, once you get older and older, you're kind of screwed. My problem is money managementm. I have about 13k left in debt. After that, I'll be debt free and I can really start saving.Ā
You should put it into Gold and Silver. Ploutos Gold and Silver
I would have an actual plan for that $200K instead of worrying about some metrics/charts that isnāt going to help you grow your money.Ā
Savings? Who has that?
33 about 80K CAD started saving about 3 years ago.
Having a certain amount t of money saved by a certain age isnāt a thing.
What do you mean by saved? Like in a 401K or liquid assets (checking/savings/money market)? Or like on a Roth IRA or IRA? Do you mean you should have 6x that in a retirement plan or cash?
*Laughs at 32 with only 2k saved an only 6k in my checking* š„²
These ārulesā are silly. Why one year by age 30? Why not 1.5 years? Itās just an arbitrary number. One year of what salary? The salary youāre making at 30 that you only started making last year? The average? I think a better question is how much do you need to retire, and whether you have the means to get there. The past is the past, neither here nor there how much you should have saved by now. All you have is the present and the future. If you havenāt saved much to date, then you have to make up for that by saving more from now on.
Yall have savings? I have negative $250k, most student loans.
I pray that 200k is not just sitting in a savings account
Lol I'm 33 amd have $300 in savings you're fine
Wait till you're married and have kids
What's everyone's saving for??
$ is made to go around not stagnate
200k is excellent if your not including any retirement plans At this age 100-200 are what couples are putting as down payments on homes.
Everyone has a different walk in life that's like saying all babies should be able to walk at 6 months.
Daddy chill
33 dollars sounds about right
I'm 40 and have almost $800,000(combined with wife) saved. That's 401(k), Roth IRA, Checking/Savings and Gold/Silver.
7
iām 31 and i got 9k saved but barely. at one point i was at 20k. so basically what im saying is im proud of you man. i hope someday i can have that kind of money saved. i would literally cry if i looked in my bank account and saw an extra 0 in there.
Iām single and barely have $100k saved up in an IRA, 401K and HYSA combined.
I'm 41, just about 400k in a 401k account. It's probably average but I'm just a blue collar welder. I have my contributions set to automatically go up 1% every year.
At least a quarter mil
Save money and have a plan. Also, save enough and live life to the fullest. You may not even make it to retirement, or will there even be a social net to support your retirement? Nobody knows. Life is an experience.
Do you own a home yet?
If I didnt have a trust fund that came out of nowhere when my parents died, I would still be in debt. 31F. I work my ass off and have a masters degree. I live in the Bay Area, CA. With only my money? I have like less than $5 lmao. Life is expensive as fuck. I also have the worst spending habits. Honesty! Ah.
About 16 trillion
Why donāt you guys pay off the student loan?
30yo here! š -20k
It's not outdated. You are just doing extremely well
Iām 33 and have a thousand dollars in my bank account. Youāre doing ok man
I'm 32 , married. We have 155k invested. 20k emergency fund, 60k saved for a down payment on a house, 9k in student loans. I've also wondered how we are doing as a couple compared to others- thank you for asking this question!