I feel like I am at a point where my savings and income is so high (relative to what I am used to) that it’s almost uncomfortable and I don’t feel capable to manage it. I’m signing up for a financial planner to manage it and help me make a plan so they can help me out.
Has anyone else gone through a point where you feel this way? Back when I was making $9 an hour it was easy - I knew exactly where everything should go and what I can and cannot afford. I’m thinking I will be good as long as I listen to my financial planner and maintain transparency with them. Has this been true for you, or did something else help you handle this?
I completely get that this sounds like humble bragging and almost icky - sorry. But I grew up poor in America, I am not psychologically used to this and am having some trouble. No one in family to talk to openly. Any tips, resources, stories may be useful.
1) pay off any credit card or other high interest debt if you have it
2) build a nice 3-6 month emergency fund, use gross income not expenses
3) put some cash aside for purchases intended in the next year (new phone, car, etc)
4) max your 401k match, then Roth IRA (backdoor), then 401k in total. Usually index funds are recommended here
5) if you have kids hit up a 529
6) HSA max if you have it (acts as best tax advantage inv account)
7) take what’s left and put it into your brokerage of choice (recommend: fidelity, vanguard, Schwab) and do a basic split into index funds
8) ignore looking at your money, and pre-plan all your expenses and save the money in advance to avoid touching your savings/investments
9) retire and live awesome