For me everything goes into investment/HYSA after I pay off my credit debt and bills, leaving only $1000 in checking account. 26 years old single male. Should I enjoy life in 20s or start saving right now? TC: measly 240k
Basically identical numbers here
AI’s gonna change the world and money. In my opinion I’d say move to nyc and enjoy life
30% rent 10% 401k 10% necessities 40% rare fish investing 10% candles
I think I have seen you on HENRY
60% mortgage (early principal repayment, but withdrawable if I need to), 20% savings/investments, 20% household/personal expenses
At this time of the year, 46% go to taxes with the remaining 54% into Roth 401K + Backdoor, HSA, and benefits.
I'll tell you 3 pieces of information and hopefully change your life long term. 1. Figure out how to reduce taxes. If you are w2: 401k, backdoor and megabackdoor Roth. Don't mess with 529 plans. Then look into short term rentals loophole and how to use depreciation to offset w2 income. Tax saved upfront will compound. 2. Judiciously take loans. For the short term rentals, take loans that will be covered by the cash generated. Look into buying a business and running it on the side. Passive income can start giving freedom quickly. 3. Invest wisely : everyone will tell you to invest in vti, voo etc. You are young. You should have riskier allocations. Maybe 60% in ETF and then buy good stable individual stocks with upside. Companies that will be around later. Have some crypto allocation. Secondly, invest and forget. Don't play day trading and buying meme stocks. Invest such that you can enjoy your life without stress. Do all the above while keeping some money for hobbies and enjoyment. Judiciously frugal. Do the things that you can't do at 45 like starting a business, running ironman, travelling the world backpacking. I wish you well my friend. 👊🏻
17% taxes 4% benefits 2% HSA savings 12% 401k 22% invested in brokerage account 16% Housing, insurance, property taxes 27% all other expenses
Based off after-tax, not gross: 2.6% mortgage 4.4% preschool 1.5% bills 8.6% other spending 80+% investing Youngest kid is switching to public school this year. Really excited to drop off our largest expense
Brother, just as a friend, I’m twice your age, and you would do well to maximize your 401(k) at a minimum. When you hit 40, you will be very thankful. When you’re able to retire at a decent age because you make good decisions now…. A friend of mine says you’re going to do a lot of hard at some point in your life. Do it upfront when you’re young, or you’re going to do it later in life and it’s going to suck. Good luck. Make good decisions.
This is a true friend giving you advice. Also, remember that you should pay off credit card debt before investing. Laying down a 20% APR credit card is the same as getting a 26% return on the amount you paid RISK FREE