After paying nyc rent, maxing out retirement accounts, and paying for heath insurance, I have barely anything left for other savings goals (house, vacation....general future). I’m in my late 20s...can anyone give me hope/advice? Already living with roommates.

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The advice on this thread is trippy. Before you reduce retirement contributions, I would strongly recommend you take a hard look at your budget. I would challenge — do you actually have a small net salary, or does it just feel that way? You should know where every single dollar is going if you think you need to be less aggressive. Per the classic advice, the top three expense categories people have: housing, transportation, food. Can you find an apartment in another neighborhood that’s cheaper? Can you find a slightly smaller or less modern apartment? Can you walk more? Can you take fewer Uber’s? Are you ordering too much DoorDash? Can you do dinners at home with friends instead of dinners out? FWIW I am mid twenties in HCOL city and maxing 401k

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Tldr. Jk I read your full post but only perused the article, but I do understand compound interest. I understand your points, my counter is that my assessment is the decision to max also needs to be made thoughtfully. In this case and others it seems to be a default. I'm also not planning to retire at 50 or 55. I try to make my daily life fulfilling so I don't feel like I am counting down to retirement when I can finally begin enjoying life. I'm sure I'll have some days at 58 years old hating work, but I expect I will be looking for productive outlets (prob money making) even after I retire 5-10 years after you.

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I was almost 30 before I really felt ready to even max my 401k so you are doing OK (was at EY in NYC at the time too!) you could try a different neighborhood or fewer amenities in your building if possible. Do a spend analysis. I spent way too much on "I'll just go for one drink" nights so started to pay cash to reign in my tendency to pick up tabs / cover friends and never get paid back. Checking on subscriptions is also helpful to where recurring spend is going.

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You have enough money to live in the greatest city on earth, max your retirement accounts, and you STILL have money leftover...in your 20s. You're doing more than just fine. Move to New Jersey or Queens, stop drinking alcohol, or get a new job if you want greater savings.

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I wasn't a huge fan of living there easier, just using "greatest city in the world" as shorthand for incredibly desirable and incredibly expensive, and cause most people seem to think that it really is!

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What percentage of your salary is going towards maxing out your retirement contributions? I'd readjust those so you're able to save/invest for more short-term and mid-term goals. For example, if you're saving 20% or your income in a 401k, maybe adjust it to save 10% so you can save that 10% (post-tax) to mid-term goals. It depends on your income of course, but that's what I did and I was able to save for a down payment.

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Stay the course. Live within your means. Look for ways to increase income. A little short term pain now will be so worth it looking backwards.

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Maxing out the 401K as in the full 19.5k? Im 24, make 70k, also NYC living, and save about 1000-1200 a month. I only contribute 5% to my 401k & things are manageable. I understand the importance of contributing to retirement, but if you’re doing a full 19.5K it may not be necessary right now.

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KPMG :) but I’ve heard it depends on the client, not the firm. We call it ‘per diem’ vs ‘actuals’. I was on a per diem client before covid (~$250 a week) and was able to frugal-y live off free hotel food most of the time. Ended up pocketing and extra $200 a week because of it!

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There are only two ways to increase savings. Either increase income, or decrease spending. You mention health insurance as a large expense. Most of us in our 20s are relatively healthy, and EY’s HDP is really cheap. Only like $60/month. Are you paying for a more premium plan because you’re a frequent healthcare user?

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Leave NYC if the goal is to save. Even if you make more, you’ll spend more. Once you leave I imagine it’ll become easier.

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Yeah like 10% will set you up for retirement, just not as much and not as baller as saying you max. So far I've never maxed, 3 kids etc and lots of priorities so I expect to get there but a few more years.

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Moved from NYC to FL several years ago. Probably one of the best moves ever.

uplifting

No income tax is a pro/people from Florida huge con though

When you say max out your retirement, do you mean the full $19.5k amount? Reduce that and use it to build towards a down payment. Run your budget got multiple years and play around with retirement contributions when you’d buy, etc.

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