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Build the high yield savings up until you have 6 months worth of expenses. Max out your 401k. Then pile everything into an index fund in a regular investment account (any broad market option like SCHB, etc.)
Also max out a Roth IRA - 5.5K a year is easy to
Put away and it adds up really quickly
Blow all of it off trying to get laid and experiences. If you stay in consulting waiting 2 years before max investments is worth the extra fun in your early 20’s
You can buy drugs with it
OP, I would encourage you to do some future value calculations based on different saving targets. Saving more earlier gives you a much better shot at achieving your long term financial goals thanks to TVM. Is also a great way to brush up on financial literacy Also consider that life is a marathon, not a sprint. Once you hit 30, you suddenly don’t lose the ability to have fun. Find the equilibrium between saving everything and spending every nickel that works with your goals
Max out your 401k every year until you retire ($18,000 a year). You will have millions by the time you retire.
Also have 6 months of salary as an emergency fund
You all forgot bitcoin 😉
Crypto
Max out Roth IRA as well as 401(k) - you want to diversify your tax advantaged accounts!
Following
Agree on IRA too - forgot about that cause I’m over the income limit for it (and I don’t want to do the conversion off the non-deductible thing)
^yep key is to max it out before you are past the income limit
118k (?)
P1, for 2018 you can contribute up to 5.5k if you earn 120k or less. Contribution amount gradually declines from 120k-135k. Ineligible to contribute if you earn over 135k
Travel
Yeah def travel and have some fun in your 20s. When you hit 30 you’ll wish you did if you don’t. The money will make life easier but what’s the point if you’re not really living life ?
You can still backdoor a Roth if you’re over the income limit by converting a traditional IRA
Enjoy your money