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Hi Fishes,
What will be my in hand salary
Yoe - 4
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Especially on weekends 😅
Rethink gets Scotia. Reaction time!
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Taking it to the next level. 🎂😅
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Well this makes me feel better about myself at 25
Just curious for those that have a ton of savings but no retirement. Why are you holding so much cash that isn’t making money for you? Why not put into retirement or investments? Genuinely curious as my situation is the opposite. I use my investments as basically my savings if things were to go bad.
30
Salary - 120
Savings - 10
Retirement - 70
Investments - 30
Debt - 350 house, car, student
Chief
If things were to go bad, how quickly would you burn through your savings? And how dramatically would your investments drop in value?
Thought of this tweet- jealous of that salary though, nicely done
Rising Star
Wut....
Listen, with that salary you just need discipline not comparison between people you have no clue about their situation. Focus on reducing debt, the rest will come
33
Salary - 140k
Savings - 40k
Retirement - 0k
Investment - 0k
Debt - 0k
35
Salary - 240k
Savings - $70k
Retirement - $600k
Investments - $700k
Debt - $90k
It’s all 3% debt in tax deductible rental properties, essentially 2% after deductions.
Rather take that $90k and expand my portfolio
Oof. Bad shape confirmed. No numbers needed. You can do it!
32
Salary 110k
Savings 40k
Retirement 65k
Investment 135k (house down payment and stock portfolios)
Debt 400k (mortgage)
Rising Star
You’re self-employed, so I know things are often more complicated than a normal salary worker (and they often treat the business as a retirement via an exit op) but this is shocking to only have 3 months of (pre-tax) salary saved.
Not all is lost, of course. On a positive note, being self-employed comes with a host of benefits to get you in shape: check out SEP IRAs. You can stash away 57,000/year through a combination of “employer” and “employee” contributions, so you can save on both personal and business taxes. Your salary affords you the ability to quickly make up on your retirement if you control the expense side.
Second, get off the hedonic treadmill. Simply put, stop buying crap you don’t need to impress people who likely don’t care (cribbed this from Dave Ramsey). My wife and I combined make $100k less than you and have 6x the assets you do (in a HCOL area).
Our combined car age is 9.5 years, we live in a “single family semi-detached” home (in a good area, but on the outskirts of the city). It’s all about choices my friend.
35
Salary: 118k
Savings: 80k
Retirement: 30k
Investments: 0
Debt: 0
I gotta do something about my salary and Savings. 😑
Time to move on i guess.
Good news: great income. Bad news: little to no savings/retirement. High debt. Good news: It will be hard work but you can fix the bad news with your income.
One clarification: I’d encourage not to think of savings/retirement/investment as separate buckets. There are things you’re saving/investing for: emergency fund, house, kids’ education, comfy retirement. And there are the accounts/vehicles you use for those: 401k, HSA, 529, brokerage. When you benchmark $, it probably makes more sense just to y’all about short-term savings and long-term investments.
What kind of debt? If student, obviously you need a budget that gets you out fast. You can probably do that in 3-4 years without living like a monk. If it’s low interest, that might not actually be your priority. If it’s consumer debt, you need to fix the underlying problem (spending) ASAP.
The decision tree linked below as well as the wiki on reddit/r/personalfinance are very good. The wiki and that forum aren’t aimed at someone with your income so you take take a bit of liberty. A $6k used car might be in your financial best interest but a $20k CPO is probably workable even with your savings/debt goals.
My 2 pieces of advice
1. Go to YNAB.com. Track expenses, make a budget, and generally get your poop in a group, including changing spending habits.
2. Follow the decision tree below.
https://www.reddit.com/r/personalfinance/comments/4gdlu9/how_to_prioritize_spending_your_money_a_flowchart/
Sofi and CommonBond variable rate refis from a few years ago. With ~0% fed rate you can’t get spreads that low anymore though. Best right now is probably LIBOR +2.5 = 2.5 with autopay.
Chief
Similar age and in a way you are behind others but you have a great salary.
When did you finish school?
My suggestion is to begin by maxing 401k and Roth/Roth IRA investments.
Begin applying as much as you reasonably can do debt to drive down interest payments.
It also heavily depends on home mortgage/rent, col where you live, marital status, etc.
I’d speak to an accountant/financial planner on ways to optimize your tax rate and debt obligations.
24 years old
Salary: $120k
High yield savings account: $13k
Brokerage account: $128k
Retirement accounts: $137k
Total net worth: $278k
Debt: $0
That app is amazing. Highly recommend it to everyone else
For the record, I am a bit older but after going though an ugly Divorce/Custody where I lost a ton on Bad Real Estate, Duplicate Expenses and Lawyers I am slowly recovering in a small city
Other than salary these buckets were 0 in 2012 and debt was around 150k, you can do it!
44
250k Salary
40k Cash savings
15K Company stock plan
275K retirement savings
100K Other investments
200K home Equity
50K in 0% loans
Cars........
Is that debt a house or miscellaneous things? If a house it's fine but if that's generic credit card debt you probably need to assess what you're buying.
School loans
Rising Star
You only need one number - net worth.
36, $1.2M. Self made. Grateful for those who’ve helped me along the way
I’d contend there’s a difference in tax advantaged vs non tax advantaged accounts that adds a bit more resolution
37
Salary - 250k
Savings - 350k (in the process of buying a house)
Retirement - 250k
Investments - 700k (condo)
Debt - 0
39
Salary: 160k
Savings: 180k
Retirement: 100k
Investments:0
Debt: 0 (own 350k home)
Invest savings or buy a property to rent out?
Invest into the market to perhaps diversify given you have a property?
32
Salary - 120
Liquid investments & savings - 120
Retirement - 25
Debt - 0