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Bain & Company Can someone recommend a good starting point on how to go around solving case interviews? What frameworks should I follow? I am kinda new to case interview and want to develop skills to solve them. Any books, online sources would be really appreciable. Deloitte EY-Parthenon Strategy& McKinsey & Company Boston Consulting Group Bain & Company
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Your strategy for what? You didn’t say what your goals are
I’m really just saving for the sake of saving. No real goal. I just want to be as smart as possible with my money. I plan to keep my money in the index fund for at least the next 10 years. No get rich quick plans. Just smart money management
Thanks IBM, I already own my first home. I bought it last year. You’re right. We’re extremely blessed. 🙏🏾
Congrats!!!
Take your etf money and put it in your 401k. Work towards maxing the 401k, you can afford to
The moment you can pay a down payment - buy your first house . You can write down interest against tax and over time the capital appreciates too . Way better than renting . Also maxing out 401K is useful only if you carefully diversify what it’s invested in . Depending on how you view it - it would be good to start spending what little you can on charity as well . We are all generally blessed to make this kind of money and should do what we can to help others less fortunate - and financially you again get some tax benefit .
I think you’re doing better than most. IMO you should only contribute to your 401k up until the employer match, then max out your Roth IRA, then personal investments Assuming you’re in your 20s, no cc debt, and at least a 6 month emergency fund
D3, yep i meant more that under the assumption that someone is maxing out employer match and Roth IRA. Generally speaking, isnt it better to pour remaining savings into maxing 401K as opposed to just buying ETFs, stocks etc.?
Change your 401k contribution to hit the max allowable unless you need that money for expenses. Why give that money away to IRS?
What everyone else said. If you already own a home, establish an emergency savings account and send the rest to 401k and IRA. Only after that should you invest in ETFs outside of those
Hopefully you are maxing your IRA as well
Max out 401k and Roth IRA now. Due to the magic of compounding interest, that could work out better than bigger investments later in life.
There are two ways to save more: increase your earnings and reduce your costs. The way you manage your money won't make a big difference as long as you are investing. So, let's dig deeper:
Increase earnings: you can get promoted or receive a larger bonus. To achieve that, you gotta work smart and hard - all you certainly already know.
Reduce costs: what is your full potential for reducing cost of living? Try to figure out how can you get lower fixed costs and minimize shopping and luxury. Remember that minimize doesn't mean "make it zero". You definitely want to spend some money rewarding yourself for the good work you are delivering.
In the end of the day, your salary will increase only once every 1-3 years. So reducing your costs is key to save more. Have a monthly savings target and "pay yourself first" (which means "save your money before you spend it"). That should reduce the spending temptation. And try to be creative with ways to reduce your costs :)
Best of luck! :)