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re: Financial advice for a young recent graduate
Posted on 7/13/21 at 1:19 pm to Roux57
Posted on 7/13/21 at 1:19 pm to Roux57
I would recommend a minimum of 15% of "your" money (not counting company match or anything) from every paycheck into some retirement vehicle. I wouldn't depend on the company match to keep you on pace for retirement. Company matches can disappear at any time and/or you could change jobs that doesn't have it. It can be a rough transition to take a larger portion of your paycheck later on if needed.
From all my personal situation calcs when I was young (and still hold true for me 15+ years later), if you start by putting 15% back the odds are you shouldnt need to increase your percentage later in life and still have the option of retiring a bit early. You also get to feel every raise properly.
From all my personal situation calcs when I was young (and still hold true for me 15+ years later), if you start by putting 15% back the odds are you shouldnt need to increase your percentage later in life and still have the option of retiring a bit early. You also get to feel every raise properly.
This post was edited on 7/13/21 at 1:22 pm
1
Posted on 7/13/21 at 1:31 pm to notsince98
quote:
would recommend a minimum of 15% of "your" money (not counting company match or anything) from every paycheck into some retirement vehicle. I wouldn't depend on the company match to keep you on pace for retirement. Company matches can disappear at any time and/or you could change jobs that doesn't have it. It can be a rough transition to take a larger portion of your paycheck later on if needed.
From all my personal situation calcs when I was young (and still hold true for me 15+ years later), if you start by putting 15% back the odds are you shouldnt need to increase your percentage later in life and still have the option of retiring a bit early. You also get to feel every raise properly.
Latest Money Guy podcast is specifically about this topic. How much you need to save to retire at each age. Very informative
Posted on 7/13/21 at 3:24 pm to hiltacular
quote:
You will probably be due for a new car in the next couple years so keep that in mind.
quote:
'14 accord 116k miles
Should be fine for longer than that. Keep it properly maintained (driveaccord forums) and don't sell it until you absolutely have to. And when you think you have to, barring an engine or transmission replacement, keep it for another 50k miles.
Signed,
Still driving my 275,000 mi Accord
Posted on 7/13/21 at 3:32 pm to Roux57
I'm not gonna touch the saving/investing part--you're on the right track and other posters have covered it. But the "something not quite right part"--you're 23.
You NEED to travel. Sounds like you followed the "good" path to a practical degree in a timely fashion, interned as an undergrad, and are working in your field. What you need now is to broaden your horizons--go see the world, find out that people all over the world live very differently & manage to find happiness. Too many ppl who do the "right" things in young adulthood end up as very unhappy middle-agers with massive midlife crises. Don't be that guy.
Find a buddy who likes to travel, or go by yourself. Make a list of the places you've always wondered about, or throw darts at a map. But please consider travel experiences as an essential part of "finishing" your education as a human being.
You NEED to travel. Sounds like you followed the "good" path to a practical degree in a timely fashion, interned as an undergrad, and are working in your field. What you need now is to broaden your horizons--go see the world, find out that people all over the world live very differently & manage to find happiness. Too many ppl who do the "right" things in young adulthood end up as very unhappy middle-agers with massive midlife crises. Don't be that guy.
Find a buddy who likes to travel, or go by yourself. Make a list of the places you've always wondered about, or throw darts at a map. But please consider travel experiences as an essential part of "finishing" your education as a human being.
Posted on 7/13/21 at 3:43 pm to Roux57
I could give you some pennies baw
You’re too young to be a boomer and accept 3% gains minus fees for the rest of your life. I invested in cringe vanguard in my 20s which is a Democrat scam to take money from republican working people. They gave like 10 million to Hillary
I wish I had AT to show me the light back then
ETA: these boomers are telling you to get into white shoe etfs
The democrats are gonna hit those with the vacuum cleaner in the next 5 years book it. Kamala will probably wait til her 3rd term to really redistribute the wealth
You’re too young to be a boomer and accept 3% gains minus fees for the rest of your life. I invested in cringe vanguard in my 20s which is a Democrat scam to take money from republican working people. They gave like 10 million to Hillary
I wish I had AT to show me the light back then
ETA: these boomers are telling you to get into white shoe etfs
The democrats are gonna hit those with the vacuum cleaner in the next 5 years book it. Kamala will probably wait til her 3rd term to really redistribute the wealth
This post was edited on 7/13/21 at 3:45 pm
Posted on 7/13/21 at 3:49 pm to Roux57
quote:
Sometimes I feel like I am not saving or investing enough or not doing something quite right, I just cannot put a finger on it.
I can't give much helpful advice because everyone else already has and there are way more smarter people here than I but I'm 35 years old with 2 young kids and I have the 401K, savings, Roth IRA, etc. and I still feel like this.
The fact your posing this question and have a good account of where you stand financially means you'll be just fine. Light years ahead of most at that age. Maybe even most my age
Posted on 7/13/21 at 7:34 pm to Roux57
One thing that helped me was to have a separate savings account. After every pay period, I take anything over $4k in my checking and move it into my savings. (the 4k comes from my monthly budget of ~3.5k in expenses) This gives you a real time idea on if you are following your budget or spending too much. When the savings gets high, I make purchases in a brokerage account. This is the new car, house down payment, vacation fund.
This was done after having the 401k, Roth, HSA, etc. set up on auto draft.
This was done after having the 401k, Roth, HSA, etc. set up on auto draft.
This post was edited on 7/14/21 at 4:33 am
Posted on 7/13/21 at 8:26 pm to Roux57
Compounding interest. If you can save now, take advantage of it. Marriage and kids may put a dent in your saving habits for a few years. I commend you on your savings so far. Nice work!
This post was edited on 7/13/21 at 8:28 pm
Posted on 7/13/21 at 8:52 pm to Roux57
"I do splurge a little bit by being in a nice hunting club that is $2300 a year but no cost can replace that time and those memories with my father."
---
Life is a journey not a destination. Do enjoy the fruits of your labor as you go.
As others have said starting early is superb.
You're going to have a great future, I know it.
---
Life is a journey not a destination. Do enjoy the fruits of your labor as you go.
As others have said starting early is superb.
You're going to have a great future, I know it.
Posted on 7/13/21 at 9:29 pm to ItzMe1972
Please do yourself a favor and read the book I linked below. Follow the 6-weeks worth of steps and put your financial life on an automatic flow system. Hell, you can really get it all set up in 2-3 weeks. It WILL be worth it.
Also, check out the YNAB program (You Need A Budget). This will keep you very aware of where every single dollar goes. First 34 days are free. After that, if it's simply not for you, we'll, there's no obligation. If you see promise, then it's cheap per month and even cheaper for a year's subscription.
Put both of the above together and you'll be able to save, invest, spend, and enjoy life without saying to yourself, "Well, I have money in the bank, so going out this weekend SHOULD be covered in the end". You'll know whether you truly can or you shouldn't.
LINK
Btw, I get nothing from this, but the hopes that I'm paying it forward to a young guy that's looking for some guidance. I truly wish it hadn't started to figure things out in my mid-40's. Ah, well. Just a normal guy here.
Feel free to ask me any questions, if you like.
fathomblue@yahoo.com
Also, check out the YNAB program (You Need A Budget). This will keep you very aware of where every single dollar goes. First 34 days are free. After that, if it's simply not for you, we'll, there's no obligation. If you see promise, then it's cheap per month and even cheaper for a year's subscription.
Put both of the above together and you'll be able to save, invest, spend, and enjoy life without saying to yourself, "Well, I have money in the bank, so going out this weekend SHOULD be covered in the end". You'll know whether you truly can or you shouldn't.
LINK
Btw, I get nothing from this, but the hopes that I'm paying it forward to a young guy that's looking for some guidance. I truly wish it hadn't started to figure things out in my mid-40's. Ah, well. Just a normal guy here.
Feel free to ask me any questions, if you like.
fathomblue@yahoo.com
Posted on 7/13/21 at 11:27 pm to Roux57
It’s all about the Rule of 72. Basically your money in stocks will double every 7-10 years. You want to give yourself as many of those doubling periods as possible and save as much as possible early. The difference in putting money away at 25 versus 35 is the difference between 1 million vs 2 million or 2 million vs 4 million. You’re an engineer. Do the math.
Posted on 7/14/21 at 12:31 am to Roux57
You're doing the right shite.
I'd maybe caution against buying a house so early in career as you could benefit from being able to move for work.
But, saving be a good bit.
Not doing retarded shite.
Building skillet at work.
You're doing the right stuff.
I'd recommend avoiding paying for an MBA etc.
If it's worthwhile employer will pay at least a good bit of it.
Overall, you're doing shite right.
Enjoy the hunting club. Nothing wrong with rewarding yourself.
I'd maybe caution against buying a house so early in career as you could benefit from being able to move for work.
But, saving be a good bit.
Not doing retarded shite.
Building skillet at work.
You're doing the right stuff.
I'd recommend avoiding paying for an MBA etc.
If it's worthwhile employer will pay at least a good bit of it.
Overall, you're doing shite right.
Enjoy the hunting club. Nothing wrong with rewarding yourself.
Posted on 7/14/21 at 6:24 am to Drizzt
Y’all gonna tell this dude to eat rice and beans beans and rice every day and stop buying drinks at the bar at 23 so he can sock it away in vanguard and he’s gonna put half his income into it and have gained about 50 bucks by the end of the year
If I’m young enough to start over if I lose everything you definitely are baw. We live in changing times. There are dozens of fake companies now that will be real in a year or two that will make you 100x your money if you invest now. Don’t pay some boomer to put you in Apple and ge. I’m not looking at etfs til I get more than a million to put in
If I’m young enough to start over if I lose everything you definitely are baw. We live in changing times. There are dozens of fake companies now that will be real in a year or two that will make you 100x your money if you invest now. Don’t pay some boomer to put you in Apple and ge. I’m not looking at etfs til I get more than a million to put in
This post was edited on 7/14/21 at 11:50 am
Posted on 7/14/21 at 8:02 am to Roux57
Man I guess I have been overthinking myself quite a bit, I appreciate each and everyone's thoughts! Looking forward to the future, but I'm not going to miss out on the present. Yall are awesome!
Posted on 7/14/21 at 10:23 am to Roux57
Don't do what I did at your age!
Look in the Standard Lithium thread here. It's worth following.
Look in the Standard Lithium thread here. It's worth following.
Posted on 7/14/21 at 10:34 am to Roux57
All of the basics are covered in previous responses. I would like to add one that has not been covered.
Bring your lunch to work. Spending $10 or so each day is a major budget killer. I used to spend $50 or so a week for lunch and thought it was normal. Once I decided to bring leftovers/sandwiches to work it made a huge difference.
Bring your lunch to work. Spending $10 or so each day is a major budget killer. I used to spend $50 or so a week for lunch and thought it was normal. Once I decided to bring leftovers/sandwiches to work it made a huge difference.
Posted on 7/14/21 at 11:43 am to Roux57
As many have already start the habits budgeting, and investing early in life, the financial security I now have in my 60s is the result of financial decisions I made in my 20s, and early 30s.
Posted on 7/18/21 at 12:37 am to Roux57
Learn to cook and invest in cooking equipment that will last. You’ll save so much money, and probably end up having healthier meals. On a related note, invest in your health and work out.
Spending is an addiction, and a war most people lose. Only buy and invest in things that will last and won’t be a victim of a fashion trend- your accord is a good example of investing in things that last (although most consumer items, including cars, still aren’t great investments- but at least you are minimizing loss with a vehicle like that).
It’s feels so much better to not see the majority of your paycheck immediately wash away because of debts, or you want to get the latest “thing”. And then you resell it for a fraction of the price and realized you lit money on fire. Nothing worse than realizing you sat a desk for a month for no reason other than to pay for things that weren’t necessary.
Spending is an addiction, and a war most people lose. Only buy and invest in things that will last and won’t be a victim of a fashion trend- your accord is a good example of investing in things that last (although most consumer items, including cars, still aren’t great investments- but at least you are minimizing loss with a vehicle like that).
It’s feels so much better to not see the majority of your paycheck immediately wash away because of debts, or you want to get the latest “thing”. And then you resell it for a fraction of the price and realized you lit money on fire. Nothing worse than realizing you sat a desk for a month for no reason other than to pay for things that weren’t necessary.
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