I’m a 25 year old single male with no kids living in Omaha,NE that is a independent contractor. I recently made a “M180” in my life so a lot of this stuff is still new to me.
My gross salary income is about $5,000/month after business expenses for now
My total monthly expenses last month were $1,229 + about $134 for taxes and accountant. So I have about $3,637 left to invest which is about %72.74 of my income.
I opened up a SEP IRA this year and put $10k in it (my accountant told me don’t put anymore in for now, I pay him $400/year)
I also have opened up a Roth IRA and put $5,500 in it
(so in total i have about $15,500 all in VTSAX in my vanguard account, no bonds)
I pay about $300 quarterly for my taxes
My current expenses: (estimate of last month)
Rent $450/month(I moved into a older place so I could walk to work)
Electricity $36/last month
Renter’s insurance is about $10/month (covers up to 6k)
non owners liability insurance about $19/month (just sold my SUV, i’m sure i’ll buy a car in the future but not for a while. I have this insurance because if I need a car I will rent one)
Motorcycle insurance $85/month (full coverage)
Gas $30/month on my motorcycle
Gym membership $19/month
Groceries $230/last month
Restaurants/Fast Food $150 last month
Alcohol/Bar $140 last month
clothing/shoes $60/last month
I don’t have any student loans (I have a bachelors degree) or any liabilities at all - I pay my credit card in full every month.
My assets:
I have $10k in my SEP IRA
I have $5.5K in my Roth IRA
motorcycle is worth about $10k (I just got done paying it off 3 months ago)
and about $15k in savings
Total of about $30.5k (without the motorcycle)
I’m lucky for now my health insurance and dental care are covered through my dad until i’m 26 through the military, so this will be a new expense soon. I don’t have to pay for my cellphone bill either, and I don’t pay for internet. (my neighbor gave me his wifi password)
My questions:
1- I think i’m doing good now any suggestions for me?
2- I don’t have any short term or long term disability insurance. I have enough saved up for short term and plenty of credit if needed. Do you guys think I should have long term disability insurance?
3- Since my retirement accounts are maxed ( I can’t put more than 25% of my income into my SEP IRA right?) I’m going to buy a rental property most likely in the next few months, and many more after that. Would you say this is a good move?
4- Should I focus on building my business more, I make about $60k/year now but could possible get up to $150k/year in the next 5 years.(Thats about the most I could make with this business and it is very time consuming) Or should I try to increase my income with a high paying job.
Thanks for looking!