Author Topic: point us in right direction....  (Read 794 times)

hbrocks

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point us in right direction....
« on: November 23, 2018, 01:37:03 PM »
Hi everyone...
Just recently found the MMM site here and we're super motivated to SAVE more of our money but kinda clueless where to start ....what to do....
We are 5 years into a 30yr mortgage, have a 401k with employer match, set to save 13% of my 70ish/yr income.
Just threw 5k into betterment and it's already been a rough ride this last month with that taking hit from how the market is swinging.
I also have about 14k sitting in credit union savings that I'm not quite sure how to leverage.
We are getting married this coming July.....have excellent credit......so we just signed up for the Chase sapphire preferred for the travel points to use for the honeymoon.
Guess I'm looking for some general direction on how to better utilize the money we have coming and going.
Thanks for the site and all the great post!
 


Freedomin5

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Re: point us in right direction....
« Reply #2 on: November 23, 2018, 05:10:28 PM »
Welcome!

If you want to save more money, the formula is simple (but not necessarily easy to do):

1. Maximize income
2. Minimize expenses
3. Invest the difference

If you want to maximize income, look through threads on how to ask for a raise, job hop to increase income, develop a side hustle...there are lots of ways that forum members have come up with to increase their income.

If you want to minimize expenses, then look at the threads that all about refinancing mortgages to get a lower interest rate, Order with which to pay off student loans/credit cards and other debt, and ways to lower other bills and expenses. If you want advice specific to your case, consider posting a full case study (there is a sticky at the top of the Case Study thread that shows you how to post a proper case study with enough info for people to comment on). If you post a case study, be prepared for face punches and to have practically every expense questioned. Iíve found that pretty much nothing is off limits, so you definitely need to approach all comments with an open mind. Youíll get comments on how to save a dollar here or there, but you will also get advice on how to redesign your life so that you simply live on less or need less to be happy.

If you want to invest the difference, then investment order is a good place to start. You can then also post a case study focusing specifically on taxation/401k/IRA/etc issues. As a general rule of thumb, a 50% savings rate is pretty normal here. Some of the really dedicated folk can get their savings rate up to 80%.

Right now, youíre set to save 13%. Thatís quite low. Given that your income is not too bad, then it sounds like you have too much going out each month, but we have no idea whether itís because you have too much house, too much car, too many student loans, or a combo of different things. A case study will give us a chance to help you sort it out.

firescape

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Re: point us in right direction....
« Reply #3 on: November 23, 2018, 05:33:49 PM »
When I first discovered MMM and asked similar questions, someone suggested Jim Collins. https://jlcollinsnh.com/
I'd suggest getting his book too. It's great.
Good luck.

JAYSLOL

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Re: point us in right direction....
« Reply #4 on: November 23, 2018, 05:53:10 PM »
Welcome HB!  If you want truely tailored advice I also recommend a full case study if you can handle the occasional tough love from other forum members :)

I remember when I first found MMM, I read all 400 or so blog posts in like 3 weeks and then moved on to the forums.  I went from a negligible savings rate to a 40% savings rate within a year and am aiming for 50% next year. 

degrom7

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Re: point us in right direction....
« Reply #5 on: November 24, 2018, 08:16:11 AM »
When I first discovered MMM and asked similar questions, someone suggested Jim Collins. https://jlcollinsnh.com/
I'd suggest getting his book too. It's great.
Good luck.

I agree. I read up on the stock series and bought his audio book.


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Financial.Velociraptor

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Re: point us in right direction....
« Reply #6 on: November 24, 2018, 08:39:39 AM »

I also have about 14k sitting in credit union savings that I'm not quite sure how to leverage.

Probably, you should keep it in cash and cash like investments.  So long as you are still dependent on a salary, you need an "emergency fund".  Especially true if you are private sector and can realistically lose your job.  Federal employees probably have more leeway.  It is recommended you keep 6 months of expenses minimum in cash or highly liquid investments.  I kept 12 months until the house was paid the dropped to 6 until FIRE.  I see no point in an emergency fund any longer but I do like a 10k cash cushion to deal with unexpected home ownership expenses and the lumpiness associated with annual taxes and other annual expenses including annual HSA contribution.

hbrocks

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Re: point us in right direction....
« Reply #7 on: November 24, 2018, 09:03:56 AM »
  Thanks for the "Welcome"....and appreciate all the replies... (Thank you)....
ok- JL's book ordered. (website bookmarked and subscribed!)
Much to learn here however, this seems like great advice for good starting point.
Looks like we will be ratcheting up the 401k and soon be getting more familiar with investing.

LessIsLess

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Re: point us in right direction....
« Reply #8 on: November 26, 2018, 08:19:51 PM »
Get your lovely new wife on board with the whole saving/investing train.  It's not going to work without her blessing.  Since you two are young, I would spend a bit more the first couple years of marriage, then full speed ahead with saving / investing.