Author Topic: Progress for 20 something's  (Read 24601 times)

TWStandley

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Re: Progress for 20 something's
« Reply #100 on: August 15, 2016, 11:22:55 AM »
28, Married, One Child.  Wife and I both work decent paying full-time jobs.  Live in a high cost area.  Not as frugal as I would like us to be but not horrible either.

The PLUSES:
Cash: $25k
Car Value: $24K
Investments: $120K (401ks, Roth IRA)
Pension: $10K
Home Value: $389K

THE MINUSES:
Car Loan: $15K @0.9%
Mortgage: $334K @ 4.1%
Current Credit Card Balance (pay off monthly): $1K

Net worth approximately $215K

boarder42

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Re: Progress for 20 something's
« Reply #101 on: August 15, 2016, 11:39:37 AM »
28, Married, One Child.  Wife and I both work decent paying full-time jobs.  Live in a high cost area.  Not as frugal as I would like us to be but not horrible either.

The PLUSES:
Cash: $25k
Car Value: $24K
Investments: $120K (401ks, Roth IRA)
Pension: $10K
Home Value: $389K

THE MINUSES:
Car Loan: $15K @0.9%
Mortgage: $334K @ 4.1%
Current Credit Card Balance (pay off monthly): $1K

Net worth approximately $215K

you need to REFI that mortgage.  should easily get a no cost REFI in the 3's right now.  I'm closing at the end of the month to 3.25% on a 30 year.
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UKMustache

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Re: Progress for 20 something's
« Reply #102 on: August 16, 2016, 03:58:51 AM »
I'm 27 and my wife is 28.

We only discovered MMM about 18 months ago, it makes me sick thinking about how much money we squandered beforehand!

Positive
  • Cash - 1,700
  • Investments - 2,620
  • Pensions - 8,200
  • Home value - 175,000
  • Car value - 18,000

Negative
  • Mortgage (4.99%) - 146,000
  • Car finance (2%) 16,700

Net worth - 42,820

We're in a much better position than we were just a couple of years ago (lots of debt, overdrafts, credit cards, loans for no particular purpose, etc).

The mortgage interest rate is high, we couldn't borrow from the mainstream lenders at the time though because my income was sporadic and didn't match the lending checks brought in after the last recession (UK). 

We should be able to remortgage next year (when the early repayment penalty percentage drops) and if rates remain stable there are deals available around 2%

Now we have our shit together, we should be able to double our net worth in the next 2 years.
« Last Edit: September 16, 2016, 12:31:17 PM by UKMustache »

Good_Juju

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Re: Progress for 20 something's
« Reply #103 on: August 16, 2016, 10:13:45 AM »
Mostly because it doesn't make sense, it's good to have all three types of accounts. Roth, 401k, and Taxable. The taxable makes sense for big purchases since you'll only see a 15% capital gains tax. the 401k is great for when I'm 59.5. While the Roth will be ideal in my 40's so I figure make the taxable large so I can use it as more or less a safety net or if I decide to make a large purchase like a house, or other type of investment.

Depends on how you plan to spend later in life... Most people here max every penny allowed into pre-tax, put zero in Roth, and everything else in taxable and plan to use different methods to use pre tax money like the Roth conversion ladder method.

Most people don't contribute to a Roth here? My plan after I finish killing my student loans is to keep my 401k at the company match, start contributing to a Roth account, and save up for a down payment on a house. The Roth plan is just because that is what is recommended on the personal finance subreddit....but I do like the flexibility it offers for taking money out. I'd love to hear your opinion on it.

afuera

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Re: Progress for 20 something's
« Reply #104 on: August 16, 2016, 11:49:51 AM »
If you are in a high tax bracket now and expect to be in a lower tax bracket in retirement, then traditional is the way to go.
If you are in a lower tax bracket now or think that in general taxes are going to be much higher regardless of tax bracket when you retire, get a Roth.
Personally, I have a Roth and my husband has a Traditional (his is much bigger due to a rollover from an old 401K).
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boarder42

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Re: Progress for 20 something's
« Reply #105 on: August 16, 2016, 01:33:48 PM »
Mostly because it doesn't make sense, it's good to have all three types of accounts. Roth, 401k, and Taxable. The taxable makes sense for big purchases since you'll only see a 15% capital gains tax. the 401k is great for when I'm 59.5. While the Roth will be ideal in my 40's so I figure make the taxable large so I can use it as more or less a safety net or if I decide to make a large purchase like a house, or other type of investment.

Depends on how you plan to spend later in life... Most people here max every penny allowed into pre-tax, put zero in Roth, and everything else in taxable and plan to use different methods to use pre tax money like the Roth conversion ladder method.

Most people don't contribute to a Roth here? My plan after I finish killing my student loans is to keep my 401k at the company match, start contributing to a Roth account, and save up for a down payment on a house. The Roth plan is just because that is what is recommended on the personal finance subreddit....but I do like the flexibility it offers for taking money out. I'd love to hear your opinion on it.

thats not the mustachian way to do it as most here are in higher brackets now than they will be in retirement.  I do it for 2 reasons. 1 my income makes me ... but 2 its part of my plan for withdrawals on the 5 year gap til my roth ladder kicks in.
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CmFtns

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Re: Progress for 20 something's
« Reply #106 on: August 16, 2016, 02:30:53 PM »
Mostly because it doesn't make sense, it's good to have all three types of accounts. Roth, 401k, and Taxable. The taxable makes sense for big purchases since you'll only see a 15% capital gains tax. the 401k is great for when I'm 59.5. While the Roth will be ideal in my 40's so I figure make the taxable large so I can use it as more or less a safety net or if I decide to make a large purchase like a house, or other type of investment.

Depends on how you plan to spend later in life... Most people here max every penny allowed into pre-tax, put zero in Roth, and everything else in taxable and plan to use different methods to use pre tax money like the Roth conversion ladder method.

Most people don't contribute to a Roth here? My plan after I finish killing my student loans is to keep my 401k at the company match, start contributing to a Roth account, and save up for a down payment on a house. The Roth plan is just because that is what is recommended on the personal finance subreddit....but I do like the flexibility it offers for taking money out. I'd love to hear your opinion on it.

I have the ability to put 5500 into an IRA and I can do that Roth (After-Tax) or Traditional (Pre-Tax). I choose to lower my tax burden now as much as possible by choosing a traditional IRA. I do this because I plan to not pay taxes or pay very low taxes during retirement by keeping my income very low and use the roth conversion ladder to get all of that money out of pre-tax accounts without paying taxes on them.

This is the plan that many people on this forum plan to take if they are making incomes in the mid-high 5 figures right now and are planning to retire on $20k-30k/yr
« Last Edit: August 16, 2016, 02:35:54 PM by CmFtns »
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Guava

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Re: Progress for 20 something's
« Reply #107 on: August 22, 2016, 08:32:35 PM »
Today was a discouraging day for me.  My MIL more or less laughed at my idea to FIRE within 20 years, my own mother admitted she had doubts,  and worst of all, my SO has doubts too. Especially if we have kids. I figured someone here would understand this feeling when everyone doubts you. How do you pick yourself up and get back in the FIRE mindset?

Herbert Derp

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Re: Progress for 20 something's
« Reply #108 on: August 22, 2016, 10:48:12 PM »
I'm 25 years old, single. Been working for four years.

Cash: $2,000
Investments: $324,000
Condo: $230,000
Debt: $0

Total net worth: $555,000


Today was a discouraging day for me.  My MIL more or less laughed at my idea to FIRE within 20 years, my own mother admitted she had doubts,  and worst of all, my SO has doubts too. Especially if we have kids. I figured someone here would understand this feeling when everyone doubts you. How do you pick yourself up and get back in the FIRE mindset?

Just roll your eyes at them and move on. Kids are only expensive if you want them to be. Prove to yourself that you can live within a certain budget (take kids into account), as well as save enough money to be FI on said budget. Once you reach that point, the math pretty much proves itself. If you can't prove those numbers, then maybe you should have doubts.
« Last Edit: August 22, 2016, 10:55:08 PM by Herbert Derp »

FrozenBits

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Re: Progress for 20 something's
« Reply #109 on: August 23, 2016, 12:51:29 AM »
Married ages 26/23.

Total investments = 200k
Home equity = 48k
Cash = 2k

Total Net Worth = 250k

Combined yearly income of about 140k gross.  Spending is about 50k.  We are able to tax shelter about 62k per year so that really helps keep the tax bill low.   Our NW has been increasing at a rate of 80-100k per year for the last couple years now.

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HarelLevy1

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Re: Progress for 20 something's
« Reply #110 on: August 23, 2016, 03:13:02 AM »
Young one here. Age 21 living in Israel and single living with parents.
Been working for 8 months at a minimum wage job.
Our currency here is NIS and not $.

Cash: 55,000NIS
Retirement Account: 5,500NIS
Debt: 0
Inv. Portfolio: None at the moment.

Its been almost a year since discharge from army and soon will start Bachelor Degree (Software engineer).
Age 20: 0 Net Worth
Age 21: 60,500NIS Net Worth.

Happy to see all 20's working hard to achieve their goals!

« Last Edit: August 23, 2016, 03:17:00 AM by HarelLevy1 »

VladTheImpaler

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Re: Progress for 20 something's
« Reply #111 on: August 23, 2016, 04:25:50 AM »
I'm exiting my 20s shortly, so this is maybe more of a nostalgic post for me.

At 25 I had just started my post-grad school job and had a net worth of about -100K (not actually bad for putting myself through eight years of school!  Thanks, need-based financial aid in undergrad, and my law school's financial aid office.)

I'm now 29, and my (single) details are:

Cash savings - $8,000 (temporarily depleted, will put back up to ~15K)
Investments - $150,000
Home Value - $610,000
Debt (home loan @ 4.25% and HELOC at 3.4%) - $390,000
All in all, my net worth is approximately 355K.

It seems like you're counting your mortgage twice by listing low equity and then also a 90K debt.  Maybe I'm missing something?  I changed mine to "value" instead.

But I have an obscene income, so I actually could be doing a lot better.  Now that I have my wedding, roof assessment, down payment and student loan debt behind me, hopefully I can become more badass.

You must live in a HCOL city for a "small two bedroom" to be worth $610,000
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onlykelsey

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Re: Progress for 20 something's
« Reply #112 on: August 23, 2016, 07:34:04 AM »
I'm exiting my 20s shortly, so this is maybe more of a nostalgic post for me.

At 25 I had just started my post-grad school job and had a net worth of about -100K (not actually bad for putting myself through eight years of school!  Thanks, need-based financial aid in undergrad, and my law school's financial aid office.)

I'm now 29, and my (single) details are:

Cash savings - $8,000 (temporarily depleted, will put back up to ~15K)
Investments - $150,000
Home Value - $610,000
Debt (home loan @ 4.25% and HELOC at 3.4%) - $390,000
All in all, my net worth is approximately 355K.

It seems like you're counting your mortgage twice by listing low equity and then also a 90K debt.  Maybe I'm missing something?  I changed mine to "value" instead.

But I have an obscene income, so I actually could be doing a lot better.  Now that I have my wedding, roof assessment, down payment and student loan debt behind me, hopefully I can become more badass.

You must live in a HCOL city for a "small two bedroom" to be worth $610,000

Yup, NYC.

use2betrix

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Re: Progress for 20 something's
« Reply #113 on: August 23, 2016, 11:52:47 AM »
28 - M - married (wife doesn't work, I travel for work and she comes with)
Cash - 66k
Investments - 114k

Not too bad but insanely petty given my income. I've came a long ways in the last 18 months though. Really no reason I shouldn't be at 400k+ except for years of consumer suckerism. Still struggling with it some, but getting better.

SuperSaver

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Re: Progress for 20 something's
« Reply #114 on: August 24, 2016, 09:38:10 AM »
Recently turned 26. Cohabitation with Fiance. Making approx $78k combined a year since late 2014.

Cash: approx $5,000 (its fairly low now as we are paying cash for our wedding and refilling emergency fund from our move)
Investment: $10,137.25 in 401k with company match.
Home Value: $123,000 just bought in April. Saving hundreds  on rent and building equity. MCOL but our condo is literally less than a third the cost of the average house in our zip code. Super low crime area that is flanked by fancy neighborhoods. Pretty much in love with our area.
Car: $7,000 a paid off Yaris we share.

Liabilities
House: $116,908.
Student Loans: approx $54,000 (paid off $32,000+ since Dec 2012 when I graduated)

Net worth: ($25,770.75) Negative but, we're happy with our progress. We will have student loans paid off in 4-5 years and the mortgage in 9-10 if we don't get any raises...
« Last Edit: August 24, 2016, 09:46:32 AM by SuperSaver »

icemodeled

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Re: Progress for 20 something's
« Reply #115 on: August 24, 2016, 07:40:05 PM »
I am 28, married, no kids.

Cash savings - $30000
Investments - $1500
Home Value - $130000
Debt - $0

Yikes I hate seeing so little in investments but we just switched my IRA to Vangaurd and are taking it seriously now. I didn't know much about it before - investing - and plan to max out my IRA this year. Also want to open an IRA for my husband to start investing in. Definitely are focus now. We also are on track now of saving 50% of income, which we will continue to try and raise. Overall.. I guess it's ok for my age but still wish we had more invested.

boarder42

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Re: Progress for 20 something's
« Reply #116 on: August 25, 2016, 06:11:15 AM »
I am 28, married, no kids.

Cash savings - $30000
Investments - $1500
Home Value - $130000
Debt - $0

Yikes I hate seeing so little in investments but we just switched my IRA to Vangaurd and are taking it seriously now. I didn't know much about it before - investing - and plan to max out my IRA this year. Also want to open an IRA for my husband to start investing in. Definitely are focus now. We also are on track now of saving 50% of income, which we will continue to try and raise. Overall.. I guess it's ok for my age but still wish we had more invested.



what about 401ks?
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monstermonster

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Re: Progress for 20 something's
« Reply #117 on: September 04, 2016, 12:48:31 PM »
This is my big success of the week, my FICO score from Citi:

Bikes, bowie, and business: using glitter to double my net worth by 30 the journal- with 40 less pages than the old journal!

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boarder42

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Re: Progress for 20 something's
« Reply #118 on: September 05, 2016, 03:18:55 PM »
Just be aware that isn't your actual score.  Your real one is typically lower
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PerpetualWanderlust

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Re: Progress for 20 something's
« Reply #119 on: September 07, 2016, 10:15:16 AM »
25, single. I was laid off in 2015 and went almost 8 months without work. With that being said, I have about 120k in savings in total.

The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year. Also, I have a girlfriend who is pretty frugal, but it still forces me to pay for food/drive around whenever we hang out.

The positives: car is fully paid off and running well. I don't drink, and I don't belong to a gym. I live only 10 minutes from my job


VladTheImpaler

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Re: Progress for 20 something's
« Reply #120 on: September 07, 2016, 12:39:24 PM »

The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year.

$850/month doesn't seem like HCOL.
Is it a 1 bed or 2 bed apartment?
I'm assuming 1bed/1 bath?

I rent a 2/2 and split it with a really easy roommate.
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OvertheRainbow

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Re: Progress for 20 something's
« Reply #121 on: September 07, 2016, 10:38:39 PM »
Man, I feel like such a slacker in this thread.

Just turned 25 years old. Here are my stats as of today:

Roth IRA- approx 12k
403b- approx 7k
457b- approx. 1k
PERS- approx. 23k
Cash- approx. 23k
ETA a RMD: - approx. 4k
No debt, a seven year old Honda. No home either.

My goal is to have 150k in retirement by age thirty, preferably 200k. 43k down, 57k more to go!
« Last Edit: September 07, 2016, 10:48:16 PM by OvertheRainbow »

TheAnonOne

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Re: Progress for 20 something's
« Reply #122 on: September 13, 2016, 11:15:48 AM »
Man, I feel like such a slacker in this thread.

Just turned 25 years old. Here are my stats as of today:

Roth IRA- approx 12k
403b- approx 7k
457b- approx. 1k
PERS- approx. 23k
Cash- approx. 23k
ETA a RMD: - approx. 4k
No debt, a seven year old Honda. No home either.

My goal is to have 150k in retirement by age thirty, preferably 200k. 43k down, 57k more to go!

You have 66k in investments/cash already. Adding 84k to that in 5 years should be a cakewalk, that's only $16,800 a year or $1,400 a month. That's assuming you get no growth, dividends, inheritance, or windfalls in that time.

Yokan

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Re: Progress for 20 something's
« Reply #123 on: September 13, 2016, 03:04:22 PM »
It's really encouraging to see everyone on the same path. Currently 28, married:

Assets:
Cash $30k
Investments $313K
House: $126k (sales price less projected sales credits)

Liabilities
Credit Card current balances $2.2K

Networth
$466-467K

monstermonster

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Re: Progress for 20 something's
« Reply #124 on: September 15, 2016, 04:16:37 PM »
The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year.
Renting is a positive generally when it comes to mustachian net worth. Check out JCollinsNh's work on the subject.
Bikes, bowie, and business: using glitter to double my net worth by 30 the journal- with 40 less pages than the old journal!

<$25,000 income, 20% savings rate, traveling from Dublin > Shanghai by ferry/train this September.

My personal finance podcast for millennials (and those who love them)

catwoman106

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Re: Progress for 20 something's
« Reply #125 on: September 16, 2016, 01:13:39 PM »

Interesting how you can compare yourself to "real life" friends/peers and feel like a financial badass... then the minute you start comparing to some of the higher net worth people on this forum, you suddenly fall way behind the curve.

Perspective is a funny thing. Motivating as hell, though.

So true.

26 here as well, husband is 29.

Just finished paying off 50k of debt, mostly student loans. Live in HCOL area in CA.

401k - 31k
Roth IRA - 1k
Cash Savings - 6k
Investments - 25k

No debt, don't count cars as NW

Joint NW: 63k

No kids yet, but baby on the way.

Also - noticed, debt pay off and savings rate skyrocketed once married. Having a partner and being motivated together really helps. Easier to be accountable and to say no to outside parties. We're currently saving 70-80% after tax income. Discovered MMM last year.

Metric Mouse

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Re: Progress for 20 something's
« Reply #126 on: September 16, 2016, 03:42:28 PM »
The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year.
Renting is a positive generally when it comes to mustachian net worth. Check out JCollinsNh's work on the subject.

As often as this is repeated, it seems so few people know this fact. Even fewer seem to take it to heart, based on all of the 'pay off my house?' threads here...
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YogiKitti

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Re: Progress for 20 something's
« Reply #127 on: September 19, 2016, 01:47:31 AM »
Nice to see others doing so well!

Age: 23 married
NW: $110,000
debt: 0

In the next year we will quit our jobs, move so Mr. YK can start school, and I will start my career.

druth

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Re: Progress for 20 something's
« Reply #128 on: September 23, 2016, 03:19:04 PM »
Age 26

Good:
41k in investments
2k cash
180k Home value

Bad:
-9k Student Loans (2.75%!)
-156k Mortgage (4%+PMI)

NW: 58k
Started at -10k when I finished college 2 years ago, so I'm happy with my progress.  My boyfriend pays me rent right now which helps a lot, and I'm planning to get some rental properties going within the next couple years.  It definitely has helped me so far that we are in a good market and my house value went up by 7%(conservative estimate, Zillow says 9%!) since I bought it a year ago...  They are building a fancy ass soccer stadium near my house and demoing an old shopping mall into a new park/theater/fancy restaurants for the stadium so I expect this will only continue! yay!
« Last Edit: September 23, 2016, 03:26:53 PM by druth »

druth

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Re: Progress for 20 something's
« Reply #129 on: September 23, 2016, 03:39:40 PM »
The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year.
Renting is a positive generally when it comes to mustachian net worth. Check out JCollinsNh's work on the subject.

As often as this is repeated, it seems so few people know this fact. Even fewer seem to take it to heart, based on all of the 'pay off my house?' threads here...

I think it really depends on your market and lifestyle.

It's pretty easy to run the numbers and figure out what the most advantageous decision is.  I do think too many people just assume home buying is best without confirming their biases though.  It's certainly not a "fact" that renting is better though.
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

As an example, my NW is currently about 10k higher than it would be had I not bought a house just a year ago.

monstermonster

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Re: Progress for 20 something's
« Reply #130 on: September 24, 2016, 10:47:14 AM »
The negatives: I rent, and a pretty high cost place as well. Around 850 bucks a month, including utilities and Internet anservice basic cable. Was trigger shy on buying, considering I was laid off from my last job. Gonna rent for at least a year.
Renting is a positive generally when it comes to mustachian net worth. Check out JCollinsNh's work on the subject.

As often as this is repeated, it seems so few people know this fact. Even fewer seem to take it to heart, based on all of the 'pay off my house?' threads here...

I think it really depends on your market and lifestyle.

It's pretty easy to run the numbers and figure out what the most advantageous decision is.  I do think too many people just assume home buying is best without confirming their biases though.  It's certainly not a "fact" that renting is better though.
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

As an example, my NW is currently about 10k higher than it would be had I not bought a house just a year ago.
I of course agree that when it comes to any investment as narrow as a single structure on a single piece of land in a single neighborhood, personal finance is personal and there's no guarantees.

However, I'd recommend that $10K gain over a year isn't where the downsides of owning (repair, opportunity cost of that down payment in the market,  selling costs, mortgage interest payments, low liquidity) come into play - especially in an upward trend in the economy. You can't liquidate that net worth easily or use it to pay your expenses, and you can only realize that "gain" when you sell - by which the market may have changed and for which you will pay a substantial fee (or "expense ratio".) Your anecdote does not indicate a trend nor does it indicate, even for you, that long-term wealth will be primarily determined by owning your home. However, I hope that owning does make sense for you in the long-term.

Right now, the Rent Vs Buy calculator says I should Buy because my city's housing market has gone ape-shit and my rent has doubled in the past three years. However, the buying market is so hot and dominated by out-of-state cash buyers that I believe it currently defies the "buy low, sell high" rule. It's like everyone's already forgotten 2008.
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clarkfan1979

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Re: Progress for 20 something's
« Reply #131 on: September 24, 2016, 11:27:39 AM »
In a few years, when you want to move, instead of selling your house, try to hang onto the asset and rent it. It will make a huge difference on your net worth statement when you are 40.


Metric Mouse

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Re: Progress for 20 something's
« Reply #132 on: September 25, 2016, 07:53:43 AM »
In a few years, when you want to move, instead of selling your house, try to hang onto the asset and rent it. It will make a huge difference on your net worth statement when you are 40.

Yes. If one house is a poor choice, multiple houses is clearly the answer! :D  Because renting a house always makes money... MustacheMath!
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monstermonster

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Re: Progress for 20 something's
« Reply #133 on: September 25, 2016, 09:02:49 AM »
In a few years, when you want to move, instead of selling your house, try to hang onto the asset and rent it. It will make a huge difference on your net worth statement when you are 40.

Yes. If one house is a poor choice, multiple houses is clearly the answer! :D  Because renting a house always makes money... MustacheMath!
Oof. Owning rental homes has made a HUGE difference in the net worth of my SO, however, that was once he 1) had a lot of liquid cash assets because his business got sold and 2) because he bought the properties to rent out so he made the calculations for that, rather than for SFH.

 His "disaster house" is a house he unfortunately still owns and rents out. He bought when he was in college because "it made sense at the time" (this was 2007) between bad tenants, vacancy, repairs, being a remote landlord 1.5 hours away, a market that fell apart in CollegeTown, a property manager who ended up stopped fixing things or sending rent to him (that he's had to take to court), and the initial interest rates on the home, it's all been a disaster.

Buying a house for the qualities you want in a SFH is totally different than properties you are trying to make an income off of. There's very different calculations. Most people don't buy into a SFH by calculating the going rate in the local rental market and their buying process does not include the types of calculations you should do for a rental. If you are considering moving "up" (or even "down" since this is MMM) in house and renting out your owned house, make sure the house actually meets the criteria that you would follow to invest in the property on its own merits, not just based on the "sunk cost" of owning the home. Also decide if you really want the "not passive" income of owning properties - you need to be willing to take the cut on your investment (much higher than expense ratios) of a property manager, or have the skills, tools, and flexibility to handle maintenance, emergencies, and turnover for your property.

Landlording isn't for everyone and the people who lose at it are the people who don't go into it with their head on straight with the numbers.
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Metric Mouse

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Re: Progress for 20 something's
« Reply #134 on: September 25, 2016, 08:05:49 PM »
In a few years, when you want to move, instead of selling your house, try to hang onto the asset and rent it. It will make a huge difference on your net worth statement when you are 40.

Yes. If one house is a poor choice, multiple houses is clearly the answer! :D  Because renting a house always makes money... MustacheMath!
Oof. Owning rental homes has made a HUGE difference in the net worth of my SO, however, that was once he 1) had a lot of liquid cash assets because his business got sold and 2) because he bought the properties to rent out so he made the calculations for that, rather than for SFH.

 His "disaster house" is a house he unfortunately still owns and rents out. He bought when he was in college because "it made sense at the time" (this was 2007) between bad tenants, vacancy, repairs, being a remote landlord 1.5 hours away, a market that fell apart in CollegeTown, a property manager who ended up stopped fixing things or sending rent to him (that he's had to take to court), and the initial interest rates on the home, it's all been a disaster.

Buying a house for the qualities you want in a SFH is totally different than properties you are trying to make an income off of. There's very different calculations. Most people don't buy into a SFH by calculating the going rate in the local rental market and their buying process does not include the types of calculations you should do for a rental. If you are considering moving "up" (or even "down" since this is MMM) in house and renting out your owned house, make sure the house actually meets the criteria that you would follow to invest in the property on its own merits, not just based on the "sunk cost" of owning the home. Also decide if you really want the "not passive" income of owning properties - you need to be willing to take the cut on your investment (much higher than expense ratios) of a property manager, or have the skills, tools, and flexibility to handle maintenance, emergencies, and turnover for your property.

Landlording isn't for everyone and the people who lose at it are the people who don't go into it with their head on straight with the numbers.

Thank you for laying out both sides of the equations clearly. The mantra of 'rent out the current house', while popular, does require actual calculation to ensure it is economically wise.
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OvertheRainbow

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Re: Progress for 20 something's
« Reply #135 on: September 28, 2016, 09:09:57 PM »
Man, I feel like such a slacker in this thread.

Just turned 25 years old. Here are my stats as of today:

Roth IRA- approx 12k
403b- approx 7k
457b- approx. 1k
PERS- approx. 23k
Cash- approx. 23k
ETA a RMD: - approx. 4k
No debt, a seven year old Honda. No home either.

My goal is to have 150k in retirement by age thirty, preferably 200k. 43k down, 57k more to go!

You have 66k in investments/cash already. Adding 84k to that in 5 years should be a cakewalk, that's only $16,800 a year or $1,400 a month. That's assuming you get no growth, dividends, inheritance, or windfalls in that time.

I sure hope so. I usually don't like to count cash as I may end up using that in case of an emergency. I don't plan on touching Roth, 457 or 403b unless things are really dire.

nnls

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Re: Progress for 20 something's
« Reply #136 on: September 28, 2016, 10:35:32 PM »
Age 28 - Australian

Superannuation - $87000 (this is an Aussie retirement account cant access until i am 60)

Outside of super
Shares - $22000
Cash - $10000

Mortgages
Property 1 - $252000
Property 2 - $415000

Value of houses
Property 1 -$320000
Property 2 - $470000

No other debt.




Katsumi

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Re: Progress for 20 something's
« Reply #137 on: September 29, 2016, 02:57:40 PM »
27 here, married with one child and one dog, spouse does not work.

Assets:
$69,000 in retirement accounts
$32,000 in cash or equivalents ($11,000 is earmarked for ROTH's next year)
$180,000 Home value
Two vehicles - I do not count these in my NW calcs, although they are paid off and worth approximately $25k combined

Liabilities:
$102,000 Mortgage @ 3%

NW: $179,000, not including car values.

 Not quite where I would like to be, and, reading through some of these posts I feel like I have some catching-up to do!

adizb

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Re: Progress for 20 something's
« Reply #138 on: September 29, 2016, 07:01:20 PM »
Haha and i thought i was doing ok.... I started saving less than two years ago,  right around the time i bought a brand new car. Yes.... and despite all the advice around me not to do it i honestly saw nothing wrong with it. Then, when i had seemingly all i wanted, i started to wonder what to do with the money next. After some more  bla bla bla i finally found this awesome community and MMM.

Started saving instead of spending  and here's how it looks.

Im 28, single with annual income of ~55k


Cash: ~4.5k (sold some stocks to finally pay off the car)

401k: ~15k (on track to max it )

tIRA:  ~5.6k

Debt: ~3k (car)



I noticed im gaining about 3k a month, currently sitting around 22k NW. Its funny if i think about it, its like ive been pulled out of the matrix. Oblivious to the fact there was another world out there. Now that ive found it i thought i was Neo, you know the one, but after reading all previous replies i realize im just a scrubby side character. As depressing as it sounds im still happy where im heading though =)

VladTheImpaler

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Re: Progress for 20 something's
« Reply #139 on: September 29, 2016, 07:19:46 PM »
Haha and i thought i was doing ok.... I started saving less than two years ago,  right around the time i bought a brand new car. Yes.... and despite all the advice around me not to do it i honestly saw nothing wrong with it. Then, when i had seemingly all i wanted, i started to wonder what to do with the money next. After some more  bla bla bla i finally found this awesome community and MMM.

Started saving instead of spending  and here's how it looks.

Im 28, single with annual income of ~55k


Cash: ~4.5k (sold some stocks to finally pay off the car)

401k: ~15k (on track to max it )

tIRA:  ~5.6k

Debt: ~3k (car)



I noticed im gaining about 3k a month, currently sitting around 22k NW. Its funny if i think about it, its like ive been pulled out of the matrix. Oblivious to the fact there was another world out there. Now that ive found it i thought i was Neo, you know the one, but after reading all previous replies i realize im just a scrubby side character. As depressing as it sounds im still happy where im heading though =)
I love your sense of humor about it.
Some Mustachians, act like they have never made any mistakes...especially the young ones lol. (It can get nauseating after a while).
Your experience about feeling like Neo coming out of the matrix mirrors my own.
Kudos! Keep it up man.
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boarder42

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Re: Progress for 20 something's
« Reply #140 on: September 30, 2016, 08:05:28 AM »
Haha and i thought i was doing ok.... I started saving less than two years ago,  right around the time i bought a brand new car. Yes.... and despite all the advice around me not to do it i honestly saw nothing wrong with it. Then, when i had seemingly all i wanted, i started to wonder what to do with the money next. After some more  bla bla bla i finally found this awesome community and MMM.

Started saving instead of spending  and here's how it looks.

Im 28, single with annual income of ~55k


Cash: ~4.5k (sold some stocks to finally pay off the car)

401k: ~15k (on track to max it )

tIRA:  ~5.6k

Debt: ~3k (car)



I noticed im gaining about 3k a month, currently sitting around 22k NW. Its funny if i think about it, its like ive been pulled out of the matrix. Oblivious to the fact there was another world out there. Now that ive found it i thought i was Neo, you know the one, but after reading all previous replies i realize im just a scrubby side character. As depressing as it sounds im still happy where im heading though =)
I love your sense of humor about it.
Some Mustachians, act like they have never made any mistakes...especially the young ones lol. (It can get nauseating after a while).
Your experience about feeling like Neo coming out of the matrix mirrors my own.
Kudos! Keep it up man.

if i laid out what we owned on here i'd get banned that said we're going to work around 13 long years to be able to afford it all forever.
PM me about how to save 6% on your annual grocery Bill!

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akzidenz

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Re: Progress for 20 something's
« Reply #141 on: October 02, 2016, 12:19:34 AM »
this is both intimidating and inspiring. it's cool to see where you guys are (i'm younger than everyone that's posted so far) and i hope to be in a similar boat in a few years

22, single, just started working

401k$4k
roth IRA$10k
emergency fund$3k
debt$0
net worth$17k

here's where i am four months later:

401k$12.5k(+$8.5k)
roth IRA$12.5k(+$2.5k)
emergency fund$9.5k(+$6.5k)
taxable investments$3k(new)
debt$0
net worth$37.5k(+$20.5k)

i'm averaging a 69% savings rate month-to-month, which feels good but i want to do better. i'm living at home right now and so have 0 rent costs, but there are so many gaping holes and unnecessary expenses in my budget that i could cut down (no rent but i'm still spending $2k a month??? i'm pretty ashamed to own up to it)

MrMath

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Re: Progress for 20 something's
« Reply #142 on: October 02, 2016, 12:58:42 AM »
Just got a job as a math teacher!
Age:24
Here are my stats so far:
Roth IRA: 16,400
457b: 500
403b: 3200
Taxable Brokerage: 5100
Savings Account: 2000
Gold: 3 oz (around 4000)
Debt: -6500 (student loans that will be forgiven by teaching 5 yrs)

Net Worth: 24.200
Deducting 18k year in 403, 5500 in 457 and 8k in pension. If I have money left will move to Roth. Still figuring out my livable wage. Gross 48K.
Advice?


« Last Edit: October 02, 2016, 01:00:57 AM by MrMath »

Derrian

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Re: Progress for 20 something's
« Reply #143 on: October 02, 2016, 07:39:10 AM »
If you are looking to retire early, I would look into maxing your 457 as those funds can be used at any time (after separating from your employer) without a tax penalty, unlike a 403b or traditional IRA.

boarder42

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Re: Progress for 20 something's
« Reply #144 on: November 15, 2016, 06:16:02 AM »
well i was hoping to exit this thread at 400k invested.  i will be exiting at 398.4k invested total NW at 541k. as today i turned 30.  7years til FI!!
PM me about how to save 6% on your annual grocery Bill!

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Saskatchewstachian

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Re: Progress for 20 something's
« Reply #145 on: November 15, 2016, 06:57:24 AM »
Ou a thread I can contribute to! Let me just pull up my tracking spreadsheet to grab the numbers!

DW and I are 25y.o. DINK's living in a HCOL area. Although I think most of Canada would be considered HCOL vs the states (although that's a debate for another thread)

Gross Income ~240k but due to very high taxes this works out to ~11k/month
Cash - 10k
Invested 100k
Home - 380k
Mortgage - (287k at 2.89%)
Debt (car at 0%) - (2.7k)

Total NW - 200k

DW and I only found MMM about 6 month ago and since then have boosted out savings rate over 50%. This year alone we are on track to add 84k to our NW (not counting investment returns). This large income is unfortunately temporary as long as I am working away and will drop in a year. Our current plan has us at a 600k NW at 30 and 1.25M by 35 and retire at 40 with ~2M. Who knows what will all happen between now and then though but for the time being we are laying the foundation by plowing about 7-8k per month in the NW and all of this while paying cash for DW's Master's over 2 years (about 20k).

« Last Edit: November 15, 2016, 07:21:58 AM by Saskatchewstachian »

2Birds1Stone

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Re: Progress for 20 something's
« Reply #146 on: November 15, 2016, 07:21:27 AM »
Mr. 2B1S - 29
Mrs. 2B1S - 25

Combined Net Worth - ~$250k
Combined Income - ~$200k projected for 2016

We both work in sales, when we first started dating in 2011 we made $56k/yr, by 2014 $70k/yr, 2015 $140k/yr, this year projected $200k+

5 months and ~$50k later we are sitting at $300k net worth combined. Still 29/25 years old respectively.

"A small house can hold as much happiness as a big one." - Fortune Cookie

33 Months till FIRE - Stop by, or stay a while.....
https://forum.mrmoneymustache.com/journals/fire-by-thirty-five-chronicles-36-months-till-sabbatical!/

Supernumerary

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Re: Progress for 20 something's
« Reply #147 on: November 22, 2016, 12:37:08 AM »
Nice thread. Great to get some perspective on how others in a similar situation are doing.

Me and my GF are just starting out. We are 27 and 26 respectively, both newly graduated engineers within Industrial Design and Product Development. Found this site a few years ago, but the mindset has been with us from before, although reading here has strengthened us.

We are just starting out at our entry level jobs as engineers, and as such are both expecting an increase in income of about 10% within 6-12 months.

The details:

Combined Income: $80k/yr
Combined Investments: $39k
Combined Retirement Accounts: $14k
Apartment Value: $409k

Mortgage: $297k @ 0.82% interest
Additional Loan: $49k @ 0.82% interest
Combined Student Loans: $83k @ 0.6% interest

The additional loan was needed in order to be able to buy instead of rent. The market where we live is balanced in a way that heavily benefits buying over renting, and the cost of owning, including mortgage costs, is just about half that of renting.

This all results in a combined NW of $34k, which we are happy for seeing as we are both just emerging from university. It's difficult to assess how we are performing so far, but it seems we are maintaining right around 65% SR.
« Last Edit: November 22, 2016, 03:24:06 AM by Supernumerary »

LuxuryIsADrug

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Re: Progress for 20 something's
« Reply #148 on: November 22, 2016, 02:05:12 AM »
Canadian. 27, male, single.

Debt: -$35,500 @ 5.1%
Investments: $24,000

NW: -$11,500

happychineseboy

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Re: Progress for 20 something's
« Reply #149 on: November 22, 2016, 08:13:53 AM »
26 y/o. I have been working full time for 3 years since 23. Student loans blasted a 28K crater in my NW but I finished paying that off within a year of finishing school.

IRA - 20K
Cash - 25K
Robinhood (stocks)- 15K
Old 401k - 7K (I left before the full 5/6 year vesting period so I only got to keep 20% of company match)
Current 401k - 12K
ESPP - 9K

NW - 88K

I'm going to keep car and house out of my NW calculation.
Going forward I will be putting a lot less money into my Robinhood account and more into my 401K.

I have been maxing out IRA every year since graduation and I hope to continue that tradition.
I am currently contributing 40% to my 401k so I can max it out for 2016. Next year I will continue to max out my 401k.

Hoping to reach $200K by 30!