Author Topic: advice for a big family  (Read 1307 times)

eli44

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advice for a big family
« on: December 09, 2018, 06:46:08 AM »
Hello,
We are a family of 6. Two Adults and 4 Children. We make about 200K. We are nearing our mid 30s. We have zero debt, no motgage as we rent. We have about 40k in the bank and we have matched our 401k earnings. What should we do with our money in the bank. Our monthly expense is 4k because of high rent. We thought about buying a house but prices are up the roof and we do not want debt. We just learned about early retirement and about Mr. Money Mustache. We have about 10k in Crypto Currency invested we have no other investments. Can you please give me your advice on what I should Invest in if I want to retire in ten years?


Chrissy

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Re: advice for a big family
« Reply #1 on: December 09, 2018, 07:15:31 AM »
The $40k in the bank is your emergency fund.  Don't do anything with it.  If you're comfortable with a 6mo EF rather than a 10mo EF, then go ahead and invest $16k of it.

Follow the Investment Order:  https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Read the Stock Series:  https://jlcollinsnh.com/stock-series/

Dicey

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Re: advice for a big family
« Reply #2 on: December 09, 2018, 07:20:11 AM »
- Read the blog from end to end.
- Read the forum voraciously.
- Read jlcollinsnh's Stock Series: https://jlcollinsnh.com/stock-series/
- Start a Case Study here: https://forum.mrmoneymustache.com/case-studies/

Do this in no particular order. Starting with a Case Study is a fine option, but mostly just get started.

Bonus tips for daily frugal inspiration:
- Read/follow "The Frugal Girl" at www.thefrugalgirl.com
- Read/follow "The Non-Consumer Advocate" at http://thenonconsumeradvocate.com

With your income, you're going to be amazed at how fast things start growing once you sharpen your focus. You can do this!
« Last Edit: December 09, 2018, 10:25:01 PM by Dicey »

use2betrix

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Re: advice for a big family
« Reply #3 on: December 09, 2018, 03:36:18 PM »
With a salary of $200k and a monthly expense of $4k, where’s the rest? Seems like you should have a lot more saved for that low of spending and that much earning.

nereo

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Re: advice for a big family
« Reply #4 on: December 10, 2018, 05:59:24 AM »
With a salary of $200k and a monthly expense of $4k, where’s the rest? Seems like you should have a lot more saved for that low of spending and that much earning.
I was wondering this too... poster mentioned maxing out their 401(k)s, but said nothing about other investment accounts.

In generally I'd follow Dicey and Chrissy's suggestions (above)- but more information is needed.

Freedomin5

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Re: advice for a big family
« Reply #5 on: December 10, 2018, 08:27:17 AM »
Poster MATCHED their 401k (I’m assuming just putting in enough to get the full employer match), when they should actually be MAXING their 401k.

But I would say, start with Dicey’s suggestions. Figure out where the rest of that income is going. And also read the Investment Order post on the forums.

AMandM

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Re: advice for a big family
« Reply #6 on: December 10, 2018, 02:08:50 PM »
Congrats from a fellow big family!

1. Start tracking your expenses if you don't already. Until you know where your money is going, you can't know how effective you're being.

2. If you are making $200k and not saving much more than your 401k match, you're spending too much. Decide whether you are willing to change your behavior (i.e., develop new habits) to reduce your spending. It will take effort, but it doesn't have to mean deprivation; the new lower-spending habits should bring as much joy as the old expensive ones, if not more.

3. Notwithstanding #1, there are things you can do immediately that are almost certain to save you money.  Make food and drinks at home instead of eating out or buying it premade. Drive less (combine trips, eliminate trips, bicycle or walk).  Stay away from shopping as entertainment.  Speaking of entertainment, use what you have (books, videos, music, games) or what you can get for free (borrow from library, free local shows/concerts) instead of buying or renting new ones.  Wear the clothes you have.  Turn off lights. Reduce your thermostat.

4. For more ideas on saving money, read the MMM blog and the blogs others listed here and the forum. There are threads about grocey bills, there's al large-family thread in the Mini-MMM section, there's a ton of DIY advice, etc. For personalized advice on where you can save more, post a case study.

5. Congrats again!  You are still young and you have a high income, so you should have no trouble reaching FIRE if that's what you want.

nereo

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Re: advice for a big family
« Reply #7 on: December 10, 2018, 02:15:02 PM »
I missed it - what are we congratulating?

ysette9

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Re: advice for a big family
« Reply #8 on: December 10, 2018, 10:23:51 PM »
I missed it - what are we congratulating?
Congrats on your fertility? :)

Dicey

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Re: advice for a big family
« Reply #9 on: December 11, 2018, 01:15:50 AM »
I missed it - what are we congratulating?
Congrats on your fertility? :)
Congratulations on your big...income? :)

slappy

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Re: advice for a big family
« Reply #10 on: December 11, 2018, 05:56:07 AM »
I missed it - what are we congratulating?

I think it's the high income. Maybe it's the finding MMM.