Author Topic: New with lots of questions (Update - climbing out of poverty)  (Read 18533 times)

mommymustachian

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Re: New with lots of questions (Update)
« Reply #50 on: November 18, 2018, 08:31:05 AM »
Thank you so much, Fire 20/20! I have been so inspired by the users in this forum. Very appreciative of this community.

My expenses are lower now than they were in 2016 and I've adopted a lot of frugal habits to ensure I don't succumb to lifestyle inflation as my salary grows. I've taken my lunch to work every single day of 2018 thus far for example.

mommymustachian

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Re: New with lots of questions (Update)
« Reply #51 on: December 06, 2018, 09:23:03 PM »
Holy sh*t, I received an offer of $210 base - that is $110 over what I make in base now. The bonus is discretionary, so I honestly can't say what I'd make all in. Health insurance is covered 100% for the employee - I'd have to pay for me kids. 401k is offered but no match. I currently get a 4% match. I'm weighing up my options but I'm leaning towards taking the offer.

Freedomin5

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Re: New with lots of questions (Update)
« Reply #52 on: December 06, 2018, 11:32:36 PM »
That's awesome! Don't succumb to lifestyle inflation. Keep your spending at your current levels (or lower), and you'll be FI in no time!

GettingClose

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Re: New with lots of questions (Update)
« Reply #53 on: December 07, 2018, 10:21:58 AM »
Good for you!  You've really turned things around, and I'm sure it's taken a lot of hard work and discipline.

Ecky

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Re: New with lots of questions (Update)
« Reply #54 on: December 08, 2018, 04:19:07 AM »
Congrats! You're doing fantastic.

mommymustachian

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Re: New with lots of questions (Update)
« Reply #55 on: December 08, 2018, 09:39:56 AM »
Thank you all. I've worked my butt off these past few years and it's nice to see it start to pay off. I knew there weren't many areas for reducing my spending so optimizing my budget was never going to get me to FIRE. Instead I've aimed to maximize my earnings.
All extra income will be diverted to investments and savings. I'm looking into backdoor roth too.

mommymustachian

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Re: New with lots of questions (Update)
« Reply #56 on: December 28, 2018, 10:21:04 AM »
I ended up getting the job I was recruited for. I'll start in Feb to ensure I get paid all my commissions I earned in November and December (~40k).
New base salary is $210k compared to my current $100. Insane! I negotiated to get to that level and offset the lack of 401k match and 3 months without health insurance. Safe to say 2018 was good to me!

snacky

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Re: New with lots of questions (Update)
« Reply #57 on: December 28, 2018, 10:53:21 AM »
Your progress is mindblowing. Well done! What is your long term goal? Do you want to retire ASAP or something else?

mommymustachian

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Re: New with lots of questions (Update)
« Reply #58 on: December 28, 2018, 11:59:09 AM »
Thank you! My ultimate goal is to be financially independent. I was living paycheck to paycheck, struggling to make ends meet a few years ago and desperately wanted stability. Retiring early isn't a priority because I get a lot of satisfaction from my job but having enough money to say F this if that should ever change would be nice.

snacky

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Re: New with lots of questions (Update)
« Reply #59 on: December 28, 2018, 12:25:40 PM »
I get that. It helps me sleep at night, knowing that I matter what happens I won't end up homeless or hungry.

iluvzbeach

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Re: New with lots of questions (Update)
« Reply #60 on: December 28, 2018, 03:30:44 PM »
Posting to follow.

Today is the first time I've seen your thread, but am inspired by the progress you've made and wish to continue reading along as you move onward and upward.  Congrats!

mommymustachian

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Re: New with lots of questions (Update)
« Reply #61 on: May 01, 2019, 01:25:06 PM »
I'm stuck at an airport so making use of the time by posting an update here.

When I told my employer about the job offer they made me  competing offer so I ended up staying and my expected comp this year should be $333k if I hit all my targets.

I have $30k in cash right now but will slowly reduce this as I feel a lot more financially stable and have access to about $100k in credit thanks to gradually repairing my credit.

My assets crossed the $200k milestone as of today, $203k to be exact. $143k in investments ($80k in Vanguard 100% VTSAX) and $63k in 401k. On target to Max out the 401k and Roth again this year.

I bought a used car in Feb (2016 Camry) paid in full and will drive it until the wheels fall off.

mommymustachian

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Re: New with lots of questions (Update)
« Reply #62 on: May 01, 2019, 01:47:25 PM »
Oh and 2 days after my last post my partner proposed and I said yes. 2018 was a good year!

snacky

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #63 on: May 01, 2019, 07:23:02 PM »
Well done!

formerlydivorcedmom

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #64 on: May 02, 2019, 12:30:29 PM »
It's amazing how far you've come in 4 years.  Congratulations!

mommymustachian

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #65 on: August 09, 2019, 02:23:54 PM »
Quick update:

Assets

401k - 75k (about to max it for 2nd year in a row)
Vanguard VTSAX - 100k
Emergency Fund 27.5k
2016 Toyota Camry - 11k
Savings - 15k

No debts currently.

My lease is up next June and I really want to buy but scared to become house poor. I think now my oxygen mask is securely on I can start 529 plans for the kids.

I may be a little cash heavy but it helps me sleep at night.

Still on pace to make 333k this year despite a disappointing Q1.

I am figuring out if and how to combine finances with my fiance. Last marriage left me scarred and though I have no reason to worry this time I feel more at ease keeping things separate for now.


GizmoTX

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #66 on: August 09, 2019, 02:36:52 PM »
Wait until youíre married to combine finances. Meanwhile, make sure itís a good fit.
Congratulations!

Chrissy

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #67 on: August 09, 2019, 09:51:33 PM »
Well done, @mommymustachian .

Didn't you have a ROTH?  Where's that in your asset list?  Also, see if you can do after-tax contributions to your 401k at work AND, now that your income is too high, backdoor your ROTH (we did it this year, it's super easy).  See the Investment Order on the Investor Alley section of the forum.

You could absolutely buy a house now, but you could also wait a year and build up a fat down payment.

529s:  YES.

Regarding combing finances, just do what makes you comfortable; you can always change things later.  My husband and I haven't combined finances at all!  We "coordinate" finances once a month, and talk frequently about our financial goals.

Catbert

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #68 on: August 10, 2019, 10:49:05 AM »
Don't combine finances until you're married.  However, if you're living together maybe have a joint account to cover routine household expenses (e.g. rent, food, utilities).

P.S.  Congrats on all the progress!

mommymustachian

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #69 on: August 11, 2019, 09:59:58 AM »
Well done, @mommymustachian .

Didn't you have a ROTH?  Where's that in your asset list?  Also, see if you can do after-tax contributions to your 401k at work AND, now that your income is too high, backdoor your ROTH (we did it this year, it's super easy).  See the Investment Order on the Investor Alley section of the forum.

You could absolutely buy a house now, but you could also wait a year and build up a fat down payment.

529s:  YES.

Regarding combing finances, just do what makes you comfortable; you can always change things later.  My husband and I haven't combined finances at all!  We "coordinate" finances once a month, and talk frequently about our financial goals.

Thanks Chrissy. Yes, you're correct about the ROTH. I ommitted that ans my cryptocurrency balances and they're not very significant. I am going to contribute to a backdoor ROTH.

I do have access to after tax 401k through work. I don't think there's a match on that
 How much of my income should be going there?


Chrissy

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #70 on: August 11, 2019, 11:41:18 AM »
No, there wouldn't be a match on the after-tax contributions, and the max you can put in your 401k is $56,000 INCLUDING THE EMPLOYER MATCH.  See here for more details:

https://www.doughroller.net/retirement-planning/pros-and-cons-of-after-tax-401k-contributions/

https://www.madfientist.com/after-tax-contributions/

The key takeaway is that you can roll these contributions--not the earnings--to a ROTH when you separate from the employer or once a year through in-service distributions if your 401k allows that (which allows the gains to be tax-sheltered too!).  The pre-tax contributions, match money, and earnings can all be rolled to a new employer 401k or tIRA at retirement.


Freedomin5

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #71 on: August 11, 2019, 04:20:32 PM »
Wait until youíre married to combine finances. Meanwhile, make sure itís a good fit.
Congratulations!

Yes, this! Donít combine finances just yet, but definitely start talking about finances. You donít want a spendy spouse to undo all your hard work!

mommymustachian

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #72 on: May 06, 2021, 03:56:32 PM »
Wow almost 2 years since I updated this. Since then we've had a global pandemic and I changed jobs. Divorce has been almost been finalized and I'll be getting child support. Exact amount TBD and will need to figure out what to do with it.
Fiance and I purchased a 2 bed/2 bath vacation/rental property in a resort community in cash under a legal entity as 50% co-owners. Still under construction but expect that once completed it should pay it's own expenses and net us a profit of 12.5k a year, while we use it most of the time as remote working allows us.

The goal is to make it our primary residence in the next two years which will cut our expenses by over 50% due to LCOL and eliminating rent. If all goes to plan it should drastically speed up my FIRE timeline.

Inching close to the 500k net worth which I hope to achieve by December.

Assets

Rollover 401k - 133k
New Job 401k - 12k
Mega backdoor Roth- 17k
Vanguard brokerage - 186k
Emergency Fund 36k
2016 Toyota Camry - 10k
Misc Assets - 23.5k
Investment property - 83k (just my half)

Debt - 39k (just my half) balance due upon delivery of property, interest free

Chrissy

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #73 on: May 06, 2021, 06:29:06 PM »
OUTSTANDING.  Well done!

Did you end up doing the 529s?  My kiddos are 3yrs and 5yrs.  We put in $20k at age 0-1 and $20k at age 1-2 for a total of $40k per kid, and invested in mutual funds.  Right now, they're at $68k and $72k, on their way to ~$180k by college (unless we decide to contribute more). 

I really like 529s... In our case, the contributions were tax-advantaged.  They'll pay for tuition, fees, books, a computer and internet service, equipment, living expenses, grad school, trade school, community college, study abroad, code bootcamp through a university, etc. lots of options.  Depending on the state, they might even pay $10k/yr toward private elementary or high school.  And, they can pass to grandchildren.

That was a long-ass divorce.  Congratulations being through it and best of luck moving forward.

mommymustachian

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #74 on: May 07, 2021, 12:34:29 PM »
OUTSTANDING.  Well done!

Did you end up doing the 529s?  My kiddos are 3yrs and 5yrs.  We put in $20k at age 0-1 and $20k at age 1-2 for a total of $40k per kid, and invested in mutual funds.  Right now, they're at $68k and $72k, on their way to ~$180k by college (unless we decide to contribute more). 

I really like 529s... In our case, the contributions were tax-advantaged.  They'll pay for tuition, fees, books, a computer and internet service, equipment, living expenses, grad school, trade school, community college, study abroad, code bootcamp through a university, etc. lots of options.  Depending on the state, they might even pay $10k/yr toward private elementary or high school.  And, they can pass to grandchildren.

That was a long-ass divorce.  Congratulations being through it and best of luck moving forward.

Thank you, Christy. Yes and insanely long and divorce process. It turned into am ugly custody battle and had to go all the way to trial. I think in one of my first posts I said I expected it to be amicable. HA!

I did open 529s for both kids. Didn't include it here because, like my partners assets, I don't consider it part of my net worth.
Amazing that you've already set up your children for college before they can even read. Great job!

mommymustachian

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #75 on: August 27, 2021, 04:33:44 PM »
Hit a milestone today of half a million net worth - $505k to be exact, with $415k of that in the market. It's taken about 6 years to get to this point.
I'm hoping now the magic of compound interest will help me reach my goals faster.

Chrissy

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Re: New with lots of questions (Update - climbing out of poverty)
« Reply #76 on: August 27, 2021, 10:29:00 PM »
It will!  Congratulations.