The Money Mustache Community

General Discussion => Throw Down the Gauntlet => Topic started by: passiveKonnoisseur on October 07, 2015, 05:58:43 PM

Title: Saving in your 20's
Post by: passiveKonnoisseur on October 07, 2015, 05:58:43 PM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Savings rate: Around 57% for the few months that we have been married
Job: $16.50/hr
Website/blog (http://passivekonnoisseur.com) making a measly $30/mo but is steadily rising.
Student with two and a half years left in school.


Goal $50,000 when I finish school in 2018.
Title: Re: Saving in your 20's
Post by: aetherie on October 08, 2015, 07:04:23 AM
Welcome to the forums! I'm also 23. Done with school and working as a software engineer. Still working on defining my goals, but I should be on track for FI by age 30.

I'm not sure being part of a challenge group, especially one with such vague parameters, would be helpful for me personally, but I wanted to let you know you're not alone here in your age group. Best of luck to you! :)
Title: Re: Saving in your 20's
Post by: passiveKonnoisseur on October 08, 2015, 09:58:31 AM
Awesome. What would you think is a goal that we could work towards? Would it be more short term (1 year) or long term (time until FI)?
Title: Re: Saving in your 20's
Post by: jasminegeekface on October 23, 2015, 07:50:44 AM
I'll jump in here! I'm 22 and I've been at my first full time job as a systems engineer for a little over a year now. My goal is to reach a $50k net worth by the end of the year. So far I've hit $43k.

Good luck to you! :)
Title: Re: Saving in your 20's
Post by: southernhippie on October 23, 2015, 07:58:53 AM
I am in.  I am 27 been working full time for 5 years now.  I am trying to go back to school full time.  So I will lose income for two years and accumulate some student debt.  But when I am done with school I will be able to triple my salary.  So it puts my at a FI goal t 35
Title: Re: Saving in your 20's
Post by: monstermonster on October 24, 2015, 01:27:27 PM
I'd love to join in. I'm 28 and my short-term goal is to get to 10K networth (should be there by May 2016), and my medium-term goal is 100K networth by 2022 (or age 35). I don't have a specific FI goal date as I don't want to quit working, but 50% savings rate is my steadfast.
Title: Re: Saving in your 20's
Post by: eyePod on October 26, 2015, 09:12:39 AM
Good for you guys. I start saving until I was out of college. I came out with about 25k in debt and that's all gone. We own a house now and in the past 3 years have almost put away 150k including our principal for our mortgage. You can do it too!

P.S. Kids slow down savings. They're awesome but they just cost money. FI target for me is 40 at the earliest.
Title: Re: Saving in your 20's
Post by: Cromacster on October 26, 2015, 09:50:49 AM
Currently 28 and married.  Combined we have about 210k in invested assets.  Our goal is to have over 300k invested by the time we are 30.

With a conservative projection we will hit this number by August of 2017.  I turn 30 in March 2017, so my goal is to hit 300k before then. Gauntlet down.
Title: Re: Saving in your 20's
Post by: YoungGranny on October 26, 2015, 01:34:39 PM
I'm currently 25 and my net worth just popped over $100k. For a pretty large challenge I'm going to aim for $250k by the time I'm 28 That's ~$50k a year and I'm currently saving closer to $30k. It'll definitely be a challenge but knowing I have a few raises coming in the next year + trying to live a more mustachian lifestyle it's worth a shot :)
Title: Re: Saving in your 20's
Post by: mrteacher on October 26, 2015, 02:10:33 PM
I love hearing from other 20somethings regarding saving, networth, etc, as most of my 20something friends are not concerned with such matters.

I am 26 and at the doorstep of $100k networth (should end October just under $90k) and should cross that threshold sometime in March, April, or May of 2016. Then, on to $250k! I could hit $250k around 32-33, given my back of the napkin calculations.

I've been preaching MMM to my girlfriend, and she has been working on frugality and boosting her own savings rate. She's about to hit $10k networth!

Although I discovered MMM a few months ago, my savings rate and outlook on saving and a spending has MMM-esque for several years. I am however, not driven as much by the prospect of early retirement as I am financial independence, as I genuinely like my job, the work-life balance, and the people with whom I work. So, I embrace frugality and work to boost my savings rate as a way to accumulate so that I have options and security.

This is a cool thread idea; I'm looking forward to hearing from other 20somethings!
Title: Re: Saving in your 20's
Post by: Rodgers12 on October 27, 2015, 08:43:08 AM
I am going to hop in as well. I like hearing from people close to my age to compare how well I am doing. I am a 26 year old male sitting with about $38k net worth. Paid off all my student loans in qtr 1 of this year so since then I have been adding about $1500-$2k per month to my net worth. My rough estimates have me projected at 100k net worth around age 29, which is a personal goal I hope to accomplish.

Compared to all my close friends in the area I am leaps and bounds a head of them so unless one of them asks advice I tend not to chime in or comment on finances. It seems like everyone my age could care less about savings/FIRE/Net worth. However, I do have one buddy I talk finances with monthly, motivating each other to keep savings and or paying of student loans as much as possible. We both share our net worth every few months to keep pushing each other. He had about 30k more in student loan debt than I but he is soon to be married so with that dual income I am sure his stash will soon catch up to mine. 
Title: Re: Saving in your 20's
Post by: VTD0918 on October 27, 2015, 08:33:37 PM
Hello everyone! I started to get serious with saving this year in May. I am 28 years old with a NW of $117k with no debt.  Hope to hit 175k by the end of 2016. I don't own a home so what you see there is all from my taxable and tax deferred accounts. I only disclose my financials and my FIRE plans to my best friend but not to others since people will think I'm crazy for trying to RE at 43. I try to educate my other bff to max out her 401k and pay off her loans but she rather save the money in the bank so she makes the min payments to her bills. Through my work,  I am able to contribute both to the 401k and 457 which I max out. That is $36k a year. When asked by a coworker how much I contribute each month, I told her I do $1500 to each account. We both make the same amount of money. She looked at me crazy! Haha!! She doesn't know how I survive. Being frugal was my answer!
Title: Re: Saving in your 20's
Post by: monstermonster on October 28, 2015, 09:09:01 AM
Through my work,  I am able to contribute both to the 401k and 457 which I max out. That is $36k a year. When asked by a coworker how much I contribute each month, I told her I do $1500 to each account. We both make the same amount of money.

How much do you make that you're able to save that much 0_0? That's more than my annual income! Awesome job, congrats!
Title: Re: Saving in your 20's
Post by: 2Birds1Stone on October 28, 2015, 11:16:46 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions

This would put me at $175k in investments at age 29 :)
Title: Re: Saving in your 20's
Post by: zephyr911 on October 28, 2015, 11:18:03 AM
I'm currently 25 and my net worth just popped over $100k. For a pretty large challenge I'm going to aim for $250k by the time I'm 28 That's ~$50k a year and I'm currently saving closer to $30k. It'll definitely be a challenge but knowing I have a few raises coming in the next year + trying to live a more mustachian lifestyle it's worth a shot :)
You can always hope for enough investment returns to make up the difference ;)
Title: Re: Saving in your 20's
Post by: VTD0918 on October 28, 2015, 03:23:33 PM
Through my work,  I am able to contribute both to the 401k and 457 which I max out. That is $36k a year. When asked by a coworker how much I contribute each month, I told her I do $1500 to each account. We both make the same amount of money.

How much do you make that you're able to save that much 0_0? That's more than my annual income! Awesome job, congrats!

Thank you! I make 56k a year and will receive a 5% increase for the next 5 years. I failed to mention I am able to save so much because we live off of my fiancé's income which is not much but enough. He makes less than half of what I make but we still live a comfortable life.  So we save my income and spend his.
Title: Re: Saving in your 20's
Post by: FIRE_Buckeye on October 28, 2015, 06:36:28 PM
Great thread
I'm just a hair under 40k net worth at age 26. Conservative goal is obtaining a net worth of 100k by age 30. It's encouraging seeing so many ITT doing so well at such a young age.
Title: Re: Saving in your 20's
Post by: YoungGranny on October 29, 2015, 06:59:37 AM
I'm currently 25 and my net worth just popped over $100k. For a pretty large challenge I'm going to aim for $250k by the time I'm 28 That's ~$50k a year and I'm currently saving closer to $30k. It'll definitely be a challenge but knowing I have a few raises coming in the next year + trying to live a more mustachian lifestyle it's worth a shot :)
You can always hope for enough investment returns to make up the difference ;)

I'm sure it'll make up some but not enough. I think learning to be a bit more disciplined and really starting to flex my mustachian muscles should make up the difference though :)
Title: Re: Saving in your 20's
Post by: makane on October 31, 2015, 01:42:59 PM
Through my work,  I am able to contribute both to the 401k and 457 which I max out. That is $36k a year. When asked by a coworker how much I contribute each month, I told her I do $1500 to each account. We both make the same amount of money.

How much do you make that you're able to save that much 0_0? That's more than my annual income! Awesome job, congrats!

@monstermonster I'm guessing that your income, just like mine, is on the low end of the spectrum of this website. I make €1,900 per month. So for us building a stache goes a lot slower than for a lot of the others on mrmoneymustache.
Saving a lot is nice (and I do save most of my income), but still for the lower earners on this forum I think it's best if we focus on getting a higher paycheck as soon as possible.
Title: Re: Saving in your 20's
Post by: monstermonster on November 01, 2015, 01:02:29 PM
Through my work,  I am able to contribute both to the 401k and 457 which I max out. That is $36k a year. When asked by a coworker how much I contribute each month, I told her I do $1500 to each account. We both make the same amount of money.

How much do you make that you're able to save that much 0_0? That's more than my annual income! Awesome job, congrats!

@monstermonster I'm guessing that your income, just like mine, is on the low end of the spectrum of this website. I make €1,900 per month. So for us building a stache goes a lot slower than for a lot of the others on mrmoneymustache.
Saving a lot is nice (and I do save most of my income), but still for the lower earners on this forum I think it's best if we focus on getting a higher paycheck as soon as possible.
Definitely on the lower end- I make about €2,300 euros gross (with about 35% taxes + $180 for health insurance) but unfortunately it is par for the course in my chosen field (charity work) so I won't be making any more anytime soon. But I can save over 50% of my income because I am very frugal.
Title: Re: Saving in your 20's
Post by: passiveKonnoisseur on November 05, 2015, 09:55:36 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions


What is the benefit between using a Roth and a regular IRA? Same question for the HSA.
Title: Re: Saving in your 20's
Post by: Cromacster on November 05, 2015, 10:02:52 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions


What is the benefit between using a Roth and a regular IRA? Same question for the HSA.

Roth IRA - Pay taxes now, but no taxes upon removal after age 59.5.  Generally a good idea if you are in a lower tax bracket, 15% and below.

Traditional IRA - Tax deductible below a certain income level.  Pay ordinary income taxes upon withdrawal.

HSA - Tax deductible, including FICA if done through payroll withholding.  Tax free when used on medical expenses.  You need a qualifying HDHP plan, but if available this is a great vehicle.

All three accounts have there place in FIRE.  It will vary by individual as to which ones to use.
Title: Re: Saving in your 20's
Post by: use2betrix on November 05, 2015, 11:19:40 AM
27 here. I'm right at around 95k net worth, all in my tax sheltered investments and my taxable VTSAX.

While my net worth is high for my age (outside of this forum) it's rather embarrassing considering my income. I've made around 550-600k since I was 21, but lived a very very unmustachian lifestyle. I'm getting ahead quick, I've probably increased my net worth 60-70k this year.

I am engaged and will be married this winter. My fiancé doesn't work as she travels with me for work, and it's simply not practical for her. It will help me a TON on taxes, and she is very, very mustachian on her own. While she doesn't "call me out" for my poor spending, she is incredibly thrifty and is very much "on board" to saving money in any way we find extra efforts.

Always good to see others my age excelling. It really pushes me as most our age are just spend spend spend. My long term goal is to continue this traveling/contract work lifestyle for another 8 years or so. Then either find a small part time job doing something I love, or just travel and do contract work like I do now for a couple months a year and take the other months off. We plan to have kids in a 4-5 years so a lot will depend on what I think would be best with them. We will continue traveling until they start school.
Title: Re: Saving in your 20's
Post by: flan on November 05, 2015, 11:46:56 AM
***edit*** Oops, forgot to mention that I'm 25 years old this month.

It's nice to have the camaraderie and feel like there's a little community of us thrifty youngsters when my facebook feed is full of tropical vacations, new purchases, and general YOLO-buy-everyone-shots shennanigans.

I'm a part of a pair but will try to post my independent financial situation/goals:
Title: Re: Saving in your 20's
Post by: Hall11235 on November 06, 2015, 06:30:48 AM
Hi all,
I'm 22 and graduated college in May with 30k in student loans.
Down to 20K.
$2,500 dollars in savings.
Company is not getting a 401K until 2016 so no 401k or IRA yet. Just working on crushing student loans.
Make 45k net, but live outside of Boston for work, so HCOL is eating my gainz.
Title: Re: Saving in your 20's
Post by: Totemic on November 06, 2015, 10:14:10 AM
Hey all! This is my first post, and figured this thread was a good place to start :D

I'm 27, my partner is 23.
Currently working my first job out of school as a software developer (I took some time off before school) making 50k. No debt.
Partner is in her last year of school, no income currently. She has ~7k student loan debt, currently 0% interest as it is deferred, and a ~4k line of credit @ 7% interest.
I'm also an electronic musician! I make some extra cash from playing gigs and am hoping to do a few month tour this summer, for which I have the goal of being financially neutral during that time. My soundcloud is here if anyone is interested https://soundcloud.com/totemicmusic/

Current stash: ~50k
Saving:  ~2-2.5k/month currently, out of 3200 after-tax monthly salary + random extras from music.
Short-term goal: We plan to move across the country (Toronto-Vancouver) this summer, during the aforementioned tour. We are going to buy a truck and trailer for this out of the stash money (and also to live out of the trailer at music festivals instead of tenting!). Trying to save up ~12k in emergency fund before we leave, in order to be able to cover the trip on 0 income (even though I expect quite a bit from gigs during that time). If we end up spending less than that by the end of the summer, most of the extra will go right in the stash!
Long-term goal: FI at 400k! This is a VERY safe goal, as I plan to continue working as hard as I can on my music career after FI, and my partner plans to continue with her career as long as she enjoys it (concept artist for animation) and do freelance art gigs after. We can absolutely live on our income from music/art, although it doesn't leave very much room for saving with current projections. Essentially the 400k would just sit around working for us and building itself up indefinitely!

The long-term goal is seriously long-term, probably by 2030, as I plan to take multiple long sabbaticals where I will not be saving very much to continue with my music career. Essentially my plan is to take short (6-8month) contracts in tech during which I save a lot, followed by music-focused touring and/or music production periods where I mostly break even and let the stash build itself up!
Title: Re: Saving in your 20's
Post by: TheAnonOne on November 06, 2015, 12:01:34 PM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Job: $16.50/hr
Student with two and a half years left in school.

Goal $50,000 when I finish school in 2018.

I will use your format...

I am 25 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $22,500
LendingClub: $42,650, 9.8% returns after 3 years
401k: $47,000
Taxable: $30,000
Savings: $30,000 (checking acct, will probably buy more shares soon)

Job: $82.00/hr (with a lot of OT, about $200,000 yearly)

Goal $1m (or very close) when I finish being in my 20s.
Title: Re: Saving in your 20's
Post by: mrteacher on November 06, 2015, 12:03:29 PM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Job: $16.50/hr
Student with two and a half years left in school.

Goal $50,000 when I finish school in 2018.

I will use your format...

I am 25 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $22,500
LendingClub: $42,650, 9.8% returns after 3 years
401k: $47,000
Taxable: $30,000
Savings: $29,000
Job: $82.00/hr (with a lot of OT, about $200,000 yearly)

Goal $1m (or very close) when I finish being in my 20s.

What do you do for work?
Title: Re: Saving in your 20's
Post by: TheAnonOne on November 06, 2015, 12:04:19 PM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Job: $16.50/hr
Student with two and a half years left in school.

Goal $50,000 when I finish school in 2018.

I will use your format...

I am 25 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $22,500
LendingClub: $42,650, 9.8% returns after 3 years
401k: $47,000
Taxable: $30,000
Savings: $29,000
Job: $82.00/hr (with a lot of OT, about $200,000 yearly)

Goal $1m (or very close) when I finish being in my 20s.

What do you do for work?

Software Consulting (.NET generally)

I started when I was 18 with my first full time job, I have transitioned to an hourly setting in the last 4 years. I have around 7-8 years of experience professionally.

The consulting world is not for everyone. Failure is not really an option, as it can mean painting you as unemployable professionally. Though, if you are good, the rewards are there.
Title: Re: Saving in your 20's
Post by: use2betrix on November 06, 2015, 01:45:04 PM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Job: $16.50/hr
Student with two and a half years left in school.

Goal $50,000 when I finish school in 2018.

I will use your format...

I am 25 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $22,500
LendingClub: $42,650, 9.8% returns after 3 years
401k: $47,000
Taxable: $30,000
Savings: $30,000 (checking acct, will probably buy more shares soon)

Job: $82.00/hr (with a lot of OT, about $200,000 yearly)

Goal $1m (or very close) when I finish being in my 20s.

Is your overtime rate at 1.5x or are you a flat rate? Always nice to see young high income earners who have worked hard to get there. Do you have a degree? My income is similar to yours and I only have my associates which wasn't needed and after several years in the business (industrial construction). There certainly are ways to earn the high incomes without a degree for those who work hard and take the right path.
Title: Re: Saving in your 20's
Post by: YogiKitti on November 06, 2015, 05:55:55 PM
Hi everyone! I'm 22, married, and in grad school. I'm not  in my "real" job yet for another few years, sadly.

Based upon a comment above I created my own journal, does anyone else have one? I'm really hoping to connect with others my age. It is so hard to be frugal or try to push yourself when the people that surround you are spendypants. It once came up that we went out to eat twice a month max my coworkers starred at me like they saw a ghost.
Title: Re: Saving in your 20's
Post by: srose on November 08, 2015, 02:24:11 PM
Thanks for the inspiration, everyone! I am 21, just starting on this adventure. I'm graduating college this year with 19k net worth. What I'm really interested in working on is field botany research, so I've made my money during the summers only so far, working hard and living the dirtbag life. I'm grateful to this community for letting me know that it is possible to choose whatever life I want, and be financially independent enough to choose to work seasonal jobs wherever I want, for a while at least.

I actually just finished working my way through the list of all posts since the beginning of time, so was wondering if anyone had any other suggestions for good blogs or websites that have good stories and Mustachian values? I've started ERE and JD Roth's, just wondering if I'm missing some other great ones?

Not exactly financial, but here's one of my favorite websites: http://zenpencils.com/comic/161-shonda-rhimes-a-screenwriters-advice/
Inspirational quote comics!
Title: Re: Saving in your 20's
Post by: jamface10 on November 09, 2015, 01:16:11 AM
I'm 24, have about $38K in savings and kiwisaver, and about the same in student loans (interest free, with compulsory payments from my income). Make about $80K before tax.

My goals are to save for a Europe trip, and a deposit for a house. Probably in that order.
Title: Re: Saving in your 20's
Post by: Misstachio on November 10, 2015, 06:54:47 AM
I'm 23,just found MMM, and just started my first real job as a mechanical engineer!
I've only been full-time for a few months but luckily I saved up a bit from summer jobs at school despite not knowing what I was doing at all.

Current stats:
Roth IRA: $7,000
HSA+401k: $6,800
House Down payment fund: $9,917
Liquid: $4740
Job: $63,000/year

Short Term: Make more money
Long Term: Get over $400,000 by 30s so I can quit my corporate job and become a (non)starving writer and hopefully raise some kids. Or maybe move abroad and teach English, idk yet.
Title: Re: Saving in your 20's
Post by: Guizmo on November 10, 2015, 07:04:05 AM
I'm in! I work in education and make about 42k from the job. I'm 26 and here are my current stats:

IRA: $14,000
457: $17,000
401k: $1,000
Condo Equity: $70,000
House Equity: $10,000
Liquid: $3,000

Short term goal: Apply for grad school, continue maxing out 457 and IRA
Mid term: Continue fixing up my house, rent it out by next year and move into my condo, earn more money
Long term: FIRE by mid to late 30s.
Title: Re: Saving in your 20's
Post by: andyp2010 on November 10, 2015, 07:28:18 AM
Hey, I'm 25, I've been really lucky to get into property investing at the same time as a huge upswing and found a fun and profitable niche. Now concentrating on holding, making a few improvements to the rentals and paying down debt.

Was at $40k NW 3 years ago.

I quit work a few months ago, Should be well under $1m debt by this time next year and planning to travel the world a bit more and work odd jobs to pay for flights etc along the way. Looking forward to 13 years and 7 months time when I have no debt on these properties and stand to double my income as a result assuming rents stay flat and interest rates don't go up. It'll probably be a mixture. It's looking something like this -

After expenses income from rentals - approx $60kpa
Property - $1.4m
Debt, all mortgage - $1.03m
Cash - $5k
Kiwisaver retirement (no time for it right now, rather pay down debt)- $5k

NW - $380k
Title: Re: Saving in your 20's
Post by: TheAnonOne on November 10, 2015, 10:48:51 AM
Shout out to the 20-somethings trying to reach FI. Comment below to express your goals and current status.

I am 23 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $2,200
LendingClub: $1,100, 14.07% returns after 1 year
Savings: $22,000
Job: $16.50/hr
Student with two and a half years left in school.

Goal $50,000 when I finish school in 2018.

I will use your format...

I am 25 and trying to build my savings and IRA etc and so far I am doing less than I should.

Current stats:
IRA: $22,500
LendingClub: $42,650, 9.8% returns after 3 years
401k: $47,000
Taxable: $30,000
Savings: $30,000 (checking acct, will probably buy more shares soon)

Job: $82.00/hr (with a lot of OT, about $200,000 yearly)

Goal $1m (or very close) when I finish being in my 20s.

Is your overtime rate at 1.5x or are you a flat rate? Always nice to see young high income earners who have worked hard to get there. Do you have a degree? My income is similar to yours and I only have my associates which wasn't needed and after several years in the business (industrial construction). There certainly are ways to earn the high incomes without a degree for those who work hard and take the right path.

No, it's a flat bill rate. Overtime to me is just any time past the typical 40/w but in reality, to the business, it's just another company taking 45/h/w to complete something, and not necessarily an employee. (I hope that makes sense, since I am in essence a company, not an employee)
Title: Re: Saving in your 20's
Post by: grenzbegriff on November 10, 2015, 11:47:22 AM
I'm 25 and have always saved most of my money and intend to continue doing so.

In 2014 I spent $25k, 2015 I'll have spent ~$28k by year end.   Half of that goes to silicon valley rent, I pay $1150/mo to live very close to work and not own a car.  I'm hoping to cut my spending some, at least stay below $25k / year, hopefully lower.  If do that, I'll be FI before I'm 27. 

What I want to do is keep my living expenses flat throughout my life or at least not start spending more, and not worry about income when deciding what to work on in the future, and eventually give away my savings once I decide what's the best place to use them.  I do give away 5-10% of my income right now, because it's fun and to remind myself that everything I have is a gift and I don't need to cling to it.  Telling people that this is my plan helps me stick to it and think better before I spend money on myself.
Title: Re: Saving in your 20's
Post by: passiveKonnoisseur on November 16, 2015, 03:19:55 PM
I'm 25 and have always saved most of my money and intend to continue doing so.

Last two years I've spent a total of $25k / year which is rather extravagant.   Half of that goes to silicon valley rent, I pay $1150/mo to live very close to work and not own a car.  I'm hoping to cut my spending some, maybe get closer to $20k / year.  If do that, I'll be FI before I'm 27. 

What I want to do is keep my living expenses flat throughout my life or at least not start spending more, and not worry about income when deciding what to work on in the future, and eventually give away my savings once I decide what's the best place to use them.  I do give away 5-10% of my income right now, because it's fun and to remind myself that everything I have is a gift and I don't need to cling to it.  Telling people that this is my plan helps me stick to it and think better before I spend money on myself.

I am impressed you have gotten your expenses down that low in California, Silicon Valley no less.
Title: Re: Saving in your 20's
Post by: grenzbegriff on November 17, 2015, 08:55:05 AM
I lied actually.  I hadn't calculated my expenses when I wrote that, I was just estimating.  I have since made the spreadsheet of all my expenses.  2014 estimate was correct (under $25k), but I've already spent over $25k this year.  I've broken it down in detail here so anyone can see how I'm doing it:
http://www.grenzbegriff.com/2015/11/i-decided-to-track-my-living-expenses.html

Given that $4k of that was to get nice camera equipment -- I could pretend my expenses this year will still be ~$25k... but that's cheating.  Photography is my main hobby / creative outlet as of the last two years outside my job.  I intend to do better next year though, now that I'm actually keeping track.  This year I already bought a lot of stuff that should last me many years.  I also just got back $300 selling stuff on craigslist and have $1300 more for sale.

I think I'm in a very fortunate situation -- being young and healthy and single and in a place that's very easy to live with no car, there's not much I need to spend money on other than rent.  However, I dare say there are a lot of people in this same situation who are spending a lot more in this area.  I at least don't know anyone else here who's living without a car.  :p
Title: Re: Saving in your 20's
Post by: Britan on November 18, 2015, 12:04:56 PM
Woo go millenials!
I'm 26 in the DC area.

401k:18k
Roth IRA: 3k (just started today!)
HSA: 1000.01 (started last month)
Other: 5k
Total: 27k. Wow. Not as amazing as some but it's the first time I've added it all up and better than I expected!
Income: 60k pretax (3400/month)

One thing I'm trying to work out... With my current income and rent, it's hard to max the retirement accounts, pay rent and expenses (mostly rent) AND save for a house. It's a hard spot though. I'm in an area where buying would dramatically lower my housing costs (rent super high but home prices really low) but because of my housing costs, it may not make sense to prioritize a down payment if I have to give up puttin stuff in retirement. I guess there's the 401k loan but that option squicks me out for some reason.
Title: Re: Saving in your 20's
Post by: monstermonster on November 19, 2015, 12:13:33 PM
Woo go millenials!
I'm 26 in the DC area.

401k:18k
Roth IRA: 3k (just started today!)
HSA: 1000.01 (started last month)
Other: 5k
Total: 27k. Wow. Not as amazing as some but it's the first time I've added it all up and better than I expected!
Income: 60k pretax (3400/month)

One thing I'm trying to work out... With my current income and rent, it's hard to max the retirement accounts, pay rent and expenses (mostly rent) AND save for a house. It's a hard spot though. I'm in an area where buying would dramatically lower my housing costs (rent super high but home prices really low) but because of my housing costs, it may not make sense to prioritize a down payment if I have to give up puttin stuff in retirement. I guess there's the 401k loan but that option squicks me out for some reason.

You can save in your Roth IRA, depending on how comfortable you are with that - anything you withdrawal for a first-time home purchase is penalty-free.
Title: Re: Saving in your 20's
Post by: retirementhunter on November 19, 2015, 12:30:17 PM
I'm 27, currently at 195k NW. I've been saving since my first real job at 23 with 1k NW.

401k: 30k
Securities: 165k
Income: 39/hr

My goal is to FIRE at 30 with 450k NW in 2018.
Title: Re: Saving in your 20's
Post by: Gone Fishing on November 19, 2015, 12:49:09 PM
Great thread! 
Title: Re: Saving in your 20's
Post by: JPinDC on November 19, 2015, 01:20:40 PM
I'm in an area where buying would dramatically lower my housing costs (rent super high but home prices really low)...

Are we talking about the same DC? I live in NoVA and definitely wouldn't call home prices low in the DC metro. I like living here for now, but I don't really want to stay long enough to consider buying a home.
Title: Re: Saving in your 20's
Post by: Britan on November 20, 2015, 11:26:03 AM
I'm in an area where buying would dramatically lower my housing costs (rent super high but home prices really low)...

Are we talking about the same DC? I live in NoVA and definitely wouldn't call home prices low in the DC metro. I like living here for now, but I don't really want to stay long enough to consider buying a home.
Same DC, different direction. Think places you can get to DC from on public transit, but which have less than stellar neighborhoods and murder rates. That sort of thing tends to bring prices down. ;)
Title: Re: Saving in your 20's
Post by: CientoUno on November 23, 2015, 10:30:44 PM
I'm always simultaneously motivated and overwhelmed by these threads, for these reasons:

Age: 25 (26 next month)
Savings: Around $15,000
Investments, 401k, etc: 0
Income: Around $1,200/month (but I'm in Thailand)
Debt: 0

I decided post-college to just not get a typical, well-paying job and instead go teach English abroad for meager sums (very, VERY livable in the local context, but horrible for FIRE goals). Now I'm in my mid-20s, educating myself on investing and stash-building, and reorienting my priorities, but I'm quite behind. My future progress depends entirely on what job I'm able to find back in the States with a communications degree. And, if all my friends around the 20-30K/year range are any indication... we didn't do things as intelligently as many of you here.

Gah. I know I still have lots of time to turn things around, I just wish I'd gone a smarter route earlier on. I could have been halfway there by now, and then done all my traveling. I have some savings, and no debt, which is nice. I regret nothing, but now I've got some catch-up to do.
Title: Re: Saving in your 20's
Post by: GuitarBrian on November 24, 2015, 01:08:15 AM
I am 27. Been saving more than I earn my whole life.

Bought 2 rental properties in Phoenix area in 2010/2011.

I don't earn enough steady income to qualify for a loan. Was able to borrow some (50%) from family.

Both properties are paid off now.

With the rent coming in, plus the apreciation (up about 300% now) this was so far a good decision.

Current NW 320k.

Goal: Buy a 3rd rental. Live of the rent.
Title: Re: Saving in your 20's
Post by: 2Birds1Stone on November 24, 2015, 05:33:14 AM
I am 27. Been saving more than I earn my whole life.

Bought 2 rental properties in Phoenix area in 2010/2011.

I don't earn enough steady income to qualify for a loan. Was able to borrow some (50%) from family.

Both properties are paid off now.

With the rent coming in, plus the apreciation (up about 300% now) this was so far a good decision.

Current NW 320k.

Goal: Buy a 3rd rental. Live of the rent.

Your story is so freakin awesome!! Once you have your third rental you will be golden!! Just goes to show that you don't have to be a multi millionaire to reach financial independence at a young age.
Title: Re: Saving in your 20's
Post by: grosvenor6 on November 24, 2015, 06:21:01 AM
Age: 20
Savings: 17k
401k: 3k
Gross Income: 37k/year
3% raise every 4 months so I can't wait to see my saving numbers next year at this time.

Started my first full time job 10 months ago, looking into starting an IRA pretty soon.
Title: Re: Saving in your 20's
Post by: YoungGranny on November 24, 2015, 07:54:05 AM
Everyone on here is so inspiring! It's awesome to see a bunch of us 20 year-olds focused on the bigger goal. I want to try to throw more at my roth-IRA this year. So my goal is to free up some more money to get that in before the end of the year.
Title: Re: Saving in your 20's
Post by: jorjor on November 24, 2015, 09:31:00 AM
I'm 27. Wife is 31. NW about $245k right now.

401k: $72k ($10k of which is Roth)
IRA: $26k
Roth IRA: $9k
Taxable: $11k
HSA: $14k ($9k invested)
Home equity: $84k

The rest in cash/emergency fund. We really got into this in earnest this year. Our NW has went up over $100k since the start of 2015.

One non-mortgage debt which is a $4,200 low interest car loan that I bought in my pre-saving days. It'll be paid off in 2016.

2016 goals include paying down some mortgage, paying off that car loan, and adding $60k in newly invested assets between 401k, HSA, employer matches, IRAs, taxable accounts.
Title: Re: Saving in your 20's
Post by: prax on December 01, 2015, 12:26:57 PM
24 and just recently hit positive net worth. In the past year and a half I've paid off $45k of my $60k student loan debt, so my first major goal is to knock out that last $15k!

Trad IRA: $5,500
401k: $6,000
Emergency Fund: $10,000
Debt: -$15,000

I've saved about $50k in the last year, making $90k pre-tax. I'm really grateful to have discovered FIRE; I've always been a saver, but I was raised in a household without much financial literacy, so my savings would've likely just sat in a checking account.

Goals this year are to learn more about churning and passive income sources, pay off my last $15k of loans, max all retirement accounts, and reduce food and transportation spending!
Title: Re: Saving in your 20's
Post by: FIreDrill on December 01, 2015, 03:15:26 PM
Great to see everyone posting.  I'm 25 and my wife is 22.  I recently finished my goal of graduating college with 100k NW and now we are on to other goals.  Short term goal is to get fit and enjoy life while our long term goal is to be FI in our early 30's.  Below is our combined numbers.

Age: 22&25
Gross income: 120k
Investments:   140k
Home equity:   30k
Cash:               10k

Total NW = 180k


We are saving about 60%-70% or our income right now and should break 200k by years end.  I'm hoping we can increase our NW by 80k-100k or so per year but we will see how it turns out.


SS
Title: Re: Saving in your 20's
Post by: BarbeRiche on December 01, 2015, 03:35:49 PM
Great to see everyone posting.  I'm 25 and my wife is 22.  I recently finished my goal of graduating college with 100k NW and now we are on to other goals.  Short term goal is to get fit and enjoy life while our long term goal is to be FI in our early 30's.  Below is our combined numbers.

Age: 22&25
Gross income: 120k
Investments:   140k
Home equity:   30k
Cash:               10k

Total NW = 180k


We are saving about 60%-70% or our income right now and should break 200k by years end.  I'm hoping we can increase our NW by 80k-100k or so per year but we will see how it turns out.


SS

Wow congratz!  I didn't think you were that young with that kind of NW.  Our situations are pretty similar but you're a bit ahead...and younger :P

GF and I are both 27
A bit under 130k NW

I'm also planning on our NW increasing by 80-100k/year (80k this year).

I'm so thankful to have ''woken up'' early in life and started saving aggressively in my mid 20's.  My perspective on life has changed quite a bit since then.
Title: Re: Saving in your 20's
Post by: FIreDrill on December 01, 2015, 04:06:07 PM
Great to see everyone posting.  I'm 25 and my wife is 22.  I recently finished my goal of graduating college with 100k NW and now we are on to other goals.  Short term goal is to get fit and enjoy life while our long term goal is to be FI in our early 30's.  Below is our combined numbers.

Age: 22&25
Gross income: 120k
Investments:   140k
Home equity:   30k
Cash:               10k

Total NW = 180k


We are saving about 60%-70% or our income right now and should break 200k by years end.  I'm hoping we can increase our NW by 80k-100k or so per year but we will see how it turns out.


SS

Wow congratz!  I didn't think you were that young with that kind of NW.  Our situations are pretty similar but you're a bit ahead...and younger :P

GF and I are both 27
A bit under 130k NW

I'm also planning on our NW increasing by 80-100k/year (80k this year).

I'm so thankful to have ''woken up'' early in life and started saving aggressively in my mid 20's.  My perspective on life has changed quite a bit since then.

Thanks!

And yes, I feel very lucky to have gotten into finances and investing at a young age.  The few poor purchases that I've made have taught me a lot.  It's amazing how quickly you can raise your NW when you start to become efficient with you income and spending. 

We may undergo a large swing in the income department this next year (downward).  Hopefully everything transitions well and we don't take a large hit but you never know what will happen when you go into contract type work.  But, if it goes well, our income could skyrocket as well....  I guess only time will tell!

SS
Title: Re: Saving in your 20's
Post by: kpd905 on December 01, 2015, 05:30:42 PM
We are married and both 28.  I just paid off my student loans last month ($96k paid off in 2 years, 10 months), so now it is time to start maxing out all of our investment accounts.

I just checked our balances and we missed hitting the $100k mark for the first time by about $200.

For 2016 I want to max both 401ks and traditional IRAs, so with matches we'll invest about $52,000.  We'll also be trying to save around $1500 a month toward a house down payment next year.  I'll be happy if we hit $200k invested by the time I am 30 (21 months from now).
Title: Re: Saving in your 20's
Post by: AcftW on December 01, 2015, 05:31:20 PM
23 Male here, USAF veteran, currently in the National Guard, but still full time. No debt.  I've always been pretty good about keeping a safety net (5k or so) but there were still plenty of unnecessary expenditures until early this year, when I started buckling down on myself.  I started putting money into the TSP gov't retirement plan, and saved a lot of money on a reasonably short deployment overseas.  I discovered MMM just a couple months ago, and realized I'd pretty much been keeping the same principles, though much less efficiently.  (I keep kicking myself for not adding money to the TSP while I was active duty).

Been changing how I do things since October, and now the majority of my money is in my portfolio/IRA/TSP, and my net worth has gone way up, compared to where it was.  If things go as planned, I'll be getting into defense contracting mid-2016 and going overseas for 6-12 months a year and making $$$.  Trying to transition away from the military while taking the trades I've learned to the private sector.  (Mechanics/Welding/Machining)

Typed way more than I thought (1st post).  All right, here goes:

Gross Income: $45k
Net Worth: $40,061 as of Dec 1, 2015
Title: Re: Saving in your 20's
Post by: totesmahgoats on December 01, 2015, 06:30:40 PM
I feel like I'm woefully behind.

29, married young, fell out of the workforce for five years to breed and we spent that time paying off student loans and engaging is light spendy pants behavior. We're now trying to right the ship.

Tax advantaged retirement accounts 115k
Non tax advantaged investments $6k
Savings for house $65k

No debt.

I went back to work (parttime) this year; should be able to add 65k to the stash next year.
Title: Re: Saving in your 20's
Post by: monstermonster on December 02, 2015, 08:33:58 AM
I'm always simultaneously motivated and overwhelmed by these threads, for these reasons:

Age: 25 (26 next month)
Savings: Around $15,000
Investments, 401k, etc: 0
Income: Around $1,200/month (but I'm in Thailand)
Debt: 0

I decided post-college to just not get a typical, well-paying job and instead go teach English abroad for meager sums (very, VERY livable in the local context, but horrible for FIRE goals). Now I'm in my mid-20s, educating myself on investing and stash-building, and reorienting my priorities, but I'm quite behind. My future progress depends entirely on what job I'm able to find back in the States with a communications degree. And, if all my friends around the 20-30K/year range are any indication... we didn't do things as intelligently as many of you here.

Gah. I know I still have lots of time to turn things around, I just wish I'd gone a smarter route earlier on. I could have been halfway there by now, and then done all my traveling. I have some savings, and no debt, which is nice. I regret nothing, but now I've got some catch-up to do.
You're still doing great, and I'm positive your experience living and working abroad will reap you sums of cash later in life. And make you more fun at dinner parties.

Many people on MMM are busy trying to save save save at jobs they hate just so they can go abroad and live cheaply, and never end up doing it because life gets in the way. Easier to do it while you're young and relatively unburdened AND have income coming in.

Also, I made $1,200/month for full-time work in the US for years, so don't kick yourself about the income. These $60-80K incomes we see on MMM are NOT the norm for the US even. They are well above household median income for the country. $1200/month with no dependents is fine in most of the us, and if you get $30K when you come back, keep frugal habits and you'll still be on your way to FIRE!
Title: Re: Saving in your 20's
Post by: meyling on December 05, 2015, 01:21:31 PM
I figured I'd make a post here since I'm 23. I graduated college in Dec 2014, so this year was my first year of really being an adult! I have learned *so* much about taxes, investing, and retirement plans in the past few months.

2015 has been a pretty good year for me, even though I only started reading MMM and thinking about FI a few months ago. I'm not going to go into specifics on what my current assets are, but my goal for 2016 is to increase my net worth by 35k.
Title: Re: Saving in your 20's
Post by: bloomability on December 05, 2015, 03:44:43 PM
I feel a little behind here but then I go to the real world, and I'm shockingly ahead.

27 and single and trying to figure everything out with a NW of $52k and no debt. My goal is to be at $70k at the end of next year with a stretch goal of $75k.

I would also like to be in a position to buy a house in a couple of years but don't know if that'sa sure thing.
Title: Re: Saving in your 20's
Post by: swashbucklinstache on December 06, 2015, 02:47:30 PM
26.75 years old, NW of 110K, 2K debt. Started adulting in 6/2011 at 22.25 years old with -30K NW after graduating. Across those 4.5 years, salaries of roughly 38K, 52K, 60K, 68K, 73K (for last 0.5 years). Hoping to go up 40-50K next year in NW. Really rough guesses, but that's somewhere around 255K in total salary eventually turned into +140K NW over 4.5 years. About 80K total went to post-direct deposit living expenses, then the rest is between taxes, pre-tax health insurance, company 401k matching, market gains, and fuzzy math.
Title: Re: Saving in your 20's
Post by: smella on December 06, 2015, 05:50:54 PM
Hi youngsters! good to seem some other frugal/FI/early RE young people.  I'm in a situation where I can't discuss money at all with my friends, based on our completely different approaches to spending and lifestyle, plus some class background shame stuff that makes it tricky.

I was raised frugal-  i have one extremely frugal parent who was all about the less work, low income, low expense lifestyle.   my other parent worked more, had a higher income and spent more but in the scheme of materialist america she's still on the frugal side.  both of my parents were self-employed, small business owners so I grew up with financial competence. SO grateful for that.  they also chose their own hours and prioritized other things over work.

I am 25, current net worth around 90k.  (~5.4k IRA, ~15k robo-investor ETFs, ~43k long term holding stocks, ~27k liquid).
I know that's too much liquid- I'm still trying to decide what to do with it and how much I will need for some upcoming major expenses. 

I got my BA and MA on full scholarship and worked for living expenses. Graduated debt free.  I chose my study based on passions, and have some quite non-lucrative degrees.  I was never worried about it though since I am so frugal and I didn't incur any debt     For the past four years I've been living on my PhD fellowship, which is $25k/yr.  I also do some additional part time work- teaching, editorial,  and odd jobs if they seem fun.  My 2015 income  will end up a smidge over $45k, and my savings rate is over 50%.    It could be higher though!

I live in NYC where the cost of living is famously extreme, but a lot of it can be avoided.  Luckily I'm married and my wife is a home owner.  Her mortgage payments are $1,300/month. To rent our apartment would be $2,000/month easily.  She is not a mustachian, and in fact is somewhat spendy, but she has a high income (by my standards, haha, at $130k gross) so I haven't hassled her too much.   I am a good influence though:   I cook tons of meals at home, we belong to a food coop with excellent prices, and we are both 100% bike+public transit.   I'm trying to get her taxable income down-- we got married this year, which will make a big difference come April,  I made a max IRA contribution (if i had been single I definitely would have gone ROTH),  I have convinced her to max out 401k contributions, and next year we will max out HSA contributions.   She's 50 years old, with $500k in multiple 401k accounts and $43k liquid.     combining our assets, we're not too far off FI. Yet, I'm interested in keeping our money in "mine" and "hers" piles even if it is name only. While I want to encourage her to make smart money moves, I also don't feel it's my place to be the police about her spending since it is her money, after all.

Anyways, I am currently trying to get pregnant.   My income will be $45k again for 2016 but then I will stop working for 5 years (i'll be finishing my dissertation and writing a book proposal, but won't be making money).  When the kiddo is 5, I will hopefully be able to get a university professor job (starting around 70k and going up and up every year) or worst case scenario work as a high school teacher (50-70k).  At that point, my wife will retire and homeschool our child.     

My goal is to build my 'stache ruthlessly in 2016 before the baby arrives.  Even though my savings rate this year was well over 50%, I'd like to see it increase substantially next year.  2015 had some big ticket items: my wedding (5k), a folding bicycle for multimodal travel (3k), and the beginning of fertility treatment (2.5k).  Once I quit working my frugal energies will be entirely devoted to cutting costs (with the added silver lining of making more environmentally sustainable choices in order to do so).  I definitely want to retire by 40 at the latest!    And yes, I do have a huuuge advantage by being married to a much older person.  I highly recommend it ;)!
Title: Re: Saving in your 20's
Post by: smella on December 06, 2015, 05:54:37 PM
Sorry for the novel above ^.

What I'd love to get from/talk about with the group:
-investment strategies
-

...ok, mostly investment strategies!   
Title: Re: Saving in your 20's
Post by: marcela on December 06, 2015, 07:12:11 PM
I'm 27, married with 1 pampered pooch. My husband is a student and neither he or the dog bring in any money so we are a single income household.

Income: 55k (just for the past 6 months, had been at 38k for 1.5 years before that)
NW: 69k
--Savings for house: 34k
--401k 8k
--Roth IRA 13k
--Emergency Fund/eventual second car fund 13k
No Debt

We're right around a 52-52% savings rate for the past year, but that should go up next year as we adjust to the higher income. I think we'll clear 60% savings next year. I should be right at the edge of maxing out my 401k for 2016.

I often feel so very far behind others on this forum due to my history of relatively low salaries. I have to remember that compared to most of the rest of the country and definitely among our RL friends, we are doing quite well indeed. 

Title: Re: Saving in your 20's
Post by: swashbucklinstache on December 06, 2015, 08:03:53 PM
I'm 27, married with 1 pampered pooch. My husband is a student and neither he or the dog bring in any money so we are a single income household.

I laughed at this :).

I often feel so very far behind others on this forum due to my history of relatively low salaries. I have to remember that compared to most of the rest of the country and definitely among our RL friends, we are doing quite well indeed. 

Definitely! Of the roughly 10 similarly-aged friends and coworkers in my life for which I know both their financial situation and that they've made more than your current salary on average, @ 69K you have roughly 7 times the highest NW of the bunch :). And that one has a leased 2015 SUV for their 8 minute city commute, with almost exclusively flat, paved roads as far as they eye can see!!! Frankly you'll probably be retired sipping mai tais (pick your pleasure) before they've even logged in to their 401K website. Thank heavens for opt-in plans.
Title: Re: Saving in your 20's
Post by: maco on December 07, 2015, 10:14:46 AM
Woo go millenials!
I'm 26 in the DC area.

401k:18k
Roth IRA: 3k (just started today!)
HSA: 1000.01 (started last month)
Other: 5k
Total: 27k. Wow. Not as amazing as some but it's the first time I've added it all up and better than I expected!
Income: 60k pretax (3400/month)

One thing I'm trying to work out... With my current income and rent, it's hard to max the retirement accounts, pay rent and expenses (mostly rent) AND save for a house. It's a hard spot though. I'm in an area where buying would dramatically lower my housing costs (rent super high but home prices really low) but because of my housing costs, it may not make sense to prioritize a down payment if I have to give up puttin stuff in retirement. I guess there's the 401k loan but that option squicks me out for some reason.
I don't know what your house savings goal is, but I live a little north of Wheaton and my house was $284k. I had about $20,000 when I closed. Because the mortgage is so much lower than the rent was ($1730 versus $2200), waiting to get 20% down didn't make sense to me. I put 5% down. Now that I'm living in the house with the lower mortgage, I can pay in extra to get the equity high enough to knock off PMI, but that $1730 is including PMI. It'll go down to $1570-ish when I knock the PMI off in Spring 2017.

It's a 2-bedroom, 2-bath. House is small (648 + finished basement = 1296), but back yard is huge. My income was a little higher than yours when I bought (70 versus 60k) (and my now-husband was unemployed / not part of the house purchase)

We're in our late 20s and mid 30s.  Just got on the FIRE bandwagon earlier this year.
401k/ira/tsp 60k
debt 19k (car at 0%, student loan at 2.5%, and a higher-interest student loan that will be paid off in a lump sum this month)
home equity 30k
other 14k

I don't know how much is in my HSA, and I'm not counting the money that my parents gave us for our honeymoon into this.

Income is high enough that we should be putting more in the retirement accounts, and we changed stuff over last month so my husband will max out his 401k next year. As long as we're putting $16,000/yr into extra principal payments on the house and his tuition, though, my 401k is only getting about half of max.
Title: Re: Saving in your 20's
Post by: maco on December 07, 2015, 10:21:23 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions


What is the benefit between using a Roth and a regular IRA? Same question for the HSA.

Roth IRA - Pay taxes now, but no taxes upon removal after age 59.5.  Generally a good idea if you are in a lower tax bracket, 15% and below.

Traditional IRA - Tax deductible below a certain income level.  Pay ordinary income taxes upon withdrawal.

HSA - Tax deductible, including FICA if done through payroll withholding.  Tax free when used on medical expenses.  You need a qualifying HDHP plan, but if available this is a great vehicle.

All three accounts have there place in FIRE.  It will vary by individual as to which ones to use.
Missed an important thing on the Roth IRA:

You can withdraw contributions (but not earnings!) tax free after 5 years. That's how the Roth conversion ladder works. You shift a year's worth of money from a traditional account (and pay taxes then), then 5 years later you can spend it tax-free. Yes, you still pay the taxes during conversion but you don't pay the under-age-59.5 penalty that you'd otherwise pay to get money out of a Roth account.
Title: Re: Saving in your 20's
Post by: Marus on December 14, 2015, 09:41:31 PM
Greetings! 

I'm 26, single, and still renting.

Roth IRA: 13k
Traditional IRA: 2k
Taxable: 20k
401(k): 5k
Cash: 6k
Misc Assets: 10k

Income: 46k pretax.  My big goal for next year is to donate 10% of my income to good charities and increase my 401(k) contributions to 20%.  I'd like to hit 100k net worth by the time I'm 30 and possibly start generating some rental income (I have to start researching my area and figure out how feasible this is).  I'd like to save 50% of my income, but realistically this probably won't happen since I plan on doing some travelling this year.  I will definitely try to hit 50% for at least a few months though :)
Title: Re: Saving in your 20's
Post by: smella on December 15, 2015, 06:01:59 AM

I often feel so very far behind others on this forum due to my history of relatively low salaries. I have to remember that compared to most of the rest of the country and definitely among our RL friends, we are doing quite well indeed.

You sure are! Most of friends in the 25-50k salary range (we're grad students, teachers, social workers), are saving *nothing* or almost nothing.  :(
Title: Re: Saving in your 20's
Post by: aetherie on December 15, 2015, 06:46:51 AM
Greetings! 

I'm 26, single, and still renting.

Roth IRA: 13k
Traditional IRA: 2k
Taxable: 20k
401(k): 5k
Cash: 6k
Misc Assets: 10k

Income: 46k pretax.  My big goal for next year is to donate 10% of my income to good charities and increase my 401(k) contributions to 20%.  I'd like to hit 100k net worth by the time I'm 30 and possibly start generating some rental income (I have to start researching my area and figure out how feasible this is).  I'd like to save 50% of my income, but realistically this probably won't happen since I plan on doing some travelling this year.  I will definitely try to hit 50% for at least a few months though :)

Hey! I'm so excited to see someone from BTV! I graduated from UVM last year and I miss it. A lot.

Also, I bet if you got a rental close to campus you could make bank.
Title: Re: Saving in your 20's
Post by: Cromacster on March 03, 2017, 08:11:19 AM
Currently 28 and married.  Combined we have about 210k in invested assets.  Our goal is to have over 300k invested by the time we are 30.

With a conservative projection we will hit this number by August of 2017.  I turn 30 in March 2017, so my goal is to hit 300k before then. Gauntlet down.

Hit this mark sometime in February.  Pretty big milestone for us.  We went bowling to celebrate!
Title: Re: Saving in your 20's
Post by: jed2009 on March 03, 2017, 12:56:23 PM
Hey guys, I am new to the forum as well (hailing from Bogle land).  I have been working hard the last 3ish years to get into positive net worth and eventually get to FI.  I love all the people here who are focused on kicking ass and getting free of being a slave to the grind.

Net Worth: (assets including belongings, liabilities, no mortgage)
9/2014 - (-$16,300) (Laid off partially, then 25k income)
1/2015 - (-$13,000) (33k income)
1/2016 - (-$284) (40k income)
3/2017 - $31,380 (59k income)

Roth IRA: 8,800
401k: 9,000
E. Fund: 5,000

In 2014 my Student Loan debt was at ~27k.  Today it is down to 13k, and I plan to pay it off fully by the end of 2017.  After that, only existing debt will be my mortgage which I am okay with! With my new income, giving about 4k a year to IRA, 3k to 401k (100% match as well, 6k total), and the rest going towards getting my student loan out.  After that, max the IRA and go from there!
Title: Re: Saving in your 20's
Post by: Saskatchewstachian on March 03, 2017, 01:47:52 PM
Figured I would do an birthday update! Well month end i guess but still my birthday month.

Birthday 26y.o.

Total household NW (DW & I):$271,088
Breakdown
Debts:

Items not includes are belongings or sale value of vehicles (facepunch worthy). Year-over-Year this net worth change works out to a 120% increase! :)
Title: Re: Saving in your 20's
Post by: jed2009 on March 05, 2017, 12:03:55 PM
Figured I would do an birthday update! Well month end i guess but still my birthday month.

Birthday 26y.o.

Total household NW (DW & I):$271,088
Breakdown
  • Home equity - $98,024
  • My RRSP - $59,664
  • DW RRSP - $21,087
  • My TFSA - $35,503
  • DW TFSA - $35,747
  • Company Shares - $10,753
  • Chequing Account - $11,423
Debts:
  • Car Loan - $1,114 (@ 0%)

Items not includes are belongings or sale value of vehicles (facepunch worthy). Year-over-Year this net worth change works out to a 120% increase! :)

Holy crap, you are looking great!  Well on your way!!  Nice job.
Title: Re: Saving in your 20's
Post by: FIreDrill on March 07, 2017, 05:26:46 PM
Great to see everyone posting.  I'm 25 and my wife is 22.  I recently finished my goal of graduating college with 100k NW and now we are on to other goals.  Short term goal is to get fit and enjoy life while our long term goal is to be FI in our early 30's.  Below is our combined numbers.

Age: 22&25
Gross income: 120k
Investments:   140k
Home equity:   30k
Cash:               10k

Total NW = 180k


We are saving about 60%-70% or our income right now and should break 200k by years end.  I'm hoping we can increase our NW by 80k-100k or so per year but we will see how it turns out.



Thought I would post an update after nearly 15 months.  Below are our current stats.


Age: 23&26
Gross income: 140k
Investments:   225k
Home equity:   50k
Cash:               28k

Total NW = 303k


The last 15 months have been pretty good to us.  My wife ended up staying at her job and I've received several raises along with a promotion.  What will happen this next year is really up in the air.  I have a possible job opportunity that would result in us moving 2k+ miles into a HCOL area if it comes through.  The job would have to be perfect and the pay would have to be amazing for us to make the jump.  Our combined income potential there could be huge after a year or so (200k+).

Thanks to whoever bumped this thread!  It was a fun reminder of how far we have come since Dec 2015.
Title: Re: Saving in your 20's
Post by: sieben on March 15, 2017, 08:28:56 PM
Wow, there are some incredible numbers in this thread.
Great work everyone!

It's always such a shock to go from talking to people in the real world to talking to people on here.
Most people I know my age are still just talking about maybe starting to pay off their students loans. Not that, it stops them from buying houses ;)

I'm 26 and quite happily renting.
I entered the workforce in earnest 2.5 years ago with about 10k in debt.
I just cracked 100K net-worth last month and it feels awesome. 50K of that was in the last year :)

I can't wait to see what the next year holds for all of us! :)
Title: Re: Saving in your 20's
Post by: 2Birds1Stone on March 16, 2017, 07:22:02 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions

This would put me at $175k in investments at age 29 :)

Wow, ended up blowing these goals out of the water.

Actual 2016 Values
$20k Taxable
$19.4k 401k (catch up contribution + employer match)
$5.5k Roth
$3.3k HSA
$20k Savings

$68k total contributions

This year my income will be down a bit, but I am striving to make similar contributions.

Net worth should be ~$285k on my 30th birthday in 8 weeks.
Title: Re: Saving in your 20's
Post by: andy85 on March 16, 2017, 07:27:17 AM
Goal for 2016 is

$12,000 Taxable
$  9,500 401k (Max is 20% of base salary for us)
$  5,500 Roth IRA
$  3,000 HSA
$30,000 Total New Contributions

This would put me at $175k in investments at age 29 :)

Wow, ended up blowing these goals out of the water.

Actual 2016 Values
$20k Taxable
$19.4k 401k (catch up contribution + employer match)
$5.5k Roth
$3.3k HSA
$20k Savings

$68k total contributions

This year my income will be down a bit, but I am striving to make similar contributions.

Net worth should be ~$285k on my 30th birthday in 8 weeks.
Nice bro! The 285k figure me think of the below article i read yesterday...just a nice way to look at things sometimes...

http://actionecon.com/double-your-money-again-and-again/
" Once you have saved $256,000 then without any further investment it is only about 10 years until you are at a half million or 20 years to 1 million."

So just make enough to cover expenses for the next 20 years and you'll be all set!
Title: Re: Saving in your 20's
Post by: 2Birds1Stone on March 16, 2017, 08:53:39 AM

Nice bro! The 285k figure me think of the below article i read yesterday...just a nice way to look at things sometimes...

http://actionecon.com/double-your-money-again-and-again/
" Once you have saved $256,000 then without any further investment it is only about 10 years until you are at a half million or 20 years to 1 million."

So just make enough to cover expenses for the next 20 years and you'll be all set!

Very cool article, and I agree with it wholeheartedly. I cringe at people who plan on "starting small" and only contribute say 10% of their income to retirement with the goal of increasing that by 1-2% per year moving forward. They are robbing themselves of previous time for compound interest to work its magic.

Granted, not everyone is in the position to save a boatload of money in their 20's or 30's. But most people could potentially be doing a lot better if they understood this simple concept.

I have a glidepath in my mind in terms of easing up on the earning/saving, when my annual contributions start being less than 10% of my overall portfolio value, I will seriously take my foot off the gas.

Whether this is due to underemployment in the near future, or further down the line when my portfolio dwarfs my current contribution, I think that is a good crossover point.

In the meantime, I plan on taking a sabbatical March 31st 2020 anyway (10 year anniversary in a full time career). In the next 3 years, I should add enough to the stache where upon my return to work, I can ease up and let compounding do majority of the work for the next decade.
Title: Re: Saving in your 20's
Post by: thecrazydoglady on March 16, 2017, 09:16:29 AM
Hi all! I'm a 25 year old making 82,400 gross. My goal is FI in my 30's so i'm trying to ramp up this year. This discussion is really encouraging! Here are my stats:


Savings: $23k
Taxable: $19.8K
401K: $26.7K (10% contribution and company match of 3%)
HSA: $4.9K
ESPP: $13K

Total: $87.4


Title: Re: Saving in your 20's
Post by: FIreDrill on March 16, 2017, 11:52:14 AM

Nice bro! The 285k figure me think of the below article i read yesterday...just a nice way to look at things sometimes...

http://actionecon.com/double-your-money-again-and-again/
" Once you have saved $256,000 then without any further investment it is only about 10 years until you are at a half million or 20 years to 1 million."

So just make enough to cover expenses for the next 20 years and you'll be all set!

Very cool article, and I agree with it wholeheartedly. I cringe at people who plan on "starting small" and only contribute say 10% of their income to retirement with the goal of increasing that by 1-2% per year moving forward. They are robbing themselves of previous time for compound interest to work its magic.

Granted, not everyone is in the position to save a boatload of money in their 20's or 30's. But most people could potentially be doing a lot better if they understood this simple concept.

Totally agree with you guys on this and it was one of our goals to secure "traditional" retirement early on in our 20's.

We met that goal sometime last year.  Assuming no additional contributions, our 225k invested stache will grow to roughly 1.5M inflation adjusted given a 30 year investment timeline.  This will put us well into secured retirement by ages 53 and 56.  We still plan on contributing heavily to pre-tax accounts but it's awesome to know that we will be fine as long as we don't withdraw on our investments.

Also, having traditional retirement secured gives me more comfort in taking risks in the short term like changing jobs, going part time, and real-estate investing just to name a few.  And with a 50-60% savings rate, we can easily take on some of these life changes without the risk of withdrawing on our pre-tax accounts. 

Getting a decent stache together in your early 20's gives you so many options in your 30's and 40's.  Keep it up everyone!
Title: Re: Saving in your 20's
Post by: jed2009 on March 16, 2017, 11:57:26 AM
Woot!  Officially paid off another student loan.  So far the payoff history looks like:

1: 363 4.2% = PIF
2: 3,635 6.8% = PIF
3: 5,137 6.8% = 113, almost there!!
4: 7,500 6.8% = 7,548, this is the BIG one, next to go!
5: 5,500 3.3% = 4,600
6: 2,000 6.8% = PIF

Once these are gone my life will be so much better... These have been haunting me for a LONG time!
Title: Re: Saving in your 20's
Post by: Tonyahu on March 17, 2017, 10:46:29 AM
Wow, I am way behind most of you. I am 25, just graduated college, spent my time enjoying my fraternity and not worrying about money. I just learned about investing this past year and am now going strong towards FI.

-Earning 28,000 per year (first job in field, should go up to around $35,000 later this year)
-Current NW about $30,000.
-No Debt
-Just opened Roth IRA this year, planning to max it
-401k opened, only gonna have about 2,000 in it by end of year though
-Currently 60% savings rate, I will never drop below this so FI should be ~10 years.

Cheers!
Title: Re: Saving in your 20's
Post by: recklesslysober on March 17, 2017, 12:26:18 PM
You are all doing amazing!

I wish I would have found MMM sooner, but I'm also glad I didn't find MMM any later.. This is my last year of my 20s, so I might as well post here while I still have the chance. ;)

Found MMM in June 2016 but didn't think I could do it. I started to come around more over the next few months and when I started a journal in November 2016 that's when things really started moving.

-$127K debt, -$117K NW in October 2016
-$112K debt, -$93K NW in March 2017
= ~24K in 6 months

Hopefully I can get to the -$60K NW area by my birthday next year!
Title: Re: Saving in your 20's
Post by: FIREngineer on March 20, 2017, 01:22:56 PM
Currently 28 and married.  Combined we have about 210k in invested assets.  Our goal is to have over 300k invested by the time we are 30.

With a conservative projection we will hit this number by August of 2017.  I turn 30 in March 2017, so my goal is to hit 300k before then. Gauntlet down.

Hit this mark sometime in February.  Pretty big milestone for us.  We went bowling to celebrate!

That's awesome, congrats!!!  We hit that mark about a year ago, and that is where things really started to take off.  Compounding after 300K invested is an amazing thing to watch.  I can't wait to see your future updates.  Do you have an FI timeline yet?
Title: Re: Saving in your 20's
Post by: Cromacster on March 20, 2017, 01:31:42 PM
Currently 28 and married.  Combined we have about 210k in invested assets.  Our goal is to have over 300k invested by the time we are 30.

With a conservative projection we will hit this number by August of 2017.  I turn 30 in March 2017, so my goal is to hit 300k before then. Gauntlet down.

Hit this mark sometime in February.  Pretty big milestone for us.  We went bowling to celebrate!

That's awesome, congrats!!!  We hit that mark about a year ago, and that is where things really started to take off.  Compounding after 300K invested is an amazing thing to watch.  I can't wait to see your future updates.  Do you have an FI timeline yet?

Thanks man, feels pretty good.

No hard set timeline yet.  Chances are we will take a extended hiatus before we actually FIRE.  Oddly enough, our timeline is based off our dog as our plans are not conducive to having a dog.  He's 4, so that could be 4 years from now or 10 years from now.