Aged under 35? What's your biggest financial challenge?

[Bracken_Joy]

-Wanting to be more self-sufficient, but not knowing quite how. I'm not a very good cook, and I've always been the type of person to call someone in for repairs, handyman jobs, etc. I REALLY want to learn how to do these things on my own. I think it'd be an awesome skill set to develop, and it'd be very useful, as well. But I need to find some good resources/people for teaching myself these things first.

Luckily, this forum is a fantastic place for this! Feel free to ask specifics, and people are always great at directing you!

[sam]

I'm 22, my husband is 26. My biggest challenges are:

-Rental properties. We have two and it's very stressful for me when they're unoccupied. So far we've had very few issues with this, but it's always in the back of my mind. I worry about maintenance costs over time as well as the houses age and need repairs.

-Kids. We don't have any yet, but plan to have at least one in the near future. We won't be considering the cost of daycare since we don't plan to use it unless it's absolutely necessary. But as a young wife (who never particularly wanted kids until recently) I have NO idea how much I should budget for child-rearing.

-Wanting to be more self-sufficient, but not knowing quite how. I'm not a very good cook, and I've always been the type of person to call someone in for repairs, handyman jobs, etc. I REALLY want to learn how to do these things on my own. I think it'd be an awesome skill set to develop, and it'd be very useful, as well. But I need to find some good resources/people for teaching myself these things first.

-Peer pressure from friends and others. I know this one is stupid, but I get a bit jealous of my friend's nice new cars and big homes at times. I have no idea why; I'd much rather have financial freedom than be a slave to monthly car payments and a big mortgage. I guess these occasional feelings of jealously have something to do with practically being a teenager still...haha

Thanks for your reply, out of interest do you have an emergency fund set-up for your rental properties? Also are you paying them down or on interest only mortgages? Perhaps you could get these managed to better handle the stress it's causing?

I know how you feel about others nice cars but really what does this mean in the greater scheme of things? So it sounds like you have a great attitude towards this.

Sam

[maco]

My challenge is how to, while paying my minimum mortgage payment plus double the principle extra and paying my husband's college tuition upfront (no taking on more loans), max my Roth IRA for this year (given the year's nearly over). That means coming up with over $4000 in the 3 months that remain this year, while also coming up with over $800 each month to overpay on debt.

[Neustache]

Maco -

I assume (but should probably verify) that you have until April 15 to max out your Roth - I know you do with traditional IRAs.  Are you counting those extra months in to fill up 2015's IRA?

[maco]

Maco -

I assume (but should probably verify) that you have until April 15 to max out your Roth - I know you do with traditional IRAs.  Are you counting those extra months in to fill up 2015's IRA?

No, I'm not, and I am aware I can, it's just that I'd like to get straight onto working on 2016's contributions in January.

[GuitarBrian]

Never had a real financial challenge. Started working at 14... down to 6 months on, 6 months off now.

My biggest challenge in life has been finding a partner (girl). I travel full time, less than a week in each place... makes for a hard dating life.

[dreams_and_discoveries]

Hi all - I'm 34, and my biggest challenge is really keeping my spending reigned in and avoiding lifestyle inflation.

[soupcxan]

My challenge is how to, while paying my minimum mortgage payment plus double the principle extra and paying my husband's college tuition upfront (no taking on more loans), max my Roth IRA for this year (given the year's nearly over). That means coming up with over $4000 in the 3 months that remain this year, while also coming up with over $800 each month to overpay on debt.

I would reduce the extra mortgage principal paydown if it is keeping you from funding a Roth. Once the deadline passes, you can't go back and fund a Roth - you can always pay more on your mortgage in the future. (unless your mortgage is at some crazy high interest rate)

[maco]

My challenge is how to, while paying my minimum mortgage payment plus double the principle extra and paying my husband's college tuition upfront (no taking on more loans), max my Roth IRA for this year (given the year's nearly over). That means coming up with over $4000 in the 3 months that remain this year, while also coming up with over $800 each month to overpay on debt.

I would reduce the extra mortgage principal paydown if it is keeping you from funding a Roth. Once the deadline passes, you can't go back and fund a Roth - you can always pay more on your mortgage in the future. (unless your mortgage is at some crazy high interest rate)

It's a low rate, I'm just trying to knock out PMI. However, I got a surprise bonus check, so that put a nice chunk toward the IRA. (I didn't expect my ex-employer to pay me my annual bonus 2 months after I left!)

[Kaikou]

I'll be 33 in November and I make $35k a year. Shit I know fresh out of college grads making more than that. I got all of 2 grand or so to my name (though fortunately no debt) wiith no retirement savings either. So my biggest challenge is getting started from the bottom with a crap income. I see a lot of case studies where the people have double+ my income, I'd be well on my way if I had that kind of earnings.

I need to find a direction, or calling, or passion or whatever you want to call it in life because shit entry level office job at this stage is no way to be doing it.

I hear ya!

[czarpong]

I just turned 29 and lifestyle inflation is what is currently killing me. It's so easy to eat out or just hop on an uber to avoid the low cost options like the bus or packing my lunch. But on the other hand those help me get through the monotony at work and i can sleep in and perform better.

[arebelspy]

I have a really good life with an embarassingly high salary and I live in a beautiful place and in an era in which healthcare is great and affordable and my biggest hobby, food, costs less than it ever has. I have no complaints and everything is ridiculously awesome. Pew pew pew.

+1!  (Well, except for the high salary part--being FIRE'd, my salary is $0. A good problem to have.)

Well said.

Right now (age 30, wife 29), no financial challenges, and don't expect there to be any, hopefully (and probably) ever.

The biggest financial challenges we faced, looking back on our accumulation years, was just my arrogance/overconfidence/stupidity when it came to investing.

Should have done simple, and passive.

Lost many tens of thousands (well into the six figures) by making financial mistakes. Should have just gotten out of the way.  Live and learn. :)

[Jeddy]

-Wanting to be more self-sufficient, but not knowing quite how. I'm not a very good cook, and I've always been the type of person to call someone in for repairs, handyman jobs, etc. I REALLY want to learn how to do these things on my own. I think it'd be an awesome skill set to develop, and it'd be very useful, as well. But I need to find some good resources/people for teaching myself these things first.

Between the internet and YouTube, you can pretty much figure out how to do any repair, within reason.

It's also not terrible to hire out for some repairs/handymen - BUT, when they come, watch everything they do. Ask questions. You'll hire them once, and next time you'll know how to do it. That's not money wasted. Knowledge is always worth it. The first time I needed my furnace cleaned, I hired it out. I watched and asked questions and it was well worth the price to hire the guy - he did a great job and he provided me with the knowledge and ability to do it myself from there on out.

[TheAnonOne]

Lifestyle inflation and running out of places to put the money without it being taxed like crazy.

[aceyou]

Golden Handcuffs are my big issue...I know, 1st world problems:)

I'm a public school teacher.  32 years old and just got on the FIRE train 1 year ago.  Here's the conundrum:

At about 42 I'll have enough money to FIRE if things go as I project they will simply because we live off half of our income and invest all of the rest.  However, at age 48 my wife and I each receive non-trivial pensions which would huge increase our lifestyle. 

In our early 40's we'll likely have to decide whether our overall life will be happier with us grinding out the last 6 years, or saying we have enough and just letting go of it.  Ideally, we'd like to take a proportionally lower pension and peace out earlier, but those aren't the rules of the game. 

[arebelspy]

Golden Handcuffs are my big issue...I know, 1st world problems:)

I'm a public school teacher.  32 years old and just got on the FIRE train 1 year ago.  Here's the conundrum:

At about 42 I'll have enough money to FIRE if things go as I project they will simply because we live off half of our income and invest all of the rest.  However, at age 48 my wife and I each receive non-trivial pensions which would huge increase our lifestyle. 

In our early 40's we'll likely have to decide whether our overall life will be happier with us grinding out the last 6 years, or saying we have enough and just letting go of it.  Ideally, we'd like to take a proportionally lower pension and peace out earlier, but those aren't the rules of the game.

Once I hit "enough," there is no amount of money that would make me trade 6 years of my life for.  That's a big chunk of time.

I'm okay leaving a lot of money on the table. I'm not okay leaving a lot of time on the table.

Something to consider...but you've got time to think about it.  :)

[Paul der Krake]

The biggest financial challenges we faced, looking back on our accumulation years, was just my arrogance/overconfidence/stupidity when it came to investing.

Should have done simple, and passive.

Are you referring to your failed attempt at stock picking that you talked about on RadicalPersonalFinance?

Up and downs are the norm, I doubt there has ever been an early retiree who hasn't blundered at least once to some degree. Not sure how bad your down was, but you have done exceptionally well on the up. :)

[arebelspy]

I don't remember what I mentioned on there, but probably one of them.

At some point I should make a post with my biggest financial mistakes. 

[FIRE_Buckeye]

The biggest challenge for me, by far, as a 26 year old single guy is finding a balance.
I've always been frugal by nature, and MMM/FI goals have further intensified that mindset. On the other hand, you're only young once, and there's no promise of tomorrow. Has been tough from a mental standpoint balancing saving (currently at a 60-70%+ savings rate on a monthly basis) with allowing myself to spend the money to enjoy things right now.

#firstworldproblems

[Goldielocks]

I don't remember what I mentioned on there, but probably one of them.

At some point I should make a post with my biggest financial mistakes.

That would be an awesome thread!  Not just you, but I think we all have massive "learning experiences" in our past..

[arebelspy]

I don't remember what I mentioned on there, but probably one of them.

At some point I should make a post with my biggest financial mistakes.

That would be an awesome thread!  Not just you, but I think we all have massive "learning experiences" in our past..

And plenty of schadenfreude and "can't look away" car wreck type stories.

If we set a minimum of 10k for the mistake (over the course of a year, not after doing the "this compounded for a decade" thing), I could probably list at least 6-8 things. If we set it for 100k, I could still list at least 2.  Yikes!  :)

 

[doggyfizzle]

Golden Handcuffs are my big issue...I know, 1st world problems:)

I'm a public school teacher.  32 years old and just got on the FIRE train 1 year ago.  Here's the conundrum:

At about 42 I'll have enough money to FIRE if things go as I project they will simply because we live off half of our income and invest all of the rest.  However, at age 48 my wife and I each receive non-trivial pensions which would huge increase our lifestyle. 

In our early 40's we'll likely have to decide whether our overall life will be happier with us grinding out the last 6 years, or saying we have enough and just letting go of it.  Ideally, we'd like to take a proportionally lower pension and peace out earlier, but those aren't the rules of the game.

Once I hit "enough," there is no amount of money that would make me trade 6 years of my life for.  That's a big chunk of time.

I'm okay leaving a lot of money on the table. I'm not okay leaving a lot of time on the table.

Something to consider...but you've got time to think about it.  :)

Age 31, DW 30.  Golden handcuffs are my biggest financial challenge.  Combined we make about 180k/year, and increase our NW annually by 50-70k.  By the time I hit 40, I'll be making enough money in stock dividends, my wife's quarterly draws (20% pre-tax return on our equity investment into her bookeeping/accounting company in 2013 baby!), and dividends from my 10% equity stake in an LLC  that holds some real estate/start-up brewery promissory notes/etc that we can both consider not working.  But I struggle with giving up a sizeable pension at age 57 (along with lifetime medical) and a not-challenging secure 6 figure job because I'd like to pay for college for my kids like my folks did for me.