is 60k good for a 24 year old

True. 1. Doctors found a brain tumor, and . Instead the principal is growing consistently nice and i comfortably believe i wont outlive my assets. I do make 6 figures now, but not without layoffs and proper managing. You dont know that you _wouldnt_ enjoy industry, either. Keep that savings rate constant until it no longer hurts, and start raising the rate by 1% a month again. The choice of houses vs cash left me with only savings of 30x my monthly need (i am in the 40/45 year old range) and a small 401 k that should reach at least 1 mil $ by age 65. Does that seem to be enough? Congrats! My question is,how do you even start doing the stocks without getting bad advice on where to buy stocks. Even with the required private mortgage insurance when putting less than 20% down, you can get a better return on your money in non-equity assets. I hope many people can do more than what you outlined here! I downsized immensely on that next house, but, thanks to the architects I used, I was able to get more usage out of less space. How should a 22 year old, who makes $60k a year with $15K in cash, save/spend their money? Reading these posts a huge eye opener. I am also putting money aside via a HSA (health savings account). Please correct me if I have a mistaken assumption in here. Your 3 months will go by in a nanosecond! But the point is, we can all save more when we really want to. I have the majority of my my money invested with a financial advisement firm and also in online CDs and savings accounts yielding me about .90%. I did without cable or wifi or air conditioning, didnt eat at restaurants and cut my own hair, just little things like that. Let's review my savings by age chart below. @Grayson @ Debt Roundup Geez, Im not nearly as financially independent as most here, but I busted my butt to put myself through school from 25-30 and graduated with ~60k in debt. I probably could (did in college/ law school), but I dont want to live on that. Dont worry about it. This is my first time on your blog. His education, his skills, and his connections. The SNP's Westminster leader has told Sophy Ridge on Sunday that parliament and the public expect action from the BBC over allegations that a BBC star presenter paid a teenager for explicit photos . Million is a large number. During the height of the pandemic in March 2020, the U.S. personal saving rate rocketed above 33% from ~9%. What other ways can I maximize my net worth and earn more money? Also read about the concept of making certain you have your investments and saving in a various forms [i.e., stocks, bonds, and cash]. As Afterlaw poignantly articulated, life happens and one would need to be prepared financially for this. So $11,500 goes to 401K, then $5,000 goes to ROTH, and even more than $16,500 (based on you saying you save more post-tax) goes to post-tax savings for a total savings of closer to $40,000 a year correct? 3-4 hours a day X 365 days = 1,000+ hours a year for two years until I finally built enough courage and momentum to take a leap of faith in 2012 and go out on my own. Heres another tip: TETHER your income to specific desires and needs. I would hypothetically have $270k by 30. Keep making your regular contributions. Thanks! Yes, you can accumulate more by working until 70 or lat. Finished undergrad a couple years ago, living a few miles outside Boston, no overly expensive hobbies like triathlons, overseas travel, or boating, and currently renting an apartment. Then the college expenses start to hit. Does the savings % only represent pre-tax? Fundrise focuses on single-family rentals in the Sunbelt. Glad you enjoyed the post. I appreciate people like you preaching about savings and doing without now so we will have more later (made me not feel like a freak as I was putting 25% of my pay in savings all those 28 years of working). Honestly I get where he is coming from. For a while there my income over the years looked like a bell curve definitely not something people want to see! When you can do something you like to do and help someone else in the process, its one of the best feelings in the world! Id recommend you be more aggressive about growing your salary. The second time, at another dealership, the sales associate couldnt get me a build-order allocation due to the the model line being discontinued. Most importantly, I was able to pay off the mortgage in under three years. Thanks for your amazing and thoughtful articles over the years! Lets say you make $65,000, you should be able to buy a $6,500 car with your post-tax savings while still contributing much more pret-tax for example. Yes, $60,000 is a good salary. Trying to build up my passive income by the time I reach 30 so I can travel full time and work on other projects too that Im also passionate about. My savings as of year-end is approximately: ROTH IRA: 34,000 I also started 2 small businesses which are bringing me about $1000 a month not a jackpot, but better than nothing, and 3 weeks ago bought a website for $2500 which looks to be earning about $500 a month. I work for a university almost solely for the tuition benefit. According to Penns estimation, I should have just over $1M saved by the age of 65. The smart people max out their 401ks and save for the future. I am really going to take your recommendation of saving until it hurts to heart this coming year. But it varies depending on cost-of-living adjustments and inflation rates. but at a certain age, lets say 70, I dont think my propensity to consume would be very high at all. I make around 75 or 80k after bonus, don't have any student loans, and I still don't feel like a baller since I live in NYC. You can definitely spend less on rent that way. House is most likely paid off along with cars so that leaves food, clothing, utilities and another round of taxes (20%). But I cant change the past. Am I on the right track? As you get closer to traditional retirement age, you can save more in Treasury bonds which are yielding over 4% thanks to Fed rate hikes. It enables you to easily monitor your finances. I never went to concerts, events, never drank coffee, never tried drugs, never smoked, didnt go to pubs or restaurants, and never was a social drinker either. thanks for this post. I plan to work until I am 57 where I can receive about $2000.00 a month with out taking money from my TSP and Social security a little later. Keep that thought in mind when other are trying to tell you on the idea of using them to handle your finances. That would cover the some of the costs to house you and or your wife in a long-term care facility when one or both of you get demantia. This has helped me saved thousands in every big purchase, ie. What am I missing here? camera still works right? Patience dont panic when the market drops if youre decades from retirement. I love what I do and intend to work for a good 10 years, but spouse would quit her job in a heartbeat if we could afford for her to do so. Thats horrible advice. Weve gotten all our kids thru college debt-free and dont have any debt ourselves, except $130,000 mortgage left on a $400,000 house. Im a 52 years old and plan to retire around 59. The work-from-home trend is here to stay. Important Note:Obviously no one ever knows what might happen to provide a boost or a drag to their finances. We make $330K combined, have $285K in 401K, 150K in investments, and about $500K in home equity. That is true indeed. SALARY PROSPECTS: Cant take it with you.. I worked through college and post graduate school, rented in less expensive apartments, wore clothes that were used or handmade, drove a 10 year old car (my car currently is 16 years old), had a monthly food budget of $40 so that meant lots of meals at home, used the public library for movies and books etc. The answer to this calculation comes out as $31.25 per hour. Think you can't save more? Our remaining balance is about $170,000.00. 60% of Americans have less than $2000.00 in savings! Cry me a freaking river. I think you should consider paying off loans part of saving. Although, I hate the ROTH. Then, by happenstance, I sat down with an asset manager at dinner and realized it was absolutely wonderful. I turned 26 on Sunday. Hes now in his 40s and he has managed to make lots of good money/investments over the years. Plan A: I think I could be lucky enough to skip post doc ($40k salary) and become a prof ($60 starting) which truly is my passion, even though this is somewhat rare today. I agree with you that young people should be aggressive (I am 28 and am almost entirely small and mid-cap stocks). Its better to be safe than sorry than filled with regret. Also remember all those nice things that your parents did for you when you were a kid? $1500/mo in Manhattan? 3. Total 71,000. Surely if you came to Long Ialand, NY you wouldnt find a single person making 60K/year and living happy. I am not looking to have a high standard of living, but Id hate to have to work till I drop dead. FS, yours in the first voice that Ive heard against Roth options. The way I see it, if you pay taxes up front, you are a guaranteed loser. At first, I thought that the advice was about cars and the one-tenth rule was out of touch. It seems the older my grandparents get the more they are inclined to get in that recliner and watch TV all day. Thanks. -$0 debt (aggressively applied to scholarships till I got a full-ride for undergrad; worked to pay for the tuition until I got the entire bill covered; kept a GPA 3.97) Just to point out, if youre salaried then the simple math of making 50% more if you work 60 hours/week isnt so simple aka, it literally doesnt happen. One suckered a friend of mine into a contract on a black-mold-ridden house, and he ended up losing $5,000.00 in an earnest money deposit when he realized how bad black mold really was and pulled out. Any comments/suggestions will be helpful. Therefore, we can all save more if we want to. It is the most important part of investing and it is the part that you apparently are clueless about. 27 y/o here, bought my first house in 2013, with peers also buying around the same time. I have about $16,000 cash, with an additional 50,000 in stocks in mutual funds. Check out these two posts to answer your questions: This article is great if you take into account the !PERFECT! At the rate were going atwell have it paid off in less than 2 years. Yours is an excellent post filled with truths about the difficulty of discussing finances, and the impact of that on poor levels of financial literacy. Simple math states that you can make 50% more if you work 60 hours a week rather than 50% a week at the same rate. However I would say to that person dont be so quick to judge someone elses heart. People who talk honestly here might be doing so because it is the only place they can use these numbers in complete sentences and get some validation that its OK. To be honest, my wife has modest financial needs, coming from a graduate student/ scientist mindset, and she knows how much money I make; BUT she has never brought herself to say good job, and despite the fact that our needs are fundamentally modest, when I have suggested I might retire early and live off our financial assets, she shot me a worried look and asked whether we could do that and still afford to pay for our sons school. or should i stick to the 10-25% rule? car payment:315/m *would be 0 without new car* You will take a hit, but itll be offset by the years of not splitting your investments when it mattered. Share with us how you got rich after 10 years. Note: Ill be maxing out my 401k in about 2 years (increasing the amount 2000 per year). Full Social Security benefits kick in at age 70 now (from 67), but that's OK, since you never expected it to be there when you retired. Now I have a better place but Im trying to resist the urge to fill it with nice purchases, 2 other things I read online that helped lots : Squirrel money away into multiple accounts so it is harder to find. At ~$40,000 a year in savings, there is no doubt in my mind you will have well over $500,000 accumulated over the next 10 years. However when it comes to the chart of how much cash you should have accumulated by a certain age, i get a bit worried. food:80/m (split bill with gf, so 160 for month for both of us) If you did a couple busy seasons in tax before you graduated, I definitely would've pushed for 65,000. Also, since i dont invest in the stock market i no longer own any index funds or dividend paying stocks. with no principal payments the total mortgage payment over 30yrs is 722k, paying a 2k payment now reduces my overall mortgage payments by $4,412 or 120% return. Rather work hard on ones skills do an MBA from a top ranked university and become a CEO of a decent organization and earn 5 million dollars per year in mid 40s .Also want to know why would one leave an executive level position even though he/she had achieved financial Independence as the earning potential will increase manifold as you move a level up.Is financial indepence is more valuable than a top ranked MBA or an executive level position.Your views are highly appreciated since you worked at an executive level position. Correct. Everything else goes to hookers and blow. (I know Roths are post-tax, but theres also tax benefits on the other end.) But now it's time to spend 90-100% of all your income to enjoy life! After ridesharing, the next highest earning outside-of-work line item you have on your Income Profiles post is corporate consulting related to website. Excuse me? 2 cars are leased. Unfortunately, what you prescribe is actually what is required for a conservatively safe retirement. This is because 1. Even though they arent considered assets for college, you can use money in them to pay for college tuition without penalty. We saved a lot but not enough to put two kids through 4 years of college, and how do you continue saving while doing this? Very little student loans between my wife and I, maybe 15K total. I think spending 65-80% of your income your entire life is spending money isnt it? Look to direct, online-only savings accounts like CIT Bank's Savings Connect Account instead. Valuations are cheaper and rental yields are higher. In the Roth example, Im paying taxes on the contribution today at todays tax rates. Dont harsh on people who need to talk about particulars that come out in this open forum. Luckily Im 26 now and totally changed my thinking about money. For 55- to 64-year-olds with a 401 (k), the average retirement savings is a little more than $408,000, according to the Federal Reserve. I obviously dont talk about worst case scenarios involving divorce with my wife, but honestly at my age Ive seen plenty of friends spouses just dump them (and yes, in my experience it is usually the wife who grows unhappy in middle age, wanting some kind of fulfillment her dutiful husband isnt giving her). PRIVACY:We will never disclose or sell your email address or any of your data from this site. God Bless. If so, then saving way more post-tax than pre-tax is a good thing. Thats $20/week. Should I take out a college loan if I feel I can cover it? If you enjoy work, keep doing what youre doing, and save modest amounts just like you have been doing. Seems good. According to your way of doing it you put in a ton of work and you end up with enough to leave you with 60 k a year.

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