I achieved this by consistently increasing my income and maintaining a high savings rate, with good investment returns, as well. Since then, I had a few significant health issues that cost thousands of dollars per year for several years, plus I had to start permanently financially supporting my mother while in my 20s.ĭespite that, I've eliminated my debt, built up a solid net worth, and even started a personal finance and investing site,. Eight years ago, I had just finished college and had $50,000 in student debt - and a negative net worth. I have $205,000 saved - about $40,000 is savings and about $165,000 is investments. And the Roth IRA contributions are a monthly transaction from my checking account, so I don't have to think about it.Ī graduate degree can help you move up the ranks. The 401(k) contributions come right out of my paycheck, so I never miss them. The best way to save, in my opinion, is to utilize 401(k) and Roth IRA accounts. ![]() I was listening to Dave Ramsey on the radio, who recommends investing 15% of your income in good-growth mutual funds, and I feel really good about my family's future now that we have a retirement strategy. I had very little interest in saving for retirement up until a few months ago. We also have 529 college savings plan accounts for our children. I started a bit late in the game, so I'm holding only about $26,000 across those accounts. I started a 401(k) in 2013 and a Roth IRA in May of this year. We only have about $10,000 in our savings account, and just enough in checking to cover the mortgage, credit card, utilities, life/car/home insurance, etc. As the sole earner in the household, it's difficult to save. If you have kids and want to contribute to funding their education, consider a 529 college savings plan. Instead of taking my new salary and buying a fancy car or larger house, I've used that money to pay off loans faster and save even more money. ![]() ![]() Next, I increased my career worth to get a bigger salary, which then allowed me to save even more money.įinally, I live below my means. Instead of paying bills first, I automatically saved money for my Roth IRA and savings account before I did anything else, and this kept me disciplined to save consistently. Second, I created a spreadsheet of all my bills, loans, and other spending, and this painted a picture of what I could cut out immediately to save some money. It's easier to understand finances than you think - I had zero background in finance/investing prior to 2014 and have since founded Invested Wallet. I started updating and taking my finances more seriously in 2014 when I only had $1,000 in savings, had recently lost my job, and still had student loans and a car loan.įirst, I learned everything I could about investing (including reading books and blogs), IRAs, and having a brokerage account in addition to a savings account. I'm on track to save close to 60% of my income this year and pass $100,000 in savings in 2019. ![]() I recently turned 30 and now have $58,000 saved - about $30,000 is savings and the rest is in a rollover IRA and a Roth IRA. Save by taking public transportation even if you can afford to drive. Account icon An icon in the shape of a person's head and shoulders.
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