-Jr.Engineer. Repairs - this will be a constant thing. Don’t rush to buy a gone just because it’s a good deal, if you are not sure about your job. -Paying student loan for Msc. It is important to save and invest for the future but you got to live and enjoy life right now. I have a ~$70k salary - after taxes, 401k, HSA, rent, utilities, groceries, etc., I usually take home between $1-2k/month (depending on how good I am being, etc. Got a 30yr at 3.5. Credit score only 680. Saving money should almost always come before investing money. Popular benchmarks will tell you to have the equivalent of your annual salary banked by age 30. By Michelle Castillo March 7, 2012 / 4:05 PM / CBS News (CBS News) - If you ever get yelled at for trolling the Internet too much, here's one reason to … ), upcoming medical expenses, expected life changes, etc. You should also factor in things like your car (is it reliable? Join our community, read the PF Wiki, and get on top of your finances! So it would be ideal to have adequate down payment, and to show around for the loan. To reiterate, I don't know approximately how much I should have/keep in an emergency fund, I don't know how much % down I should look to save for a house. Press question mark to learn the rest of the keyboard shortcuts, http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/. Before making that decision, aim to save at least three months’ worth of expenses for emergencies, save 10% to 15% of your income for retirement and pay off your credit card balance each month. Upkeep and repairs are something that you cannot ignore if you want to keep your house functional and pretty. Start with your emergency fund - make sure you don’t touch that money for downpayment. Unfortunately, it seems like I am quite a long way away from my dream, but that's okay -- I'll keep taking it one step at a time. Nah, screw that. If you're earning $50,000 per … As long as you're happy with the life you can afford at that savings rate, this is exactly right. Let's break this down by goal: 1. How much do you make, and how much is your rent? Good question! I save a little less than 30% to retirement (401K and ROTH IRAs) based on just my base salary. Now, your choice of investments leaves something to be desired. In my opinion, you need to find a healthy balance between living in the present and saving for the future. I bought my house for 58k I came to the table with 10k. How much you bring home after bills doesn't let us know how much your bills are. This all makes sense. How Much You Should Save. Join our community, read the PF Wiki, and get on top of your finances! For 2020, the maximum you can contribute is $19,500. But saving is good. But what if we’re actually saving too much? As the main disk, C Drive is mainly used for storing system files, programs, temporary files, etc. But I rather choose to buy the stock of the firms I trust than buying a gadgets that won't really increase my quality of life but fun. Its not fun to invite your girlfriend over to your parents house. ), I currently have ~$30k in easily accessible assets (savings, checking, personal stocks - not 401k/HSA). But spending for the sake of spending? However, I have learned to prioritize the things that I get the most enjoyment out of and spend more in those areas and less in the ones I don't care as much about. Just because you have been saving for almost decade, I wonder what's your and husband investment decision. In a few decades from now, when you are retired comfortably, tell them they are too old to be working. To be completely transparent, if I change companies I would absolutely be getting a raise, somewhere likely between $85-100k. Considering the greater Seattle area, there are … These things will literally break your bank if you don’t plan for them, so I would recommend the home warranty for the first 2-3 years while you build up your funds. Most of us save (or should save) for four reasons: Emergencies (job-loss, illness, pandemics) Wants & Goals (new home, kids going to college, new car, trip) Retirement; Security; In the article Americans … Spending more intentionally shouldn't be the goal but having more fun is a reasonable goal. That being said, money is a tool, and prioritization is the game. Your friends say that you should spend more? However, if you are 50 and your household income is … a savings rate of 50% well invested in diversified index funds means you could retire in as few as 16 years. You're not paying for rent/utilities/groceries, so it sounds like you've got 30-40% of your income to spend on your car/car-related expenses (assuming those are not also covered by your family) and...whatever you want. My parents are in their late 40s, and make about 150k a year combined. Right now you are living with family. No outcomes related home. You then need to calculate your debt-to-income ratio (DTI). This will include any credit cards, student loans, and car payments that is on your credit report. ... help Reddit App Reddit coins Reddit premium Reddit … For years, the rule of thumb has been to replace 70 to 80% of your working wages to live comfortably in retirement. However, after 2 years, I decided to make moving out a priority. Do not worry if you have … Work backwards instead. Retirement. Retirement. Ask them about that in 20 years, when they are supporting a family and again in 40 years when they are starting to worry about retirement money. Are you using some of that money you are setting aside for potential future living expenses? I know there are general rules of thumb for how much rent you should be paying (One weeks pay, not more than 30% of paycheck, … My friends say I am too young for investing and should spend more. Big help! With interest rates as low as they are, PMI rates have followed suit. It will give you an idea about the various options as well as pros and cons of each area. How Much Should I Save vs. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Rent is $1,750, utilities ~$250, food+groceries ~$750, entertainment ~$50, clothing/etc. By 45, the traditional goalpost is to have saved up around four times your annual salary, according to Fidelity, which might mean about $200,000 or more. (%20 of monthly salary). If you start later, the percentages add up quickly. 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