Interesting READ: 7 Ways to Prepare for Retirement in Your 20s

I actually signed up for my roth 401k before my first check and I'm glad I did. I don't miss the money at all and it's availability would have just resulted in lifestyle inflation. The only debt I have is school debt but I'm not really worried about that. My job just changed their 401k matching policy, it was up to 5% after a year of employment, now you have to be there for 3 years. :smh: I don't think I'll be there for that long.
 
Liltank0206 said:
3. Grow your income. People in their 20s do not make as much money as older folks, but their compensation has a lot of room to grow. If you work hard, you should be able to get promoted and grow your income quite a bit early on in your career.
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This is the most important to me. I look at it as I'm young and want to work the hardest I can now. I got friends going on trips, buying the bar, dropping money on cars, etc but I'm just saving and saving.

Only thing I need to do is find a position with more growth. My current spot has little room for advancement.

I'm going to end up working my 20s away but yolo.
 
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:pimp: Good thread
I'm amazed with how much people in their late teens and early 20's spend.. those years with little responsibilities are the perfect time to set up a comfortable lifestyle for the future.
 
picknroll24 said:
pimp.gif
Good thread
I'm amazed with how much people in their late teens and early 20's spend.. those years with little responsibilities are the perfect time to set up a comfortable lifestyle for the future.
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True. If you invest $2000/yr. for your first 7 years in the workforce, you'll have more total than if you invest $2000/yr. for the the rest of your life starting at any point after that. (given historical rates of return)
 
people that are in debt don't have a sense of urgency to squash it like they should. Wipe of the debt ASAP, then putting whatever money you can afford in the right place is key. Savings accounts should be for emergency funds only.

If you want the passive route, invest in a Roth IRA (try to max it out, $5k/yr most people can afford this by just cutting out simple things) and 401k at least up to company matching.

If you want a more active route, start by reading this book and start putting your money in stocks and bonds (50/50 to start):
700


People at my job that stack away $50k+/yr in their savings and don't do anything with it. Dumbest thing you can do if you can put aside those amounts
 
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crcballer55 said:
True. If you invest $2000/yr. for your first 7 years in the workforce, you'll have more total than if you invest $2000/yr. for the the rest of your life starting at any point after that. (given historical rates of return)
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what kind of contributions do you mean? does an IRA count or are you talking investments towards stocks? im completely investing illiterate but am trying to learn.
 
NazDrowie said:
crcballer55 said:
True. If you invest $2000/yr. for your first 7 years in the workforce, you'll have more total than if you invest $2000/yr. for the the rest of your life starting at any point after that. (given historical rates of return)
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what kind of contributions do you mean? does an IRA count or are you talking investments towards stocks? im completely investing illiterate but am trying to learn.
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An IRA is simply an investment vehicle that you put those stocks in. Even if it's not in an IRA, you won't get taxed on it until you sell the shares. With an IRA, you're contributing from post-tax dollars, so everything you put on there is tax free going forward and so is the growth.
 
I started saving when I was 18, signed up for 401k when I was 19, opened an IRA account at 20, and started investing in the stock market at 21. 

I don't have the nicest car, but it get's me wherever I need to be. I don't have the most expensive name brand clothing, but I'm clothed comfortably. I don't have credit card debts, but I have school loans that I need to pay back which should all payback at the end. I've never been to the most exotic vacation spots, but i'm content with my inner state adventures. 

All I'm saying is, live within your means and understand the difference between want and need. I'm in my mid 20s and with the amount of money I've saved, I should be able to support myself for a year or so in times of hardship. 
 
Absolutely love threads like this and cannot wait to get rid of my car and pay off my personal loans.
 
People at my job that stack away $50k+/yr in their savings and don't do anything with it. Dumbest thing you can do if you can put aside those amounts
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this. just saving up alone wont help you retire any faster nor will it make retirement anymore comfortable. the cliche phrase you have to spend money to make money is legit.
 
Good thread. I feel like a fool for signing a new lease next week for a year. SMh. Saving money is hard. At least for me
 
Joepac12 said:
Good thread. I feel like a fool for signing a new lease next week for a year. SMh. Saving money is hard. At least for me
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but if it is in your means then your fine man I didn't start this thread to make ppl regret the things that they have already invested in....... I just wanted to inform ppl in our generation about investing for your future endeavors instead of going out trying to impress the so called "friends" that we all have that will look at you differently because you dont have the newewst pair of J's or the newest wardrobe in your closet... Im 26 and have realized that not everything is in my range of spending and dont care about what my boys think if i can or cannot afford it... so I felt like sharing some of these things with my NT fam !!
 
So, if you are getting the employee match on your 401k, maxing out your roth IRA and have a solid amount in your savings, what other options do you have?
 
bhzmafia14 said:
So, if you are getting the employee match on your 401k, maxing out your roth IRA and have a solid amount in your savings, what other options do you have?
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If your employer offers a Roth 401K, try utilizing that instead of the 401K. If not, no big deal. Once your Roth IRA is maxed out, move to the traditional IRA and start contributing to that.
 
had to come back and read this for motivation cause since i posted it i made some changes and i can see the good in those changes :smokin :smokin
 
Can someone point me in the right direction?

I want to save $10k a year. For 5 years to put a down payment for a house, I just turned 24 last week, feel the need to be serious now about the future. Is it a smart move? Are there any other bases that I should cover first?

Is there something outside of the stock market that my money can yield interest? Low risk specifically?

Us bonds etc?

Haven't started an IRA nor 401k BTW. No car note, only 1200 owed on credit...
No car note, advice?
 
throwback1718 said:
Can someone point me in the right direction?
I want to save $10k a year. For 5 years to put a down payment for a house, I just turned 24 last week, feel the need to be serious now about the future. Is it a smart move? Are there any other bases that I should cover first?
Is there something outside of the stock market that my money can yield interest? Low risk specifically?
Us bonds etc?
Haven't started an IRA nor 401k BTW. No car note, only 1200 owed on credit...
No car note, advice?
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would it bawse better to cop along the way?

For instance ... save $10k, buy a small home...

After two years, rent the place out, take the $20k you've saved and buy a little larger home...

Two more years, cash out on both... you'll have a greater return on the $30k you put down in the two smaller homes ...

Sounds too simple when I read it aloud but... I think that's a good route to go...
 
Also, treasury bonds have THE LOWEST risk cuz they have almost no return...

With inflate, I read that investing a dollar in 1900 gets you $3 today... :x

You gotta take some risk to get a return that's noticeable ...

But I've noticed that there are opinions and arguments to be made on both sides when it comes to money
 
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