NT: Official Personal Finances Thread

[capital sb]

What city? Please dont say anywhere in PG bruh...

Once you can afford to buy a home then MAYBE I'd take your advice on where to purchase. I'll just say this and leave it be ,the homes in my community are gaining almost 5% in equity per year I'm not worried at all nor do I care about your opinion.

And if you are really from the DMV (which I know you're not) then you would know which county I purchased in.

 

[jjs]

saving roughly 35% of my net income.

part of it is to Travel (At least 1 major travel experience per year, next up is Vietnam on a bike in october).

but most of it is going into mutual funds / company matching contribution, etc. I'll let that money flourish a few years and then buy a condo or something.

At least that's the plan.

Also have ZERO debt.

 

[capital sb]

Report me and keep trolling it's all good

Edit: well MoCo is on the line by NW, MoCo isn't my preference . You also can't purchase a new construction home for

 

[jjs]

it's a great thread.

please let's keep it alive.

 

[capital sb]

Can't talk about money, investments , and goals without someone hating, but I got you.

I think this thread is great. It could turn into the official financial thread or something along the lines.

 

[jigsta05]

What do you guys do with the money you saving for traveling or other short term savings? I don't just want to put it in a savings account to collect half a percent of interest. CD's aren't that appealing either. Would putting it in a Vanguard mutual fund for a few months be worth it?

 

[utvol23]

Are we primarily talking about long term savings as in retirement or also including short term saving for vacations, home down payments, or emergency funds?

 

[capital sb]

@jigsta05  For my emergency savings I put it in an online high yield savings account. I prefer Barclays they have 1.0% apy no fees no minimums , the site is very secure and fdic backed. 

If you are saving specifically for a vacation or something of that nature I would look at Barclay's dream account. 

You can get 3.5% interest if you make deposits 6 months straight, 1.05% if you withdraw within those 6 months. They repeat this process every 6 months I think it would work for what you are looking for.

 

[sneaksoy]

Are we primarily talking about long term savings as in retirement or also including short term saving for vacations, home down payments, or emergency funds?

I think this thread really just started as a monthly income + how much of that you save, whether long term or short term. A few people have mentioned their emergency/cash savings + their retirement contributions as well.

 

[jjs]

@jigsta05
 For my emergency savings I put it in an online high yield savings account. I prefer Barclays they have 1.0% apy no fees no minimums , the site is very secure and fdic backed. 

If you are saving specifically for a vacation or something of that nature I would look at Barclay's dream account. 

You can get 3.5% interest if you make deposits 6 months straight, 1.05% if you withdraw within those 6 months. They repeat this process every 6 months I think it would work for what you are looking for.

All great alternatives,

but srs, if you're already getting something close to 1% in a saving account and you're only saving up for a few months or a year before the trip, it really makes no difference since you'll cash out all that money when the trip comes.

I put mine in a saving account that gives me 1,3%, but at that point, it's just to have it somewhere else than my checquing so i know i'm not spending it.

we are talking big mac money of interest, is it worth putting it somewhere else than your main bank / second bank?

 

[utvol23]

@jigsta05
 For my emergency savings I put it in an online high yield savings account. I prefer Barclays they have 1.0% apy no fees no minimums , the site is very secure and fdic backed. 

If you are saving specifically for a vacation or something of that nature I would look at Barclay's dream account. 

You can get 3.5% interest if you make deposits 6 months straight, 1.05% if you withdraw within those 6 months. They repeat this process every 6 months I think it would work for what you are looking for.

That Barclays sounded like a good idea but its limited to the deposits being less than 1K.

 

[capital sb]

@jjs136  I think it is worth it, because I don't have direct access to the online account. It takes a few days to transfer the funds over, so it gives me time to actually rationalize pulling out of the account. In my main bank it takes nothing but a quick transfer, and those funds are in my checking ready to spend.

My main and secondary CU's navy earns .23% apy and northwest federal (I did not know this) earns 2.28% apy. Wow I've been tripping I had no clue my apy was that high for that savings account. Lol now I will stop using my Barclays. Always wondered why I was earning so much interest with so little money in there.

@UTVOL23  

 yeah thats why I haven't used it 1K max per month is a no go.

Edit: just checked the rates and it is only up to $1500 at 2.28% on youth accounts. I've had this account forever , so I didn't know it was a youth account.

 

[jjs]

@jjs136
 I think it is worth it, because I don't have direct access to the online account. It takes a few days to transfer the funds over, so it gives me time to actually rationalize pulling out of the account. In my main bank it takes nothing but a quick transfer, and those funds are in my checking ready to spend.

that's a good reason if you want to make sure you don't spend that bread.


i personally have very good control over my savings (never spend it on anything else than the goal i set myself) and i'm earning 2,5% until august (promotion on a new saving account at my bank), after i'll get 1,3% when my balance increases by 200$ during the month.

 

[inshoekid]

I bring home about 10k a month between my salary job and my 4 Rental properties.

Max out my 401k and mine and my wife's IRA. So that's about 2k, 500 in both of my kids bank account each month(3 year old and 6 month old). As little as possible is saved after that, we have a sizeable amount already in liquid savings so I feel no need to increase it.

After our expenses we usually have 3-4k left which goes to extra payments on rental properties and our personal house. Finance new rentals with equity from paying down current properties. Working on buying a 28 unit apartment building in Louisville right now. Great price with 9% cap.

Saving money is great, but you must put that money to work for you. My goal is cash flowing 20k a month from rental properties in the next 8 years. With all properties paid off in the next 13 years. That will put me at 45 and able to retire with a rental income that far exceeds my needs. Plus a 401k and Ira balance at hopefully 1 million plus with another 20 years before I could touch it so that should see a substantial increase over that time line. Living in the midwest makes real estate a much easier market to enter. I have paid well under 100k for each of my 3bed/2bath homes in decent areas.

 

[miamib30514]

Maxing out my 401k and ROTH then putting 15% of what's left over into a liquid emergency/travel account.

Invested heavily in market, lightly in real estate. 

 

[capital sb]

@INshoeKid  congrats on your early success man ! I am looking to do the same as you with real estate properties , PM sent .

You are definitely on the right track for financial independence. Wish you much more success. 

 

[Kaleo15]

I bring home about 10k a month between my salary job and my 4 Rental properties.

Max out my 401k and mine and my wife's IRA. So that's about 2k, 500 in both of my kids bank account each month(3 year old and 6 month old). As little as possible is saved after that, we have a sizeable amount already in liquid savings so I feel no need to increase it.

After our expenses we usually have 3-4k left which goes to extra payments on rental properties and our personal house. Finance new rentals with equity from paying down current properties. Working on buying a 28 unit apartment building in Louisville right now. Great price with 9% cap.

Saving money is great, but you must put that money to work for you. My goal is cash flowing 20k a month from rental properties in the next 8 years. With all properties paid off in the next 13 years. That will put me at 45 and able to retire with a rental income that far exceeds my needs. Plus a 401k and Ira balance at hopefully 1 million plus with another 20 years before I could touch it so that should see a substantial increase over that time line. Living in the midwest makes real estate a much easier market to enter. I have paid well under 100k for each of my 3bed/2bath homes in decent areas.

This is the exact approach me and wifey is going for.

Hopefully it pays off as well. We are both still very very young (20s) so we don't see the profits yet.

The only money we see is from our job, thankfully we having good paying jobs.

We are currently trying to do business with this guy I know to either invest in apartments or a home care.

 

[water runs dry]

Great thread. It looks like you guys have great ambition and have made good decisions with your money. As for me, I'm 26 and have had some setbacks here and there and have not been great at all with my money. I struggle to save, but I try. Fortunately I'm close to finishing a dental assisting program and hopefully I can begin to save properly after hopefully landing a job. But I just wanted to ask if there's any advice or books you guys can recommend for me to read up on saving/budgeting/investing/finance, etc. because I know nothing at all. Thanks.

 

[inshoekid]

Start as young as you can. I bought my first rental when I was in college. Rented it out to my friends and I lived there for free. Parents co signed the loan when I was 20 so I could buy it. I still have that house renting it to college students in Bloomington, IN. Paid it off last year on my 31st bday. 30 year loan knocked out in a little over 10 years. I didn't need the extra rental income so I always paid down the principle every month.

Plus renting to college kids always have parents co sign so the parents are responsible for damages and rent as well as making each person in the house sign the lease or they can't reside in the property.

As far as a partnership make sure you have all the details I refuse to be in any partnerships. If I can't figure it out myself I don't do it. Plus I'm super anal, so it just wouldn't work out.

@beezygotsole I'll check the pm and get back with you,

 

[moderndarwin]

When I start working ill be making about 5,200 a month. Any idea what that would be in take home after taxes and 401k?

Expenses will be 2600 for rent, 250 car, 50 insurance, 450 student loans, 180 gas, 700 food, 300 transportation, 200 credit card debt. So, about 4730 lol.

FML.

 

[Kaleo15]

Start as young as you can. I bought my first rental when I was in college. Rented it out to my friends and I lived there for free. Parents co signed the loan when I was 20 so I could buy it. I still have that house renting it to college students in Bloomington, IN. Paid it off last year on my 31st bday. 30 year loan knocked out in a little over 10 years. I didn't need the extra rental income so I always paid down the principle every month.

Plus renting to college kids always have parents co sign so the parents are responsible for damages and rent as well as making each person in the house sign the lease or they can't reside in the property.

As far as a partnership make sure you have all the details I refuse to be in any partnerships. If I can't figure it out myself I don't do it. Plus I'm super anal, so it just wouldn't work out.

@beezygotsole I'll check the pm and get back with you,

Quoted for reference. I actually declined a few college students when I rented out my other property.

When I was younger and living with my parents. There was a College house next to us, they were Cops called there every weekend, neighbors complaining, and depending on your HOA, if there were consistent violations, they would fee the Landlord.

So I just didn't wanna possibly deal with the headache with College kids.

But like I said, I'm in my early 20s, so I'm bound to learn from my mistakes.

 

[broncos19dm]

Interesting thread. 

 

[capital sb]

@ModernDarwin  woah 2600 for rent? Where do you live. If possible try to cut that down to atleast $2000 , personally I wouldn't pay more than $1200/mo on my mortgage/rent. 

From what you are saying you wont have enough to pay all of those bills 5200 after tax will be close to 4000 or less after taxes. You can check out your exact paycheck on a site that calculates your paycheck with taxes and 401K factored in. Here is the link 

 

[Chopper]

Great thread. It looks like you guys have great ambition and have made good decisions with your money. As for me, I'm 26 and have had some setbacks here and there and have not been great at all with my money. I struggle to save, but I try. Fortunately I'm close to finishing a dental assisting program and hopefully I can begin to save properly after hopefully landing a job. But I just wanted to ask if there's any advice or books you guys can recommend for me to read up on saving/budgeting/investing/finance, etc. because I know nothing at all. Thanks.

The classic go-to is Rich Dad Poor Dad. Everyone should read that book. 

 

[af1 1982]

Just graduated but I ran some quick numbers for when I start working in a month:

$65k salary
Roughly $4k a month after taxes
Plan on saving $2.4k in investments
Save whatever I don't spend from my food/spending budget