I recently turned 30. My salary is pretty bad. I make about half of the US average but I also live in a pretty cheap apartment. I could probably save 500 dollars a month. I did start to invest seriously about 5 years ago so I have around 30K in savings which isnt too bad. I am studying for a bachelors. Looks like I will have a degree by 35 and start earning more than the average. Being rich by 65 isnt really something I am aiming for. I want financial freedom. Right now I am somewhat free. I live cheap, frugal. Almost no expenses. I am maybe the only debt free person I know. I plan on taking a loan soon and buy an apartment instead of renting. Just seem smarter. And I am probably renting out a room. I can then use that money to pay down the loan. Seems like a solid strategy.
i turn 34 march 28th of this month.....i had a rough life but this year is where i make the changes ...right now i make about 60 grand a year but im suppose to be the supervisor within 3 monthes and i should make 75 k or 80 k atleast starting out....but thats my goal save some emergancy money and invest anything i can on creating more wealth.....doing anything i can to get atleast a million in the next 5 years ... pray for me on my journey im about to give it hell !!!!!
I'm 34 and... I haven't figure out anything, or at least that's what I feel. It has been rough not gonna lie. I'm investing agresively tough, about 70% of my monthly earnings. But that only sums 50 usd so, yes, not easy. Thanks for the cheers too.
Hey Money Guys- What all consists in a savings rate? Is it specifically Investing, Cash, Retirement or do you include mortgage in that as well as, along with non-credit card debt (i.e. Student loans)? Love the show!
It's not that people can not see the power of compound interest. It's actually that people would rather have that cash as liquid as possible. Amongst us less fortunate people, being able to pay to participate in some nonsense is flexing. Kind of like Elon paying his taxes just to get the irs of of his back. He's just flexing. He could have easily deferred his taxes for 5 or 6 more years.
The saving goal you are saying, 20 to 25%, does that discriminate between taxable and non-taxable accounts? As in can you add your roth (taxed) and 401k (taxed later) contriibutions to get your savings rate?? Or is there some adjustments?
$45,000 a year is the average salary for people in their 30s???? I am 33, I have been in the workforce since I was 15 years old, and I have yet to make over $30,000 a year. Right now I make around $25,000 a year and I have my first child on the way. Unfortunately, the only part of the video I can relate to at the moment is the "chaos" of being in your 30's. I wasted so much time partying, and working shitty dead end jobs (line cook), I am now without skill, money, or direction. Ive been watching videos like these, and reading books on financial literacy (rich dad poor dad, money: master the game, etc.), and although I do feel motivated by the education, I still feel like I have no direction when it comes to potential career paths. The only actual Job I know is being a line cook, which I dont even enjoy. Im so lost.
When talking about saving 20-25%, should I be doing that myself or do I count what my employer is putting in? If I can get that answer you guys would be helping me big. Thank you and keep up the great work you guys do for all of us.
I would shoot for 25+ percent all of your own money not including any matches. Once you do that and stick with it consistently, you’re doing well. Honestly, the people doing very well with this are in the 30-50% savings rate range.
I just turned 30 and I am happy to have come across your video. When you give numbers for what a 30 year old should be saving, what kind of account would you recommend that these savings go into to grow at the rate that you guys have predicted?
Check out the free Financial Order of Operations (FOO) www.moneyguy.com/resources - this will give you a good head start on when and where to put each dollar 👍
I'm 24 I make 4k a month after taxes. My bills I keep at 1k a month so I easily save 2.5k a month and still have 500 for some fun. I just hope I can keep this up tell I turn 30.
I’m 34 and currently saving 33.2% of my net income which is 250 a week I’m hitting it pretty aggressively I just hope it’s enough I’m living on peanut butter sandwiches and soups
Save your money in an index of the stock market. Roth or Traditional IRA, 401k if your job offers it, then a taxable account. Use a broker like Fidelity or Vanguard.
Thanks for the overall content you put out. But couldn't this info be true for any age/income? I.e. Pay yourself first and live below your means. I did like the contribution analysis for the age! I'll watching for good information.
Quick question! I work in public accounting, and I have an online LLC on the side. Can I open an SEP IRA for my LLC and have a 401k through my employer?
Alex Smith you can, but talk to a tax advisor or cpa that works more with such plans. Maybe some ground work on your part. You want to make sure the sep is setup and managed correctly. You could get into some troublesome tax liability. I am not a advisor or cpa of any sorts.
$134K salary for a 37K car? That sounds a little too frugal, no? Trust me, I am a financial mutant, but I thought as long as you're not getting a car that's more than 35% of our gross anunal income, then you're okay. With that example 134,000 x .35 = $46,900 Is my thinking wrong?
I’m so glad I found this place! I’m 341/2 with 3 children and I have a BS degree and a Carnote... I’m renting a house for 1,800 a month and this is miserable 😩
I don't agree with the philosophy of "differed gratification", i.e. sacrifice now, so you can live it up in the future. I am in my 40's, and have seen countless friends and acquaintances die over the years. They scrounged by in their early 20's and 30's and died in car accidents, or of heart attacks with full bank accounts and investments. They left money behind for their relatives, yes, but no lasting memories of lives well-lived, and vacations in the sun, or cruising in that nice shiny car. Honestly, who cares if you have that nice shiny car and Winnebago in your 60's when your body won't allow you to enjoy a walk in the forest, and you can't throw the ball for your pure bred dog, which you differed buying when you were 30? Money in your old age won't buy you happiness, or fix your aging body. There are better ways to become wealthy, which don't necessitate sacrificing your youth, why don't you teach these methods?
Odds are, you will live to a ripe-old age. Plan accordingly! As for teaching the other ways... do you mean get quick rich schemes - there are plenty of those already out there. We are dedicated to teaching the “real path” to wealth for the 20% that can go beyond common sense. Thank you for the watch and comment 👍
Also normal people don’t die of heart attacks in their 20s and 30s. Fish Fin-atic be spinning some fish tales to make excuses for his lack of diligence in saving.
@@FrugalTeacherFI Well not everyone wants to be old and rich!!! Many are looking for a faster way to live ok asap. Their method is 20-30 years and for many that is almost an entire lifetime.
I always forget, do we need to save 30% after taxes or before taxes. Example : someone makes $100k a year, $70k after taxes. Do we save 30% of the 100k or 70k?
Why this comes up when I type in how should I be investigating my money in my 30s I have no idea. This is a terrible video for what I’m looking up. If I wanted to know what not to do I would watch this.
They seem to think people are gainfully employed. Plenty make too little to buy everything and others buy more than they spend. But people can't do money wrong b/c not one owes anyone else access to money.
