I'm 24, make about 42,000/yr and my expenses/savings are as follows:
other investments: 2000
big monthly expenses/income :
rental income: 550
mortgage: 1200 - 65/month additional payment
I'm currently putting away 18% of my salary a month- 12% pretax 6% roth. Goal is to put an additional $5k a year into an additional roth fund. An additional 20% comes out of aftertax income for personal investing.
I'm looking at other investment options- seriously considering an investment property. I'm also looking at cutting spending and expenses wherever possible. Any ideas or suggestions? Am I on the right track towards financial independence?
At 24 you're doing great man! You're on the way to being really successful! In this market rental/investment properties might be a good idea. Especially if you can get foreclosures.
Check out this thread
for ways to save money.
I. Suggestions for Savings Accounts:
I have Emergency Funds Accounts for my E-Fund.
Savings - Emergency raise to $10,000? (3-9 months of expenses?)
Savings - Purchases? $2000 (New laptop? Golf Clubs? Furniture? Big Screen TV? What's your hobby?)
Savings - New Car $5,000? $10,000? (Used?)
Savings - New Roof/Central AC Unit $20,000? (Needs to be repaired/replaced every 10-20 years or so I hear?)
Savings - Car Repairs/Mantenance $1000?
Savings - Medical? $2,000? (Our goal is to have enough to meet our deductables for each year)
II. A few questions:
1. When was the last time you got a quote for car and home insurance?
2. Any way to cut costs on your cable/satellite bill? Have you tried Netflix or Redbox? Or the local library for movies?
3. Have you considered brown bagging it (taking food from home) to work a few times a week?
4. What kind of rewards do you have on your debit/credit cards?
5. When was the last time you called your cell phone/internet provider and asked for a promotion/discount?
Hope this helps