Seems like you have everything laid out and a great plan! Just remember you only live once so set a small fund beside to have fun. Doesnt have to be much but enough for you to do a hobby or go to a outside event and such. GOOD LUCK ON EVERYTHING
Honestly, I'm really lucky to have both available (saving aggressively and having fun), and I definitely agree that you gotta live life while it's happening instead of just saving for a day that isn't guaranteed. My 2nd paycheck is usually where the "fun money" is allocated, so watch out for that in 2 weeks or so if you're interested :)
Depending on what your needs are for a smartphone, you can get an older refurbished model for the cheap. I personally got a pixel 4 refurbished from Walmart for $150 or so. Saves me from financing a phone, it's plenty fast enough for youtube, texting, and calling, and if it breaks I'm not too stressed over it since it didn't cost a whole ton to begin with. I'm very anti-four-figure-phone-pricetag. Even though it's within my means. I'm also a young software engineer learning about finances and trying to find ways to boost my earnings and retirement savings. I very much look forward to what else you post!
Great job being mindful of retirement contributions at your age. You might want to pad your emergency funds up more to help you avoid getting hit by new things that come up. Sorry about your health emergency. That seems to be the one that can really wreak havoc.
Totally agree! I actually have (roughly) 6 months of emergency savings currently sitting in a money market fund. I wouldn't be as confident floating some payment until next paycheck otherwise haha Thank you for the kind words :)
I recommend decreasing your 401k contributions to fund a Roth IRA. Do whatever math you need to do to make it work, but the 2024 limit is $7,000 - $135 per week.
That's a good point. I (luckily) got some help this year so it isn't _as_ big of a concern (see my most recent community post) - but I definitely agree. Will rebalance as needed.
They're pretty great so far - although I haven't had to call in for any issues. The only annoying thing is that you have to call in to get a credit limit increase, and even with my stats, they could only increase it to $5000 (from $4000), which is fine but gets a bit iffy when you have 2 rent payments stacked at the start of the month before it gets auto paid. Plus, I'm in the DFW metro so it's not like I have many choices for airline transfer partners 😅
Forever alone :( But jokes aside I'd definitely have to adjust if/when I have a partner to account for our combined expenses/earnings. At the moment though, the only person I need to worry about is myself.
I’m a little confused. You’re wanting to retire in your 30s but only invest in 401k and HSA? Why no brokerage account you can access with no penalties before 60?
Good question! 1. There _are_ ways of accessing the money we invest into our 401ks (HSAs not so much) prior to 60 without penalty. I might go over them in a future video but you could also find it online. 2. I'm lucky enough to have the money to max out pretty much everything and still invest afterwards. So I might as well invest it into tax-advantaged accounts before my standard brokerage.
Thank you! Right now, my projections are suggesting that I'll be _somewhere_ in the range of 500k or so at 30 with this pacing. I think I'll be a bit more conservative though with my retirement - I think I'm aiming for a mid-30s to early 40s at the moment (somewhere in the realm of $1.5-2.5MM). Of course, partner and/or kids would dramatically change how this looks 😅
@@raymondwzeng I currently save about $1000 a month into retirement (which includes my employer match dollars). I won’t retire at 40, but I should have a couple million come 60. It’s nice to see someone else so interested in saving though. I don’t know many people with that passion. I will be rooting for you. As far as a partner… you either gotta find yourself one hell of a unicorn, make more money, or change your savings numbers😅
You really need to reduce your 401k contributions to just get your employer match; Roth 401k best choice in your tax bracket. You will have tax free withdraws in retirement and not have your Social Security taxed; all other income is calculated in taxing Social Security You need to build up your savings to 6 months of living expenses. Once that is done you need to contribute to a Roth IRA; you have more invest choices than a 401k also can contribute in the next tax year until you file your tax return. After rent what is your biggest spending category? Some credit cards have merchant categories you earn more cash rewards. Like Chase until March 2025 5% on Lyft rides, Capital One Savor no annual fee 10% on Uber rides, 3% entertainment, dining. Where do you get most of your groceries? If Walmart their is a Capitol One walmart credit card you earn 5% in store shopping the first 12 months 5% on Walmart delivery and pick up; 2% in store after 12 months.
A lot to think about. In terms of Roth vs. Traditional 401k, I've looked into it myself and am still not exactly sure what would be the best - I recall hearing about splitting between the two - but at the current moment, I've decided that I'll do the taxes when it comes time to do so. I won't be withdrawing from my 401k as most folks would be anyways as I plan to retire in my 40s at the latest. Roth IRA is partially funded thanks to some savings and a gift from family from last year. I'll talk more about this in the 2nd half January Transfer Tuesday. I have my emergency fund fully funded. My biggest spending category after rent is groceries/necessities at $400 (budget) per month. I don't exclusively shop through Walmart (occasionally, Uber Eats when they give me a promo or some other places when I'm with friends), but it would be an interesting idea to max the cash back when I do. Especially since it's a $0 annual fee. Thanks for the comment and suggestions :)
Seems like you have everything laid out and a great plan! Just remember you only live once so set a small fund beside to have fun. Doesnt have to be much but enough for you to do a hobby or go to a outside event and such. GOOD LUCK ON EVERYTHING
Honestly, I'm really lucky to have both available (saving aggressively and having fun), and I definitely agree that you gotta live life while it's happening instead of just saving for a day that isn't guaranteed.
My 2nd paycheck is usually where the "fun money" is allocated, so watch out for that in 2 weeks or so if you're interested :)
You got me intrigued, let see where this goes.
Depending on what your needs are for a smartphone, you can get an older refurbished model for the cheap. I personally got a pixel 4 refurbished from Walmart for $150 or so. Saves me from financing a phone, it's plenty fast enough for youtube, texting, and calling, and if it breaks I'm not too stressed over it since it didn't cost a whole ton to begin with. I'm very anti-four-figure-phone-pricetag. Even though it's within my means.
I'm also a young software engineer learning about finances and trying to find ways to boost my earnings and retirement savings. I very much look forward to what else you post!
Great mindset, Raymond - good luck!
Great job being mindful of retirement contributions at your age. You might want to pad your emergency funds up more to help you avoid getting hit by new things that come up. Sorry about your health emergency. That seems to be the one that can really wreak havoc.
Totally agree! I actually have (roughly) 6 months of emergency savings currently sitting in a money market fund. I wouldn't be as confident floating some payment until next paycheck otherwise haha
Thank you for the kind words :)
I recommend decreasing your 401k contributions to fund a Roth IRA. Do whatever math you need to do to make it work, but the 2024 limit is $7,000 - $135 per week.
That's a good point. I (luckily) got some help this year so it isn't _as_ big of a concern (see my most recent community post) - but I definitely agree. Will rebalance as needed.
I wish you luck on your journey💲
Thoughts on the BILT card ? Saw you were using this to pay rent. Heard they had an issue on fraud.
They're pretty great so far - although I haven't had to call in for any issues.
The only annoying thing is that you have to call in to get a credit limit increase, and even with my stats, they could only increase it to $5000 (from $4000), which is fine but gets a bit iffy when you have 2 rent payments stacked at the start of the month before it gets auto paid.
Plus, I'm in the DFW metro so it's not like I have many choices for airline transfer partners 😅
Thanks for sharing. Do you have a budget for a GF -> Wife -> Family?
Forever alone :(
But jokes aside I'd definitely have to adjust if/when I have a partner to account for our combined expenses/earnings. At the moment though, the only person I need to worry about is myself.
@@raymondwzeng you're doing awesome! Keep it up!
I’m a little confused. You’re wanting to retire in your 30s but only invest in 401k and HSA? Why no brokerage account you can access with no penalties before 60?
Good question!
1. There _are_ ways of accessing the money we invest into our 401ks (HSAs not so much) prior to 60 without penalty. I might go over them in a future video but you could also find it online.
2. I'm lucky enough to have the money to max out pretty much everything and still invest afterwards. So I might as well invest it into tax-advantaged accounts before my standard brokerage.
You'll do great kid.
❤❤❤
Damn saving $3000+ a month? Impressive. How much money do you personally want to retire by 30?
Thank you!
Right now, my projections are suggesting that I'll be _somewhere_ in the range of 500k or so at 30 with this pacing.
I think I'll be a bit more conservative though with my retirement - I think I'm aiming for a mid-30s to early 40s at the moment (somewhere in the realm of $1.5-2.5MM).
Of course, partner and/or kids would dramatically change how this looks 😅
@@raymondwzeng I currently save about $1000 a month into retirement (which includes my employer match dollars). I won’t retire at 40, but I should have a couple million come 60. It’s nice to see someone else so interested in saving though. I don’t know many people with that passion. I will be rooting for you.
As far as a partner… you either gotta find yourself one hell of a unicorn, make more money, or change your savings numbers😅
You really need to reduce your 401k contributions to just get your employer match; Roth 401k best choice in your tax bracket. You will have tax free withdraws in retirement and not have your Social Security taxed; all other income is calculated in taxing Social Security You need to build up your savings to 6 months of living expenses. Once that is done you need to contribute to a Roth IRA; you have more invest choices than a 401k also can contribute in the next tax year until you file your tax return. After rent what is your biggest spending category? Some credit cards have merchant categories you earn more cash rewards. Like Chase until March 2025 5% on Lyft rides, Capital One Savor no annual fee 10% on Uber rides, 3% entertainment, dining. Where do you get most of your groceries? If Walmart their is a Capitol One walmart credit card you earn 5% in store shopping the first 12 months 5% on Walmart delivery and pick up; 2% in store after 12 months.
A lot to think about.
In terms of Roth vs. Traditional 401k, I've looked into it myself and am still not exactly sure what would be the best - I recall hearing about splitting between the two - but at the current moment, I've decided that I'll do the taxes when it comes time to do so. I won't be withdrawing from my 401k as most folks would be anyways as I plan to retire in my 40s at the latest.
Roth IRA is partially funded thanks to some savings and a gift from family from last year. I'll talk more about this in the 2nd half January Transfer Tuesday. I have my emergency fund fully funded.
My biggest spending category after rent is groceries/necessities at $400 (budget) per month. I don't exclusively shop through Walmart (occasionally, Uber Eats when they give me a promo or some other places when I'm with friends), but it would be an interesting idea to max the cash back when I do. Especially since it's a $0 annual fee.
Thanks for the comment and suggestions :)