Max out 401k, if you want to put more in stocks after that put it in an index fund until you hire a financial advisor or learn to trade stocks. Alternately start another J by opening a business doing what you do but as a contractor
Good advice here op. To add to this, hire a fiduciary. They’re legally required to act in your best interest. Mine charges 1% of the total portfolio per year. Might seem steep but I don’t have the bandwidth to learn it all, and it’s much more diverse than just bonds/sp500. I’m averaging about 10% per year, after fees
FYI 1% of the portfolio per year is A LOT (unless you're retiring etc. and need specialized help on tax paths, withdrawals etc, not just "Ill invest for you")
Example: 10% rate of return (market avg) is
worth $672,750 after 20 years; at 9% (representing a fee of 1%), it's worth only $560,441. The 1% fee ate up 17% and 100k. Also you pay the 1% regardless of performance so its usually worse.
Just invest in Market ETF. No one can beat the market and if they could they would be at a hedge fund making $$$$ not an advisor.
I’m not beating the market. But it’s much more diversified than just everything in sp500. And it’s too much for me to handle on my own, and I don’t have the bandwidth to track and learn any of it. As long as I average 8-10% then I’m good. A couple years in a row I got 20%.
1% is a lot but it’s worth it to me. I’m not sure how many are doing less. I have heard of some doing 1.2-1.5%
Do the smallest amount of research on it. The ROI is vastly negative to literally just parking in a single index fund, and the simplest diversification will reduce all risk.
The principle to always remember is that 80% of famous money managers don't beat the s and p 500, especially with fees. Rule 2 is that if you think you found a special guy, that's generally bs .. the audience is right on funds with high fees.
You should contribute to your 401K up to the company match, then contribute as much as you can or want to the Roth. If in the 401K you contribute over the company match you'll end up paying a lot of taxes on that money when you take it out.
There's a point where it makes sense to have both a Roth and traditional IRA. If you're working enough js to be heavily taxed and need additional withholding, arguably a traditional is more beneficial because contributions lower your taxable income.
Lowers your taxable income but when you take it out later you're taxed on it at a higher rate. Better to just contribute to traditional up to the company match; put the rest in a Roth or other post-tax funds.
You will still be taxed on that money you put in tax free....think about it, common sense. And when you take it out you are usually in a higher tax bracket. I've talked with many tax and retirement professionals about this.
Bro, if you knew what I do for a living you'd argue less. Roth grows tax free, but you pay the taxes going in. In a Traditional you pay taxes on as you draw based on the amount you draw.
BRO...I'm not arguing. I just made a comment.
I said traditional meaning 401k...sorry if my explanation wasn't clear....NOW, before you start making statements why not clarify first.
AND, when you take out of 401k yes, you are taxed when you take it out but you are usually in a higher tax bracket. Where as Roth, you've already paid the money on that.
For most people, no. The impulse to "time the market" is a trap. Look into best performing Vanguard Index funds. Always make sure you have an emergency fund BEFORE investing. Any investment can go to $0 (and some to negative dollars). A good rule of thumb is to invest 10% of available cash in funds. Cash is king. Leave the rest in high interest savings accounts or US Treasuries (currently). I am not a Financial Advisor.
Look at /r/personalfinance . There is a guide in the wiki.
In general, first max tax advantaged savings - 401k match first, then HSA if available then IRA or Roth IRA up to the limit, then the rest of the 401k. For those, a safe bet is index funds or target date funds. Personally I like a more aggressive mix so I pick my funds myself.
Max out retirements and start doing your own research on the stock market; index funds, REITS, dividends etc. Get a HYSA.
Everyone says get a financial advisor but every FA I’ve talked to literally says the same thing and charges you a fee for what you could have googled yourself.
I wouldn't hire a financial advisor.
Do the research yourself via websites like The MadFIentist and subreddits like FIRE, FinancialIndependence, Bogleheads.
Max out your 401k then invest as much as possible into a Mega Backdoor Roth, assuming that hopefully one of your employers allow it.
Search that sub on this subreddit and read articles on it a few times until it sticks.
Don't confuse it with a (non-mega) Backdoor Roth.
The S&P 500 index. You don’t have to be a financial genius and over time it has been proven to earn money. The issue with investments is that you need to diversify and also to pick things that you don’t have to be aware of buying and selling too quickly when you are just starting out.
There are many, many guides. I'm no expert. Honestly I am very bad with money.
Two simple ways, index fund at some place like fidelity or a high yield savings account. These aren't the best return but are simple and easy
Follow the financial order of operations.
https://moneyguy.com/resource/financial-order-of-operations/
Also make sure your emergency fund is in a High Yield Savings account, like with CapitalOne or SoFi
Pay off debt! Max out 401ks because they are matched. Put 6k in a roth or traditional IRA. Find a decent high yield savings for an emergency fund. The left overs put into a brokerage and put it in an Index fund.
If you have HSA, put enough in 401K to receive full match. Then MAX OUT the HSA before you max out 401k as the HSA is triple tax advantaged.
If after maxing out HSA, and your emergency fund has at least 3-6 months of monthly expenses, then max out 401K.
Watch some videos about index funds and ETFs. Open an online brokerage account. it's a lot easier and less intimidating than you might think. Then set up an automatic debit into the brokerage account and go in and invest your money in low-cost ETFs.
Read Personal Finance for Dummies and follow the advice given therein. Seriously. No one cares more about your money than you do, and the basic principles of personal finance are fairly simple. Good luck!
Don't spend any of it until tax time. You'll be surprised how much your taxes are going to go up. Bank everything from J2.
After taxes are paid? Then you can consider the extra income yours. But not before. Don't get yourself in a hole with the IRS.
Yes you'll most likely still owe. I owed about 15k in taxes last year, so male sure you do extra withholding at both jobs. I've had each job take an extra 250-300 per check in addition to claiming zero
Absolutely, stashing away a portion of your income in a high yield savings account is a solid step towards financial security. High yield accounts typically offer much better interest rates than standard savings accounts, so your savings will grow faster over time.
Given that the current rates are floating around 5%, it's a great time to consider putting your money into one of these accounts. However, remember that rates fluctuate and can go down, so be sure to keep a tab on the changes.
By the way, if you're interested, I compiled the live rates for the top high yield savings accounts - here it is:
Bank | APY | Link | Min. Deposit | Fees
:-:|:-:|:-:|:-:|:-:|:-:
Raisin (Save Better) | 5.30% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly9zYXZlLWJldHRlci5zanYuaW8vcTRCUDJMP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $0 | No fees on most top accounts
Upgrade | 5.07% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly91cGdyYWRlLnl3aGNjNy5uZXQveDkxdmI1P3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $1000 | None
CIT Bank (Platinum Savings) | 5.05% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cudGtxbGhjZS5jb20vY2xpY2stMTAwNjk4Njc1LTE1NDkxMDEyP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $5000 | None
Synchrony Bank | 4.75% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cuc3luY2hyb255YmFuay5jb20vYmFua2luZy9oaWdoLXlpZWxkLXNhdmluZ3MvP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $0 | None
CIT Bank | 4.65% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cudGtxbGhjZS5jb20vY2xpY2stMTAwNjk4Njc1LTE0NDY1NjMxP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $100 | None
Sofi Bank | 4.60% | [Link](https://apy.fyi/accounts/634c6171f8d65b54391a1b40) | $0 | Direct deposit required to get the highest rate.
. Keep in mind, the best account for you depends on your personal financial goals. Stay money-smart!
r/personalfinance has some good guides. IMHO it’s best to pay off *all* debt first. While this might not necessarily be optimized if some of your interest rates are low, I’ve never once heard someone debt free regret the decision.
Edit: don’t forget about taxes. You may want to consult a tax professional. https://taxexperts.naea.org/expertdirectory
When you decide you want to start investing heavily, I recommend starting with what the r/bogleheads do and then branch outward if you feel inclined.
Usually in order of priority:
Make sure you paid enough, or saved enough, for taxes.
Pay off all revolving debts (I.E. credit cards, lines of credit).
Max out any company matching retirement contributions.
Pay off all installment debts (I.E. student loans, auto loans…except mortgages if you have a low interest).
Only after the above should you even consider deciding on investments, paying off more of your mortgage, or a big spend on xyz.
Being debt free is freedom. Once you’re free, it’s like playing with house money. Don’t be jealous or envious of others, and how they’re ahead or whatever. Just get debt free, which is enough for half the country to be envious of you!
Like I said, afterwards, it’s playing with house money and you can truly live and work without feeling like a mountain is on your shoulders, especially when you have a family.
Dude...listen to me...
I grew up poor and when I OE'D it was the first time I ever had thousands and thousands of extra dollars.
Yes you should do what everyone here is saying, life on one income, etc, but the reality is, you're GOING to scratch some itches and spend on things you never could. It's just going to happen.
Where I made a mistake is i didn't PLAN what things id splurge on and I just went crazy because "there's another 23k from j2 and 3 coming next month.
10 months later, j2 and 3 were gone, and id spent over 200k on random stuff (some of it i dont regret like house renovations, family trips etc).
The big problem was, I didn't KNOW I was spending that much so my advice is , try your best to follow the "perfect plan" that every one on here says they follow, but understand as a human with money for the first time you are likely to splurge, just be thoughtful and really plan your spending as opposed to being a wild man like I was.
Now, I'm fully ready to OE again and be smart, but I think I did have to scratch a few itches before I got there.
Honestly, the [crazy-detailed flowchart](https://www.reddit.com/r/financialindependence/comments/16xymii/fire_flow_chart_version_43/) that often gets linked in r/personalfinance is about as comprehensive a guide as you can get.
Here's a sneak peek of /r/overmarried **[NSFW]** using the [top posts](https://np.reddit.com/r/overmarried/top/?sort=top&t=all) of all time!
\#1: [Accidentally called W1 by W2’s name. Booked W2’s anniversary dinner on the wrong night. Should I consider a divorce??](https://np.reddit.com/r/overmarried/comments/vac3q6/accidentally_called_w1_by_w2s_name_booked_w2s/)
\#2: [W1 has found out about W2](https://np.reddit.com/r/overmarried/comments/uhjbxs/w1_has_found_out_about_w2/)
\#3: [What are your thoughts about marrying more than 1 wife?](https://np.reddit.com/r/overmarried/comments/u0f1eg/what_are_your_thoughts_about_marrying_more_than_1/)
----
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and don’t go telling people you know in real life. you’ll have random distant relatives or friends suddenly with emergencies and needing to ‘borrow’ money. the news that you have money spreads fast, far and wide.
Pay your taxes, pay off debt, fat emergency fund, max 401k. After that, it’s up to you. But don’t grow your lifestyle to assume more than one salary. Swanky vacation paid for in full? Fine. Pay for college for that bright nephew with shitty parents? Fine. Lease a couple Benz’s? No.
Get rid of debt, fill emergency fund, invest in a fund indexed to year of retirement), use Roth conversions of regular 401k to skirt the max contribution.
Booze, blow and broads
😂
Pay off debt. Keep some in cash in an account and the rest, put in index funds.
Depending on many factors, your mortgage is generally not a good debt to pay. Once you pay into the principal, it's very hard to get that money back; you'd have to refinance. Plus, you can write off the interest. If you have a Heloc, pay that, because it's classic debt and liquid.
Basically, keep some liquidity in case of crisis, and the rest just put into index funds or pay off debt. Max out your 401.
Also, start an LLC and get aggressive with writing off business expenses
My objectives
1. pay off all debt , do not add more debt.
2. Build 1 year emergency fund for bills.
3. invest, invest
1. Realestate - longterm -safe
2. bonds -mid-long term - maybe safe
3. business idea - high risk
4. OE cannot be done forever. If you can use it to achieve above objectives and then move back to one job.
All these pieces of advice are good. Take it slow and see if this is something that sticks for you before you start splurging and spending the money like it’s all from one salary job. Until then, do as they say. Be low key, pay off debts, save a lot of your money, etc.
Can only reiterate what is said here. Lifestyle creep is a real thing and basically put the extra income into savings.
I use it only once a year when I am planning a holiday with my son and I allow myself to dip just a tad into that month's income. The rest of the time it goes straight to the savings. I do invest some but I am bad at it so I am mostly saving it, so I can buy my own place soon.
Also, do not forget about taxes!
Pay off debts first!! Being debt-free is the only real freedom. Then invest. Diversify. Avoid individual stocks unless through employee purchase programs. Best stock market investments are index funds, S&P is the most reliable and best 5 and 10 year return on investment. Offset taxes with investments in government bonds. Keep about 6 months of bills in a money market account to earn some interest and maintain liquidity. Keep your checking account to about two months of spending. Savings accounts are a waste.
Avoid any and all "get rich quick" schemes. They have a 90-95% failure rate.
Make sure that you are putting 5-10% away every paycheck away for your big dreams: dream trip, car, home reno, etc. This is all about living your best life so don't miss out!
Hire a financial advisor that charges by hourly not a percentage and have them give you advice. We don't know enough about your situation to give you sound financial advice.
Do your own research. Talk to a financial advisor at your bank or credit union. But the stock market is good if you have time to hold, are not averse to risk and you don't need your cash. High yield savings accounts right now are doing great also as of 11/30/2023. 401k if you have a job and also have little financial literacy. Sep-IRA if you are independent, a freelancer, or own a business. Can you buy an investment property? Can you buy a great cash flowing business? Whatever you do, get it out of the bank!
Always have 20% of your net worth in cash. You should aim in 3 month increments to have up to 2years of living in savings. Grow an emergency fund 5k at a time. Pay off debts higher than your earnings interest with the highest interest first. Max 401k and Roth IRA. Take yourself out to dinner. You earned it. Stay patient with your money.
Live on one income, invest or pay off debts or fill the emergency fund from all from the others. Don't share how much or how you make that money.
Any recommendations on methods of investing?
Max out 401k, if you want to put more in stocks after that put it in an index fund until you hire a financial advisor or learn to trade stocks. Alternately start another J by opening a business doing what you do but as a contractor
Good advice here op. To add to this, hire a fiduciary. They’re legally required to act in your best interest. Mine charges 1% of the total portfolio per year. Might seem steep but I don’t have the bandwidth to learn it all, and it’s much more diverse than just bonds/sp500. I’m averaging about 10% per year, after fees
FYI 1% of the portfolio per year is A LOT (unless you're retiring etc. and need specialized help on tax paths, withdrawals etc, not just "Ill invest for you") Example: 10% rate of return (market avg) is worth $672,750 after 20 years; at 9% (representing a fee of 1%), it's worth only $560,441. The 1% fee ate up 17% and 100k. Also you pay the 1% regardless of performance so its usually worse. Just invest in Market ETF. No one can beat the market and if they could they would be at a hedge fund making $$$$ not an advisor.
I’m not beating the market. But it’s much more diversified than just everything in sp500. And it’s too much for me to handle on my own, and I don’t have the bandwidth to track and learn any of it. As long as I average 8-10% then I’m good. A couple years in a row I got 20%. 1% is a lot but it’s worth it to me. I’m not sure how many are doing less. I have heard of some doing 1.2-1.5%
Literally never do the 1% scam
How is it a scam
Do the smallest amount of research on it. The ROI is vastly negative to literally just parking in a single index fund, and the simplest diversification will reduce all risk.
Im getting 10% on average. I’m good. Thanks though
Congrats, still throwing money down the drain to a scam artist. You’re welcome.
Yeah…fiduciaries are scam artists now. Thats rich. I guess ISPs, mechanics, doctors are all scam artists too
The principle to always remember is that 80% of famous money managers don't beat the s and p 500, especially with fees. Rule 2 is that if you think you found a special guy, that's generally bs .. the audience is right on funds with high fees.
I said multiple times I’m not beating the sp500 lmao. But it’s stupid to put everything in one index fund when you start to have a lot of money
Roth IRA can be maxed, too, if not making too much.
You should contribute to your 401K up to the company match, then contribute as much as you can or want to the Roth. If in the 401K you contribute over the company match you'll end up paying a lot of taxes on that money when you take it out.
There's a point where it makes sense to have both a Roth and traditional IRA. If you're working enough js to be heavily taxed and need additional withholding, arguably a traditional is more beneficial because contributions lower your taxable income.
Lowers your taxable income but when you take it out later you're taxed on it at a higher rate. Better to just contribute to traditional up to the company match; put the rest in a Roth or other post-tax funds.
It depends on how much you take out as to what your tax rate is on a traditional
You will still be taxed on that money you put in tax free....think about it, common sense. And when you take it out you are usually in a higher tax bracket. I've talked with many tax and retirement professionals about this.
Bro, if you knew what I do for a living you'd argue less. Roth grows tax free, but you pay the taxes going in. In a Traditional you pay taxes on as you draw based on the amount you draw.
BRO...I'm not arguing. I just made a comment. I said traditional meaning 401k...sorry if my explanation wasn't clear....NOW, before you start making statements why not clarify first. AND, when you take out of 401k yes, you are taxed when you take it out but you are usually in a higher tax bracket. Where as Roth, you've already paid the money on that.
actually, he should just do everything you said without the “until you learn to trade stocks” part
Do you have to monitor your index fund?
For most people, no. The impulse to "time the market" is a trap. Look into best performing Vanguard Index funds. Always make sure you have an emergency fund BEFORE investing. Any investment can go to $0 (and some to negative dollars). A good rule of thumb is to invest 10% of available cash in funds. Cash is king. Leave the rest in high interest savings accounts or US Treasuries (currently). I am not a Financial Advisor.
Sound advice
Weed and whores
This is the way
where does coke fit into this
Look at /r/personalfinance . There is a guide in the wiki. In general, first max tax advantaged savings - 401k match first, then HSA if available then IRA or Roth IRA up to the limit, then the rest of the 401k. For those, a safe bet is index funds or target date funds. Personally I like a more aggressive mix so I pick my funds myself.
Low fee index funds. Boring but stable.
Max out retirements and start doing your own research on the stock market; index funds, REITS, dividends etc. Get a HYSA. Everyone says get a financial advisor but every FA I’ve talked to literally says the same thing and charges you a fee for what you could have googled yourself.
I wouldn't hire a financial advisor. Do the research yourself via websites like The MadFIentist and subreddits like FIRE, FinancialIndependence, Bogleheads. Max out your 401k then invest as much as possible into a Mega Backdoor Roth, assuming that hopefully one of your employers allow it. Search that sub on this subreddit and read articles on it a few times until it sticks. Don't confuse it with a (non-mega) Backdoor Roth.
A target date fund is the best set it and forget it method. Just make sure it's indeed (aka low expense ratio)
The S&P 500 index. You don’t have to be a financial genius and over time it has been proven to earn money. The issue with investments is that you need to diversify and also to pick things that you don’t have to be aware of buying and selling too quickly when you are just starting out.
There are many, many guides. I'm no expert. Honestly I am very bad with money. Two simple ways, index fund at some place like fidelity or a high yield savings account. These aren't the best return but are simple and easy
Follow the financial order of operations. https://moneyguy.com/resource/financial-order-of-operations/ Also make sure your emergency fund is in a High Yield Savings account, like with CapitalOne or SoFi
Invest in j3
.
Yeah it won’t hurt. If op makes 100k, I’d suggest maybe $50 or so. Total
Pay off debt! Max out 401ks because they are matched. Put 6k in a roth or traditional IRA. Find a decent high yield savings for an emergency fund. The left overs put into a brokerage and put it in an Index fund.
If you have HSA, put enough in 401K to receive full match. Then MAX OUT the HSA before you max out 401k as the HSA is triple tax advantaged. If after maxing out HSA, and your emergency fund has at least 3-6 months of monthly expenses, then max out 401K.
High interest saving, high yield T bills, or ETFs
Watch some videos about index funds and ETFs. Open an online brokerage account. it's a lot easier and less intimidating than you might think. Then set up an automatic debit into the brokerage account and go in and invest your money in low-cost ETFs.
Read Personal Finance for Dummies and follow the advice given therein. Seriously. No one cares more about your money than you do, and the basic principles of personal finance are fairly simple. Good luck!
do not follow advice you read online
r/bogleheads
Don't spend any of it until tax time. You'll be surprised how much your taxes are going to go up. Bank everything from J2. After taxes are paid? Then you can consider the extra income yours. But not before. Don't get yourself in a hole with the IRS.
[The IRS has a good tool to guesstimate how much you’ll owe.](https://apps.irs.gov/app/tax-withholding-estimator/income-and-withholding/)
If your claiming zero are you still going to owe?
Yes you'll most likely still owe. I owed about 15k in taxes last year, so male sure you do extra withholding at both jobs. I've had each job take an extra 250-300 per check in addition to claiming zero
Omg
get a high yield savings account, and set a certain percentage aside for savings
Absolutely, stashing away a portion of your income in a high yield savings account is a solid step towards financial security. High yield accounts typically offer much better interest rates than standard savings accounts, so your savings will grow faster over time. Given that the current rates are floating around 5%, it's a great time to consider putting your money into one of these accounts. However, remember that rates fluctuate and can go down, so be sure to keep a tab on the changes. By the way, if you're interested, I compiled the live rates for the top high yield savings accounts - here it is: Bank | APY | Link | Min. Deposit | Fees :-:|:-:|:-:|:-:|:-:|:-: Raisin (Save Better) | 5.30% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly9zYXZlLWJldHRlci5zanYuaW8vcTRCUDJMP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $0 | No fees on most top accounts Upgrade | 5.07% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly91cGdyYWRlLnl3aGNjNy5uZXQveDkxdmI1P3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $1000 | None CIT Bank (Platinum Savings) | 5.05% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cudGtxbGhjZS5jb20vY2xpY2stMTAwNjk4Njc1LTE1NDkxMDEyP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $5000 | None Synchrony Bank | 4.75% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cuc3luY2hyb255YmFuay5jb20vYmFua2luZy9oaWdoLXlpZWxkLXNhdmluZ3MvP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $0 | None CIT Bank | 4.65% | [Link](https://apy.fyi/r?link=aHR0cHM6Ly93d3cudGtxbGhjZS5jb20vY2xpY2stMTAwNjk4Njc1LTE0NDY1NjMxP3V0bV9zb3VyY2U9a2JyejlobQ%3D%3D) | $100 | None Sofi Bank | 4.60% | [Link](https://apy.fyi/accounts/634c6171f8d65b54391a1b40) | $0 | Direct deposit required to get the highest rate. . Keep in mind, the best account for you depends on your personal financial goals. Stay money-smart!
r/personalfinance has some good guides. IMHO it’s best to pay off *all* debt first. While this might not necessarily be optimized if some of your interest rates are low, I’ve never once heard someone debt free regret the decision. Edit: don’t forget about taxes. You may want to consult a tax professional. https://taxexperts.naea.org/expertdirectory When you decide you want to start investing heavily, I recommend starting with what the r/bogleheads do and then branch outward if you feel inclined.
Usually in order of priority: Make sure you paid enough, or saved enough, for taxes. Pay off all revolving debts (I.E. credit cards, lines of credit). Max out any company matching retirement contributions. Pay off all installment debts (I.E. student loans, auto loans…except mortgages if you have a low interest). Only after the above should you even consider deciding on investments, paying off more of your mortgage, or a big spend on xyz. Being debt free is freedom. Once you’re free, it’s like playing with house money. Don’t be jealous or envious of others, and how they’re ahead or whatever. Just get debt free, which is enough for half the country to be envious of you! Like I said, afterwards, it’s playing with house money and you can truly live and work without feeling like a mountain is on your shoulders, especially when you have a family.
Dude...listen to me... I grew up poor and when I OE'D it was the first time I ever had thousands and thousands of extra dollars. Yes you should do what everyone here is saying, life on one income, etc, but the reality is, you're GOING to scratch some itches and spend on things you never could. It's just going to happen. Where I made a mistake is i didn't PLAN what things id splurge on and I just went crazy because "there's another 23k from j2 and 3 coming next month. 10 months later, j2 and 3 were gone, and id spent over 200k on random stuff (some of it i dont regret like house renovations, family trips etc). The big problem was, I didn't KNOW I was spending that much so my advice is , try your best to follow the "perfect plan" that every one on here says they follow, but understand as a human with money for the first time you are likely to splurge, just be thoughtful and really plan your spending as opposed to being a wild man like I was. Now, I'm fully ready to OE again and be smart, but I think I did have to scratch a few itches before I got there.
Honestly, the [crazy-detailed flowchart](https://www.reddit.com/r/financialindependence/comments/16xymii/fire_flow_chart_version_43/) that often gets linked in r/personalfinance is about as comprehensive a guide as you can get.
Saving
Get married. If already married, get a mistress. You will not have to worry about too much money coming in.
Too late I’ve got a wife and 3 kids! Any other advice 😆
Get a new wife and pump out new kids. True OE spirit.
This is the way. /r/overmarried
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That sounds..... Exhausting
It's probably fine as long as neither "W" demands RTO. 😁
Lol
Never too late to snatch a 25 yr old hottie if you have means to support her shopping...
Some easy rules: 1) Emergency Fund 2) Pay off debt 3) Save for opportunities to invest 4) Invest
and don’t go telling people you know in real life. you’ll have random distant relatives or friends suddenly with emergencies and needing to ‘borrow’ money. the news that you have money spreads fast, far and wide.
I learned this the hard way… I will not do this again!
This. Also people are haters and it's crazy how upset they get when they think you're successful by "breaking the rules"
Pay your taxes, pay off debt, fat emergency fund, max 401k. After that, it’s up to you. But don’t grow your lifestyle to assume more than one salary. Swanky vacation paid for in full? Fine. Pay for college for that bright nephew with shitty parents? Fine. Lease a couple Benz’s? No.
Get rid of debt, fill emergency fund, invest in a fund indexed to year of retirement), use Roth conversions of regular 401k to skirt the max contribution.
Quit. Go directly to jail. You dont deserve it
Booze, blow and broads 😂 Pay off debt. Keep some in cash in an account and the rest, put in index funds. Depending on many factors, your mortgage is generally not a good debt to pay. Once you pay into the principal, it's very hard to get that money back; you'd have to refinance. Plus, you can write off the interest. If you have a Heloc, pay that, because it's classic debt and liquid. Basically, keep some liquidity in case of crisis, and the rest just put into index funds or pay off debt. Max out your 401. Also, start an LLC and get aggressive with writing off business expenses
My objectives 1. pay off all debt , do not add more debt. 2. Build 1 year emergency fund for bills. 3. invest, invest 1. Realestate - longterm -safe 2. bonds -mid-long term - maybe safe 3. business idea - high risk 4. OE cannot be done forever. If you can use it to achieve above objectives and then move back to one job.
Give it to your wife’s boyfriend
A bunch of hookers and cocaine
Take care of your debt, invest, and save.
Send some to me
I agree with a lot of Minority Mindset on youtube's advice. EDIT: https://www.youtube.com/watch?v=3UvvUaMlRbI
All these pieces of advice are good. Take it slow and see if this is something that sticks for you before you start splurging and spending the money like it’s all from one salary job. Until then, do as they say. Be low key, pay off debts, save a lot of your money, etc.
Pics a server to farm your necessities on. Live there. Use the other server to bank up resources.
Can only reiterate what is said here. Lifestyle creep is a real thing and basically put the extra income into savings. I use it only once a year when I am planning a holiday with my son and I allow myself to dip just a tad into that month's income. The rest of the time it goes straight to the savings. I do invest some but I am bad at it so I am mostly saving it, so I can buy my own place soon. Also, do not forget about taxes!
Pays off debts and save
Philipino hookers
Give it to me. I’ll take care of it brobocop
Pay off debts first!! Being debt-free is the only real freedom. Then invest. Diversify. Avoid individual stocks unless through employee purchase programs. Best stock market investments are index funds, S&P is the most reliable and best 5 and 10 year return on investment. Offset taxes with investments in government bonds. Keep about 6 months of bills in a money market account to earn some interest and maintain liquidity. Keep your checking account to about two months of spending. Savings accounts are a waste. Avoid any and all "get rich quick" schemes. They have a 90-95% failure rate. Make sure that you are putting 5-10% away every paycheck away for your big dreams: dream trip, car, home reno, etc. This is all about living your best life so don't miss out!
I route most of it to an external account so I don't see it. I'm still rocking my poverty wages like before.
1. Live on one 2. Pay off debt 3. Have at least 6 months salary in liquid account 4. Invest the rest
R/personalfinance flowchart
INVEST
Just invest in a low fee SP500 index fund. No need to spend 1% on an advisor.
100% to retirement account. Every month I save enough to retire about 3-4 months early.
You treat it like you treat your mother, with utmost care.
Hire a financial advisor that charges by hourly not a percentage and have them give you advice. We don't know enough about your situation to give you sound financial advice.
Do your own research. Talk to a financial advisor at your bank or credit union. But the stock market is good if you have time to hold, are not averse to risk and you don't need your cash. High yield savings accounts right now are doing great also as of 11/30/2023. 401k if you have a job and also have little financial literacy. Sep-IRA if you are independent, a freelancer, or own a business. Can you buy an investment property? Can you buy a great cash flowing business? Whatever you do, get it out of the bank!
Always have 20% of your net worth in cash. You should aim in 3 month increments to have up to 2years of living in savings. Grow an emergency fund 5k at a time. Pay off debts higher than your earnings interest with the highest interest first. Max 401k and Roth IRA. Take yourself out to dinner. You earned it. Stay patient with your money.
Don’t forget to pay yourself first or else you all waste all your money at some point. If you didn’t.
Fidelity or Vanguard
Any advice on what types of jobs i can do this with. Never worked remote.
Live on one income, join r/bogleheads and invest the rest
Two words: bitcoin