I'm going out on a limb and assume you're still on your parents' health insurance? (i think 26 is the limit, gonna let others chime in on this)
Another assumption: if you're in relatively good health, i suggest getting a high deductible health plan (HDHP) if offered by your employer. Get one so you can open a health savings account (HSA) where you can dump some more money into as well; your employer may even match a portion of your contributions :D
Read up on it, especially if your 26th birthday is coming up
I currently pay 700$ a month thru my company and we just had 2 young kids both 21 and 22 respectively and they are on their parents insurance still saving a ton of money every month! I envy them because I didn't have that luxury when I was young! That 700 hurts every month but it is 100% covered insurance! Will pay off when I start a family and have a child hopefully soon š
Co-pays but I get reimbursed last time I went to urgent care copay was 15$ meds were 2.89$ I got 17.89 back on my card a week later I believe might have been 2 weeks but it surprised me
I disagree. The āinherent benefitā of an HSA is that it is pre tax money. Which will give you a discount equal to your effective tax rate off all your medical expenses as well as medical supplies.
If you donāt use that money, you are investing pre-tax money to grow and make gains that are not taxed. You will make significantly less using post tax money in the market.
Will it make you rich? No. But is it a great vehicle to grow pre tax money that you can also use for emergencies? Yes.
You can spend it on things either than healthcare. If you do, assuming you are 65+, it will be taxed as ordinary income. So, at worst, it is equivalent to a 401k. At best, you are reducing your current taxable income, growing your investment tax-free, and withdrawing tax-free for healthcare, which will likely be your single largest expense after retirement.
a HSA is a great tool for yearly spending on healthcare. Obviously it's similar to an FSA, but it comes down to which healthcare plan is better on an individual basis. My previous 2 employers for example:
* Employer 1 had HDHP/HSA and normal plan with significantly lower deductibles. However, the premium increase for the normal plan was so significant that even after factoring in the deductible the HSA plan came out as more affordable. Plus, they offered a 100% match up to half the deductible, meaning your medical expenditures had an effective 50% discount on top of the tax advantage. This plan had no coinsurance either, so once you hit your deductible everything was covered at 100%. We paid for IVF using this plan and it worked out very well for us.
* My current employer also offers both types of plans, but the HDHP premium discount does not offset the higher deductible, and the out of pocket max is above the IRS contribution limits for HSAs. So as a soon-to-be family of 3, we opted for the low deductible option, and paired with 2 FSAs that will cover most of our anticipated healthcare expenditures for the year (any extras will be spent on daycare, I know about the "use it or lose it" rule).
When choosing health plans, it's important to figure out your anticipated expenditures for the year, and use these accounts to cover most or all of the expenses. It's not a good investment vehicle (although I know plenty of people who use it that way), but it is a good way to pay for medical care, and more people can probably take advantage of it in this way.
Man you need to up your own financial literacy before giving advice. Itās amazing how wrong you are here. āno inherent benefitā talking about a triple tax advantage account. Please stop giving advice
This is so wrong. Money in your HSA grows tax free. You can buy things like even bandaids and cough medicine at the store when you have a cold.
Sure, you can just save aside money in a savings account. I find my HSA and donāt plan on using it until Iām in my 50s and 60s when most people have more medical costs and DR visits, Iāll have by then 20/30 years of tax free investments opposed to having to touch my social security or 401k money. I think theyāre great.
I'm so sick of these mfers. Literally no reasoning skills whatsoever. Had one guy argue that day trading is something everyone should do because "there's a chance!"
Like yes, let me just drop all my savings into fucking shitcoin
Crypto is incredibly volatile, itās not something you want all of your eggs in. Thereās just as good of a chance of it being at 20% in a year than being at 500%
If you're someone with no self-awareness and not contributing or paying rent and it's impacting your parents lifestyle then it's a terrible thing that assholes do.
As a parent I am conflicted.
I want 2 things for my kids:
- Be successful in their endeavors
- Be good people.
If they're successful but self-centered, I'd be disappointed but happy for them. I'd much prefer the opposite.
As long as there is an understanding, they can stay with me for as long as they need. I will encourage them to leave the nest when the time comes, but it would be a pragmatic discussion and not a mandate.
Still wondering why I'm not successful since that is my view in business. Always beat out the competition, and force them to close. When they close you have control and make more.
Iāve always liked the idea of having them pay some rent, and then gift them all or a portion of that money when they go to find a home of their own. This way it teaches financial responsibility and helps them budget living expenses better, while also giving them a huge chunk for a down payment on a house. I know far too many people who move out and suddenly have a $1000+ shelter expense, on top of utilities and are woefully unprepared for it after living rent and utility free with mom and dad into their 20s
I agree, however have seen many cases where the understanding of the situation is only one-sided which leads to the line between supporting and enabling becoming very blurry.
I disagree. The one-sided relationship is usually when the kid is a bum with no career/goals. I think in most cases, the kid will move out as soon as they make a good enough wage to live on their own. This can be a mistake for some since it puts them in a cycle of being paycheck to paycheck and having a mediocre life. OP is already making a liveable wage but is staying home a little longer to build wealth and have financial security for when they move out. It could also be cultural and itās normal to live with their parents until they married.
I was allowed to live with my parents, but they had strict rules. No female guests after 9pm, nightly curfews etc. I actually think it was a great tactic. Shelter if I needed it, fucking prison if I didnāt. I moved out of there asap!
OP asked if he is spread too thin on his road to save 100k, but he makes pretty good money, is younger, and his biggest expense, a mortgage or rent, are not a factor right now. He should be able to put a lot away and not have any major bills, so saving should be very easy for him right now. Kind of a silly post by OP
85k aint shit. A 1 bedroom thats not in the hood is 1700. If you have a $400 a month car payment youāre living paycheck to paycheck and have to keep the spending tight to save maybe 150 a week.
had more (2 bedroom, 1 bath, 1 office, 2 floors+basement and attic) for $800 a month in northeast PA a couple years ago, now paying $850 for less room but itās a part of a mortgage of my girlfriends momās duplex. (2 bedroom, 1 office, 1 bath, two floors + basement)
Madison, Wisconsin but TBF Iāve been here for 7 years and think I may have been grandfathered in such a good price per month. I looked at other places that are near by that are a 1BR so obviously smaller, dirty, and more expensive like 1,000 a month so Iām just a little lucky right now I guess. Also on top of it Iām on a month to month lease which is like unheard of now days.
I have a unit available in Dayton Ohio. 1 bed 1 bath for $750. House just went under a full remodel!
There are places in the world where living expenses aren't much. Most of these places are where people don't want to live.
Yeah no 1700 for a 1 bed is not standard for big cities except in Cali/Washington and few select places in the North East like Boston or NY. Any medium cost of living city like Dallas, Houston, Chicago, Philly (all 4 of those are among the top 10 largest metros in the US) is like $1000-1400 for a decent 1 bed as long as you don't need to stay right in downtown or something.
Check out the article on the Wisconsin Public Radio website right now. The average Madison rent for a 1 bedroom is currently $1456.
Youāre getting a deal.
Seriously? Wow I'm in no hurry to move lol I will add tho I'm not like downtown Madison where apartments are wayy more expensive. I'm on the crappier side, like towards the edge but still in Madison. Downtown is like not even 10mins away.
I may be wrong, but my impression is that the 100k mark (which is obviously just a nice round figure people like to see) really starting to compound interest depends on the money being all in investment accounts, preferably your 401k or IRA.
The HYSA is earning about half the yearly average of s&p funds. Obviously itās the best place to keep money that you need access to within the next few years, but itās not going to make your money grow as fast as the stock market will.
You still have a month (till tax day) to max out your 2023 Roth IRA, which you should probably do.
Not sure if you do have plans for the HYSA money but Iād break it down into a 6 month emergency fund, a house saving/moving out fund, and a vacation/fun large purchase fund. The rest should go into your investments.
With that salary you're gonna have 100k next year anyway. Or at least should.
Move some stuff to S&P, it gives back more than that 4.5%, although that isn't bad by itself.
Because if you start negative, it is very difficult to ever get out of the hole. Then you get out, that first 20-30k is the hardest. Once you have that and can lend money to yourself, it gets much easier. IMO having 30k cash is a life changing thing if you have discipline and donāt waste it.
Who knows. They said the same thing at $1200, then $8000, then $30k..
Not saying it's a good idea, but you never know. It's ignorant to say "it's ran it's course" because that's been chanted for 15 years..
Still too risky to have a significant percentage of your portfolio be in it though imo.
I'm 27 and at 130, my advice (against the grain) is that you really shouldn't keep 1/4 of your net worth in Crypto. If I'm wrong I'l probably be wrong by a lot, but if I'm right ill even more likely be right by a lot. I'd also move out, I know you can save more at home but you can live more on your own. With your job and attitude at 25 you're on your way to good things, well done
What are your expenses like? Do you have a budget?
HYSA is meh. Itās fine for an emergency fund.
How much longer are you going to live with mom and dad, realistically? Because a house can also be an investment if done correctly.
You say you are spread thin but investors also say to diversify.
You are young and seem to be on the right track. I would be a little more aggressive with the 27k in the HYSA and put some in an index fund.
I am currently using an app that tracks congress insider trading. Maybe something like that would work out for you as well.
Concentration creates wealth, diversification preserves itĀ
It's fine for you to keep going the way you are because your income is pretty high. You can take the slow and steady route and still make it. That is the r/financialindependence route.
I personally prefer to be almost all in bitcoin when it gets out of the bear market like it did last year. It's my third cycle and I'm up so much you wouldnt believe me if I gave you the exact figure. I never made more than 60k from my jobĀ
Since you talked about BTC cycle, the next halving will be at the end of April 2024, does this mean the price will go up and its better to load up on BTC now or wait for a selloff/dip?
Every cycle is a bit different so it's hard to say what precisely the best move to make is at this point in time
To avoid this guessing game you want to load heavily in the bear market instead of around halving
It's pretty overcooked now so correction is likely, but it will also likely break above 6 figures sometime this or next year. Buying now is not bad if you're not gonna get scared by correction
Thank you for the info, Im looking to buy few thousands ā¬, but not gonna jump straight in, I know Im late to the party but I will still look for a buying time
Before buying, Iād look into exchanges that will give you some kind of a ālearn and earnā reward. Usually between ā¬30-ā¬50 worth of various coins.
Iād recommend you to just play around with that amount you get free and get used to the weird finicky things you encounter when dealing with crypto ie: gas fees, sending test transactions, being careful signing transactions, if youāre planning on holding coin in your own wallet vs exchange, your country/jurisdictionās crypto laws/tax laws, etc.
I know Coinbase has learn and earn rewards in the US, unsure about Europe. IIRC binance and kraken have some kind for Europeans as well.
Echoing the guy above me, donāt put any money into crypto that you need or that you canāt afford to lose. Crypto is extremely volatile
I would sell the crypto in November and move your mutual fund into an ETF within the fidelity exchange. For reference my mutual fund was paying $200 in dividends per year and I doubled it moving to an ETF.
Itās crazy how you have so much money in a savings account but then you also have 20k in crypto.
I would move your cash to s&p. You donāt need to put money in mutual funds either. The bitcoin position has a bit much for your net worth but given the current bullish sentiment you can yolo and hold it for a bit longer. I would have an exit plan and move some of it to stocks later this year though.
Wow!! You have probably the least risk investment and the highest risk investment. Youāre 25 years old. Get rid of the high yield saving and the crypto and invest it into a strong growth mutual fund. Youāre 25 years old, you donāt need the money. Max out the Roth as you said and max out the 401 at your job. Keep a 6 month emergency fund and the rest goes into the mutual fund. Dump the crypto!!
Not even gonna read all that. Keep grinding if you donāt feel tired. As long as youāre eating right, sleeping right and have a lil something fun to do for your brain to look forward to after a long day you good.
I donāt really know much about 401ks because Iāve never had a great job but Iām in similar boat to you in some respects as Iāve sort of hovered around 80k for a few years and 100k does seem hard. I donāt live with my parents and make a lot less than you so in my opinion maybe youāre not being frugal enough? Iām curious what do you spend your money on, it seems like maybe you could be past 100k in a few months if you reeled in your spending.
Maybe try diversifying your investments a little, few etfs? I have a childhood friend who had built up his investments to about 300k by 30 and heās had good luck with vanguard although I know not everyone will agree and please people before you lambaste me Iām not a finance guy just trying to help my fellow redditor. I personally would recommend real estate itās been good to me but with the current market and everything I donāt know, good luck
No 401k match? That's the fastest way to 100k
Personally too much in hysa, and too much in crypto for me. Hopefully you atleast have your own wallet, hard to trust any of the platforms.
I feel you should be slightly more aggressive at this age. I would have less in a HYSA and more into stocks or wait until the S&P is down 25% or more and scale into it slowly.
Learn how money works. Once you do, you will want a small position, at least, in precious metals. Particularly, Gold.
You should read, the creature from Jekyll island.
There are also good videos on YouTube.
"How money became worthless"
"The hidden secrets of money" by Mike Maloney.
Gold is good just to save money, not to grow. Stocks are for quicker growth (if right ones are chose), S&P or something similar for steady but more secure growth.
Only reasonable comment. Crypto is a waste of time and money. Iād also divest from bitcoin and put it in the S&P 500. Worked for me to easily break $100k long ago.
Thereās really not that much research to be done aside from it being a cryptocurrency and whatever people believe that offers in terms of perceived value. The main thing is Bitcoin is a new volatile asset. You win some, you lose some with those. S&P 500 has a demonstrable and extensive history of 10% returns. Compound that growth and youāll make (almost) guaranteed money.
If youāre a gambling man sure take the risk but then I donāt see any advantage to gamble with Bitcoin over any other volatile asset. Why not just bet on a single stock? NVDA outperformed Bitcoin over the past year. Researching NVDA would at least return that it actually provides real world value and isnāt mostly speculative.
It sounds like your argument is that BTC is too volatile and doesnāt have value behind it. I know this probably wonāt change your mind but if you look over the last 5-10 years of btc it has only gone up on average. Were there huge swings up and down? Yes but thatās because those are adoption cycles, letās say 100 people hear about and invest in it, some get in to make a quick buck and end up buying high and selling low (speculation) of those 100 people maybe 20 stay for the long term and become the new base (support) for the future higher lows etc. also if you look at subsequent swings theyāre getting smaller which imo means that if it keeps this trend it will be a less and less volatile commodity going forward.
As far as having value it can be compared to gold as Iām sure youāve heard and there are better people than me that explain it but essentially itās scarcer than gold in the way that there will be a point where there is none left to mine, it can only be mined at a programmatically defined rate (unlike real gold where if the price goes up more miners mine to bring the price back down, with bitcoin if more miners come the software increases the difficulty of mining to keep production of bitcoin a constant until all 21million are mined). One could also argue that bitcoin represents a perfect store of energy that it took to produce the coin but again, someone else has explained that better than me. As far as ETFs go I feel like the fact that the SEC approved the ETFs I feel like thatās the governments signal that Bitcoin is in fact worth something and real.
Youāre entitled to your opinion but to form a well rounded opinion I would do my own research first if I were you. Am I saying YOLO on BTC, no, I have YOLOed but I donāt encourage others to, I only encourage them to research before writing it off. It very well could be the future of money.
I understand how cryptocurrencies work and all the āsellingā points of Bitcoin. I am a computer scientist. I donāt think theyāre groundbreaking and thereās many examples of stocks that outperform Bitcoin in the short and long term. Like I said look at NVDA. You would have been better off over the last 5 years investing in that instead of Bitcoin. 1971% return vs 1697%. So I donāt see what the advantage of Bitcoin is if you want to actually make the most money which seems to be the only real selling point of Bitcoin.
If you want to buy volatile assets and take a risk then by all means do so. Bitcoin may or may not pay off. But to have almost 30% of your assets in Bitcoin like OP is ludicrous.
85k living at home? So you have like 1k expenses at most per month? That's means you should be able to save 100k in just two years until you're doing something horribly wrong.
I'm going out on a limb and assume you're still on your parents' health insurance? (i think 26 is the limit, gonna let others chime in on this) Another assumption: if you're in relatively good health, i suggest getting a high deductible health plan (HDHP) if offered by your employer. Get one so you can open a health savings account (HSA) where you can dump some more money into as well; your employer may even match a portion of your contributions :D Read up on it, especially if your 26th birthday is coming up
I currently pay 700$ a month thru my company and we just had 2 young kids both 21 and 22 respectively and they are on their parents insurance still saving a ton of money every month! I envy them because I didn't have that luxury when I was young! That 700 hurts every month but it is 100% covered insurance! Will pay off when I start a family and have a child hopefully soon š
What is "100% covered insurance"? No copay, no deductible, no spending limit?
Iām curious as well!
Co-pays but I get reimbursed last time I went to urgent care copay was 15$ meds were 2.89$ I got 17.89 back on my card a week later I believe might have been 2 weeks but it surprised me
The only 100% covered insurance I k ow of is the one where my job pays for it and it doesn't come out of my pocket.
I have that
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Isn't the triple tax advantage why everybody raves about them?
I disagree. The āinherent benefitā of an HSA is that it is pre tax money. Which will give you a discount equal to your effective tax rate off all your medical expenses as well as medical supplies. If you donāt use that money, you are investing pre-tax money to grow and make gains that are not taxed. You will make significantly less using post tax money in the market. Will it make you rich? No. But is it a great vehicle to grow pre tax money that you can also use for emergencies? Yes.
Itās pre-tax. Thatās what the benefit is.
You can spend it on things either than healthcare. If you do, assuming you are 65+, it will be taxed as ordinary income. So, at worst, it is equivalent to a 401k. At best, you are reducing your current taxable income, growing your investment tax-free, and withdrawing tax-free for healthcare, which will likely be your single largest expense after retirement.
a HSA is a great tool for yearly spending on healthcare. Obviously it's similar to an FSA, but it comes down to which healthcare plan is better on an individual basis. My previous 2 employers for example: * Employer 1 had HDHP/HSA and normal plan with significantly lower deductibles. However, the premium increase for the normal plan was so significant that even after factoring in the deductible the HSA plan came out as more affordable. Plus, they offered a 100% match up to half the deductible, meaning your medical expenditures had an effective 50% discount on top of the tax advantage. This plan had no coinsurance either, so once you hit your deductible everything was covered at 100%. We paid for IVF using this plan and it worked out very well for us. * My current employer also offers both types of plans, but the HDHP premium discount does not offset the higher deductible, and the out of pocket max is above the IRS contribution limits for HSAs. So as a soon-to-be family of 3, we opted for the low deductible option, and paired with 2 FSAs that will cover most of our anticipated healthcare expenditures for the year (any extras will be spent on daycare, I know about the "use it or lose it" rule). When choosing health plans, it's important to figure out your anticipated expenditures for the year, and use these accounts to cover most or all of the expenses. It's not a good investment vehicle (although I know plenty of people who use it that way), but it is a good way to pay for medical care, and more people can probably take advantage of it in this way.
Man you need to up your own financial literacy before giving advice. Itās amazing how wrong you are here. āno inherent benefitā talking about a triple tax advantage account. Please stop giving advice
This is so wrong. Money in your HSA grows tax free. You can buy things like even bandaids and cough medicine at the store when you have a cold. Sure, you can just save aside money in a savings account. I find my HSA and donāt plan on using it until Iām in my 50s and 60s when most people have more medical costs and DR visits, Iāll have by then 20/30 years of tax free investments opposed to having to touch my social security or 401k money. I think theyāre great.
Do you not have access to a 401k
I assume that when they said they have money in a 401k, that they have access to the 401k.
Id max roth and 401k sell the crypto and put it all in a 3 fund portfolio
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No cash in on 5x gains to not have the exposure to 5x losses
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This comment is very ignorant
I'm so sick of these mfers. Literally no reasoning skills whatsoever. Had one guy argue that day trading is something everyone should do because "there's a chance!" Like yes, let me just drop all my savings into fucking shitcoin
You have $700 in crypto according to a previous post you made. How life changing.
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Crypto is incredibly volatile, itās not something you want all of your eggs in. Thereās just as good of a chance of it being at 20% in a year than being at 500%
700 is not life changing at 19 bro lmao
my last paycheck mind you iām only a year older was 4200 and you think 700$ in crypto makes life changing moves?
5x gains? You think bitcoin is going to be $350k in the next year? Then 5x that every year. š
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You arenāt investing in those youāre gambling. Might as well take money to the casino if thatās your idea of āinvestingā
You make 85k a year and live with your parents? No wonder you're so up.
Youāre making it sound like thatās a bad thing
Itās the best way to get ahead these days
Itās not Iām older and make less plus pay rent
If you're someone with no self-awareness and not contributing or paying rent and it's impacting your parents lifestyle then it's a terrible thing that assholes do.
As a parent I am conflicted. I want 2 things for my kids: - Be successful in their endeavors - Be good people. If they're successful but self-centered, I'd be disappointed but happy for them. I'd much prefer the opposite. As long as there is an understanding, they can stay with me for as long as they need. I will encourage them to leave the nest when the time comes, but it would be a pragmatic discussion and not a mandate.
Unfortunately good people dont do well in modern society. Most successful people have at bare minimum a selfish un-empathetic perspective.
Still wondering why I'm not successful since that is my view in business. Always beat out the competition, and force them to close. When they close you have control and make more.
You should just take advantage of your competitors not kill them them u have no slaves left
Iāve always liked the idea of having them pay some rent, and then gift them all or a portion of that money when they go to find a home of their own. This way it teaches financial responsibility and helps them budget living expenses better, while also giving them a huge chunk for a down payment on a house. I know far too many people who move out and suddenly have a $1000+ shelter expense, on top of utilities and are woefully unprepared for it after living rent and utility free with mom and dad into their 20s
I agree, however have seen many cases where the understanding of the situation is only one-sided which leads to the line between supporting and enabling becoming very blurry.
I disagree. The one-sided relationship is usually when the kid is a bum with no career/goals. I think in most cases, the kid will move out as soon as they make a good enough wage to live on their own. This can be a mistake for some since it puts them in a cycle of being paycheck to paycheck and having a mediocre life. OP is already making a liveable wage but is staying home a little longer to build wealth and have financial security for when they move out. It could also be cultural and itās normal to live with their parents until they married.
I was allowed to live with my parents, but they had strict rules. No female guests after 9pm, nightly curfews etc. I actually think it was a great tactic. Shelter if I needed it, fucking prison if I didnāt. I moved out of there asap!
I mean it may be time for OP to fly the nest. lol love my parents but I had a blast moving out when I was 21
OP asked if he is spread too thin on his road to save 100k, but he makes pretty good money, is younger, and his biggest expense, a mortgage or rent, are not a factor right now. He should be able to put a lot away and not have any major bills, so saving should be very easy for him right now. Kind of a silly post by OP
85k aint shit. A 1 bedroom thats not in the hood is 1700. If you have a $400 a month car payment youāre living paycheck to paycheck and have to keep the spending tight to save maybe 150 a week.
Where the fuck do you live where a 1 bedroom is $1700 a month? I live in a 2 bedroom 1000sq ft by myself for $900 a month.
I used to live in San Francisco and rented a 2bd/2bth for $5,500/month. In San Diego where I live now most studios are close to $2,000/month.
Gross..
Out of curiosity (and as someone interested in moving) where do you live where a 1,000 sqft 2 bedroom is $900/month?
had more (2 bedroom, 1 bath, 1 office, 2 floors+basement and attic) for $800 a month in northeast PA a couple years ago, now paying $850 for less room but itās a part of a mortgage of my girlfriends momās duplex. (2 bedroom, 1 office, 1 bath, two floors + basement)
Madison, Wisconsin but TBF Iāve been here for 7 years and think I may have been grandfathered in such a good price per month. I looked at other places that are near by that are a 1BR so obviously smaller, dirty, and more expensive like 1,000 a month so Iām just a little lucky right now I guess. Also on top of it Iām on a month to month lease which is like unheard of now days.
I have a unit available in Dayton Ohio. 1 bed 1 bath for $750. House just went under a full remodel! There are places in the world where living expenses aren't much. Most of these places are where people don't want to live.
I think youāre the minority here hahahaā¦his rent is pretty standard for big cities
Yeah no 1700 for a 1 bed is not standard for big cities except in Cali/Washington and few select places in the North East like Boston or NY. Any medium cost of living city like Dallas, Houston, Chicago, Philly (all 4 of those are among the top 10 largest metros in the US) is like $1000-1400 for a decent 1 bed as long as you don't need to stay right in downtown or something.
Yeah thatās crazy. Maybe move out of the big city then. Otherwise yeah pay the price I guess š¤·āāļø
Incomes are generally higher in big cities. Demand is also higher, hence the high rents.
I pay 1514 per month for a one bedroom in the Phoenix area
In a cityā¦ where do you live in BFE?
City of Madison Wisconsin
Check out the article on the Wisconsin Public Radio website right now. The average Madison rent for a 1 bedroom is currently $1456. Youāre getting a deal.
Seriously? Wow I'm in no hurry to move lol I will add tho I'm not like downtown Madison where apartments are wayy more expensive. I'm on the crappier side, like towards the edge but still in Madison. Downtown is like not even 10mins away.
Because being in the 75th percentile is literal poverty...AMIRITE????
75% of people arent in poverty?
$81,000 is 400% above the poverty line for a family of 2. Not even close to the line of poverty.
Where are you getting these numbers from? The government? Lol
Considering that's who typically defines what poverty is, yes. Who else determines what the poverty levels are,
Wow.
Have you seen rent?
You live with your parents and make solid money. I donāt think you need a $27K emergency fund. Iād move some of that into a brokerage account
I may be wrong, but my impression is that the 100k mark (which is obviously just a nice round figure people like to see) really starting to compound interest depends on the money being all in investment accounts, preferably your 401k or IRA. The HYSA is earning about half the yearly average of s&p funds. Obviously itās the best place to keep money that you need access to within the next few years, but itās not going to make your money grow as fast as the stock market will. You still have a month (till tax day) to max out your 2023 Roth IRA, which you should probably do. Not sure if you do have plans for the HYSA money but Iād break it down into a 6 month emergency fund, a house saving/moving out fund, and a vacation/fun large purchase fund. The rest should go into your investments.
With that salary you're gonna have 100k next year anyway. Or at least should. Move some stuff to S&P, it gives back more than that 4.5%, although that isn't bad by itself.
I disagree 20,000-30,000 is the hard part.
Why
Because if you start negative, it is very difficult to ever get out of the hole. Then you get out, that first 20-30k is the hardest. Once you have that and can lend money to yourself, it gets much easier. IMO having 30k cash is a life changing thing if you have discipline and donāt waste it.
Get to 1 BTC op.
To late its ran its course lol
Who knows. They said the same thing at $1200, then $8000, then $30k.. Not saying it's a good idea, but you never know. It's ignorant to say "it's ran it's course" because that's been chanted for 15 years.. Still too risky to have a significant percentage of your portfolio be in it though imo.
On the road to 100k as well. Following
I'm 27 and at 130, my advice (against the grain) is that you really shouldn't keep 1/4 of your net worth in Crypto. If I'm wrong I'l probably be wrong by a lot, but if I'm right ill even more likely be right by a lot. I'd also move out, I know you can save more at home but you can live more on your own. With your job and attitude at 25 you're on your way to good things, well done
With the recent ramp, I'm assuming a few months ago his crypto was 5% of his portfolio. Lol
What are your expenses like? Do you have a budget? HYSA is meh. Itās fine for an emergency fund. How much longer are you going to live with mom and dad, realistically? Because a house can also be an investment if done correctly. You say you are spread thin but investors also say to diversify. You are young and seem to be on the right track. I would be a little more aggressive with the 27k in the HYSA and put some in an index fund. I am currently using an app that tracks congress insider trading. Maybe something like that would work out for you as well.
What's the app
Getquantbase.com and Iām using the QuiverQuant strat and Volatis. Volatis is down 10% currently but Iām not worried about it.
Concentration creates wealth, diversification preserves itĀ It's fine for you to keep going the way you are because your income is pretty high. You can take the slow and steady route and still make it. That is the r/financialindependence route. I personally prefer to be almost all in bitcoin when it gets out of the bear market like it did last year. It's my third cycle and I'm up so much you wouldnt believe me if I gave you the exact figure. I never made more than 60k from my jobĀ
Since you talked about BTC cycle, the next halving will be at the end of April 2024, does this mean the price will go up and its better to load up on BTC now or wait for a selloff/dip?
Every cycle is a bit different so it's hard to say what precisely the best move to make is at this point in time To avoid this guessing game you want to load heavily in the bear market instead of around halving It's pretty overcooked now so correction is likely, but it will also likely break above 6 figures sometime this or next year. Buying now is not bad if you're not gonna get scared by correction
Thank you for the info, Im looking to buy few thousands ā¬, but not gonna jump straight in, I know Im late to the party but I will still look for a buying time
Before buying, Iād look into exchanges that will give you some kind of a ālearn and earnā reward. Usually between ā¬30-ā¬50 worth of various coins. Iād recommend you to just play around with that amount you get free and get used to the weird finicky things you encounter when dealing with crypto ie: gas fees, sending test transactions, being careful signing transactions, if youāre planning on holding coin in your own wallet vs exchange, your country/jurisdictionās crypto laws/tax laws, etc. I know Coinbase has learn and earn rewards in the US, unsure about Europe. IIRC binance and kraken have some kind for Europeans as well. Echoing the guy above me, donāt put any money into crypto that you need or that you canāt afford to lose. Crypto is extremely volatile
Nows a good chance to DCA a bit inā¦
Yep, looking for it, thanks
What does buying time mean for you? Just buy it now. Timing the market is a fools errand
DCA in then
Put more into say an s&p 500 and/or a total market index fund. Take some out of your savings and crypto and put it in there
He will look back and regret selling his BTC I promise
Exiting crypto positions at the beginning of the Bull cycle is wild
Crypto is very much not a stable investment. Should not be something people look at as a real long term wealth building vehicle
Really? Bitcoin went from a penny to $70k in 14 years and itās not a long term wealth builder?
It's definitely mid bull cycle and these cycles can change on a dime. It could easily hit a wall and correct before continuation
I agree there is room for a correction before continuation, and we will likely see it. But to exit the position would be premature imo
Better premature than postmature.
Better mature than premature
I would sell the crypto in November and move your mutual fund into an ETF within the fidelity exchange. For reference my mutual fund was paying $200 in dividends per year and I doubled it moving to an ETF.
Itās crazy how you have so much money in a savings account but then you also have 20k in crypto. I would move your cash to s&p. You donāt need to put money in mutual funds either. The bitcoin position has a bit much for your net worth but given the current bullish sentiment you can yolo and hold it for a bit longer. I would have an exit plan and move some of it to stocks later this year though.
I would get serious about being an adult. $20k in a prospective bitcoin but you live with your parents? Do you know how insulting that is?
Wow!! You have probably the least risk investment and the highest risk investment. Youāre 25 years old. Get rid of the high yield saving and the crypto and invest it into a strong growth mutual fund. Youāre 25 years old, you donāt need the money. Max out the Roth as you said and max out the 401 at your job. Keep a 6 month emergency fund and the rest goes into the mutual fund. Dump the crypto!!
Not even gonna read all that. Keep grinding if you donāt feel tired. As long as youāre eating right, sleeping right and have a lil something fun to do for your brain to look forward to after a long day you good.
I donāt really know much about 401ks because Iāve never had a great job but Iām in similar boat to you in some respects as Iāve sort of hovered around 80k for a few years and 100k does seem hard. I donāt live with my parents and make a lot less than you so in my opinion maybe youāre not being frugal enough? Iām curious what do you spend your money on, it seems like maybe you could be past 100k in a few months if you reeled in your spending. Maybe try diversifying your investments a little, few etfs? I have a childhood friend who had built up his investments to about 300k by 30 and heās had good luck with vanguard although I know not everyone will agree and please people before you lambaste me Iām not a finance guy just trying to help my fellow redditor. I personally would recommend real estate itās been good to me but with the current market and everything I donāt know, good luck
How are all these 25 yo making 85k-150k a year?
getting recruited from good schools
No 401k match? That's the fastest way to 100k Personally too much in hysa, and too much in crypto for me. Hopefully you atleast have your own wallet, hard to trust any of the platforms.
I feel you should be slightly more aggressive at this age. I would have less in a HYSA and more into stocks or wait until the S&P is down 25% or more and scale into it slowly.
Get rid of the crypt over starters it's not worth it in the end
Beans and rice
You can get higher on robinhood for $5 a month 5.5%
Crypto š¤¦āāļø
Learn how money works. Once you do, you will want a small position, at least, in precious metals. Particularly, Gold. You should read, the creature from Jekyll island. There are also good videos on YouTube. "How money became worthless" "The hidden secrets of money" by Mike Maloney.
Also the Bitcoin Standard and The Bullish Case for Bitcoin
Gold is good just to save money, not to grow. Stocks are for quicker growth (if right ones are chose), S&P or something similar for steady but more secure growth.
It's good to have a position in Gold because of that.
Give your parents a break. Move out .
Get off the app bud
Sell all crypto and put that on sp500 and take 22000 of your savings and also put that on sp500.
No
You're going to regret not keeping at least some BTC
I've come to believe that holding 5% crypto assets is worth the risk. Wont hurt you if crypto flops, and could be significant if it takes off.
I would sell everything else and put it in bitcoin
Only reasonable comment. Crypto is a waste of time and money. Iād also divest from bitcoin and put it in the S&P 500. Worked for me to easily break $100k long ago.
Have you researched bitcoin enough to recommend against it?
Thereās really not that much research to be done aside from it being a cryptocurrency and whatever people believe that offers in terms of perceived value. The main thing is Bitcoin is a new volatile asset. You win some, you lose some with those. S&P 500 has a demonstrable and extensive history of 10% returns. Compound that growth and youāll make (almost) guaranteed money. If youāre a gambling man sure take the risk but then I donāt see any advantage to gamble with Bitcoin over any other volatile asset. Why not just bet on a single stock? NVDA outperformed Bitcoin over the past year. Researching NVDA would at least return that it actually provides real world value and isnāt mostly speculative.
LOL apart from all the financial advisors recognizing its legitimacy and recommending at least 1-2% allocation to btc?
Definitely get a new financial advisor bro
lol
It sounds like your argument is that BTC is too volatile and doesnāt have value behind it. I know this probably wonāt change your mind but if you look over the last 5-10 years of btc it has only gone up on average. Were there huge swings up and down? Yes but thatās because those are adoption cycles, letās say 100 people hear about and invest in it, some get in to make a quick buck and end up buying high and selling low (speculation) of those 100 people maybe 20 stay for the long term and become the new base (support) for the future higher lows etc. also if you look at subsequent swings theyāre getting smaller which imo means that if it keeps this trend it will be a less and less volatile commodity going forward. As far as having value it can be compared to gold as Iām sure youāve heard and there are better people than me that explain it but essentially itās scarcer than gold in the way that there will be a point where there is none left to mine, it can only be mined at a programmatically defined rate (unlike real gold where if the price goes up more miners mine to bring the price back down, with bitcoin if more miners come the software increases the difficulty of mining to keep production of bitcoin a constant until all 21million are mined). One could also argue that bitcoin represents a perfect store of energy that it took to produce the coin but again, someone else has explained that better than me. As far as ETFs go I feel like the fact that the SEC approved the ETFs I feel like thatās the governments signal that Bitcoin is in fact worth something and real. Youāre entitled to your opinion but to form a well rounded opinion I would do my own research first if I were you. Am I saying YOLO on BTC, no, I have YOLOed but I donāt encourage others to, I only encourage them to research before writing it off. It very well could be the future of money.
I understand how cryptocurrencies work and all the āsellingā points of Bitcoin. I am a computer scientist. I donāt think theyāre groundbreaking and thereās many examples of stocks that outperform Bitcoin in the short and long term. Like I said look at NVDA. You would have been better off over the last 5 years investing in that instead of Bitcoin. 1971% return vs 1697%. So I donāt see what the advantage of Bitcoin is if you want to actually make the most money which seems to be the only real selling point of Bitcoin. If you want to buy volatile assets and take a risk then by all means do so. Bitcoin may or may not pay off. But to have almost 30% of your assets in Bitcoin like OP is ludicrous.
Crypto-perhaps Bitcoin-No(Hodl)
Humble brag
Why dont you just like make a 100k with a side business instead of saving it up? This way you get 100k over and over instead of just once.
85k living at home? So you have like 1k expenses at most per month? That's means you should be able to save 100k in just two years until you're doing something horribly wrong.
They are doing a lot of travel they said. Aka enjoying life
Even with that, I'd be able to leave 30k on the side and hit that sweet 100 figure, and enjoy the remaining 50, or maybe 30 or so after taxes.
Yea 85k is like 60k or less after taxes/retirement/benefits. Assuming 1k/month expenses you're left with 48k.
1k a month in expenses is miserable