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Reading all the past posts about people having X*net worth has got me bummed out. The problem is I have nothing to measure myself against. Regardless of how well or how unwell I'm doing, I consider it a sad state of affairs that I have to plan for retirement at 28.

To give some background I first joined the Fool back in '01 one of my first posts describing my financial states can be seen here:

http://boards.fool.com/Message.asp?mid=14805406

Since that time I have: bought that newer car (Honda Civic $17k), paid off student loans (9k) and am currently debt free. I'm in a relationship but we're not living together and have no plans to do so any time soon.

I rent an apartment and don't own a home.

On the asset side it works out as follows:
Toal net worth: 30k
* 10k in RRSPs (think IRA for those in the US) no Roth here :(
* 12k in e-/sleep well fund (6 months living expenses)
* 2k in GIC
* 4k in investments (cash, apcc, phizer)
* 2k in checking account

Each month I sock away $600 as follows:
- 200 to RRSP
- 200 to E-Fund
- 200 to cash in investments for future stock buys

My monthly take home pay is about $2200. Left over money (after the above) goes to expenses, misc costs and fun. :)

I'm I being silly? Am I doing well? What thoughts or suggestions do people have? Thanks.

R
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roland465,

Each month I sock away $600 as follows:
- 200 to RRSP
- 200 to E-Fund
- 200 to cash in investments for future stock buys

My monthly take home pay is about $2200. Left over money (after the above) goes to expenses, misc costs and fun. :)

I'm I being silly? Am I doing well? What thoughts or suggestions do people have? Thanks.


You are saving ~27% of your take home pay. By my estimation, that is probably close to 20% of gross, figuring you get about 80% of what you "earn." Certainly a respectable amount and you should be comfortable.

Could you save more? Probably. Do you "need" to? Probably not, it depends on your goal. How important is FIRE to you?

Stay out of debt, keep (increase if you can) saving, avoid stupid mistakes and you should be fine.

FWIW, I think I was saving about the same amount of my take home (away from home now so cannot verify) when I was your age. If I didn't buy a house when I was 27 and continued to rent, I'd have been closer to 40%. I'm at around 40% again -due to increased income rather than frugality. I currently have a financial net worth of about 1.3x annual income. If I hadn't bought the shack, it would be about 2x.

Personally, I would like to find good statistics for net worth vice expenses.... that's the only measure that matters!

FoolNBlue (Who will look for roland in FIREland)
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What thoughts or suggestions do people have?

Personally, I would stop putting the $200/month into the Efund (6 mo. expenses is plenty) and put it into your FIRE fund instead (cash in investments for future stock buys

Jared
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Hey Roland---I hope you don't take this the wrong way, but you asked for suggestions.

As a college grad (assumption based on your college loans), you state that you are taking home about 26K per year after taxes. That probably means that you gross around 30K. I would focus on increasing that number. There is a lot of room for that number to grow. At the same time, try not to increase your expenses too much. And save and invest.
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As a college grad (assumption based on your college loans), you state that you are taking home about 26K per year after taxes. That probably means that you gross around 30K. I would focus on increasing that number. There is a lot of room for that number to grow. At the same time, try not to increase your expenses too much. And save and invest.

Great point! You may also want to get a "temporary" part-time job to get ahead of your debt and get some investing started.

Good luck!

JB
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