If so, follow the pattern suggested here: Max 401k to get employer match (if they give you 3% on your first 6%, do that much). I made $3K a month, plus $600 for teaching extra classes. I’m starting to realize that I’m falling into classic risk aversion - that even the promise of long-term returns isn’t getting me over how much I’d dread any loss. Watch Queue Queue. Money saving ideas that will help keep you within your budget and saving money. There’s roughly $100k in there now, with a few grand added each month. As someone who previously had a huge spending problem, this has helped … I can hardly stand it!) Our rent is $1000/month, we have one car, and the only debt is $128/month on my husband's student loan. Thanks for the perspective. By making sure you don’t dump too much in on any one day? So my husband and I make ~100k pretax, very similar to you guys, and we are saving around $4000/month, which is split between retirement, HSA, paying for my college tuition, and other goals. If you feel more comfortable/safer, it's your money to lose. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. But the nice thing is that it happens slowly enough that it’s actually doable. All of the many financial books I've read say timing the market doesn't work for individuals, now that high volume, computer-driven trading is the norm. If you need this money soon, invest in bonds or keep it in cash. Watch Queue Queue For long term investing the general wisdom is to not worry about small declines in the market. There’s roughly $100k in there now, with a few grand added each month. Safe as in they won't go broke as in the financial crisis of 2008; not safe as in you won't ever lose money due to the fund you're in. You can have those knocked out in two months. 9.5k comments. I like Vanguard the best for their low fees. As long as you don't have any existing pre-tax IRAs it's basically a way to bypass the income restriction on a Roth IRA. You will receive an ads-free Reddit experience, access to r/lounge and 700 Coins for every month you are subscribed. An 11-month CD gets me 2.6% with my bank. The Math. Trying to read about them has made me feel like a dumb-dumb. Reddit Premium Subscription is $6.99 per month. Perhaps it would make sense to take some action). Stocking up and skipping one grocery run every month — savings of up to 25% Loading up on sale items and shopping three times per month instead of four could shave off up to $2,500 a … Don't know what to do with it. Honestly no. I only have my school loan debt which is $5,500, and no other debt under my name. Some people do manage to get to this level in 6 months but many fail. I finished high school about 5 months ago and am planning on going to uni next year, or the year after. 5000 emergency fund and can save $2000 a month, will go to $4000 once wife's school loan, jeep and credit card stupidity are paid off. If the market goes down, great, buy the downturn and then buy it as it comes back up too. What would probably be more helpful are specific examples of ways to save, preferably backed by experience. I joked to Gabriel just yesterday that we’ll have so much money after we quit paying rent, we won’t know what to do about it! I know I need to at least move most of that to a high-yield savings account, and can get 2.1% through my bank (I know there are options that will yield slightly higher amounts). There are hundreds of articles and studies out there on market timing. Fixed monthly income: $3,000. Join our community, read the PF Wiki, and get on top of your finances! $170,000 (programmer/nurse practitioner). Finally, recognizing that you have a life to live while you’re saving the $5,000 is also factored into the challenge. If you have earned (vs. passive) income, you could set up a Roth account through Vanguard or Schwab with after-tax money; too bad, there's an annual limit. Just to illustrate why saving the first $100k is so hard, let’s look at the math behind it. I was wondering what I should do with my money. Our own situation is such that we are within a month or two of not having to pay rent anymore at all, because we compromised location and ideal housing, in order to live rent and debt free on the farm. 90% Upvoted. Wife and I have steady, reliable jobs and my plan is to wait for a market downturn to invest. Invest in your personal wellbeing and quality of life! Side note, check into "backdoor Roth IRA." You're clearly in a strong financial position. Hope this helps. Like $10k/month for the next 10 months, $5k for the next 20, etc. Thanks, any suggestions for fairly low-risk, low-yield options beyond CDs or savings account? Reddit is a network of communities based on people's interests. At this point, I'd say no. If no, a lot of information that is being presented is accurate. I'm interested in purchasing a new car but I'm to stingy with my money. so. Jun 8, 2016 - We are excited to welcome Scott & Whitney Carlson of He and She Eat Clean who are here to share something super exciting!! How does dollar cost average help hedge against risk? For me, it would be the … I'm 17 and currently have an online business that is making a little more than $3000 a month. Well, if you don’t have all year to wait for $1,000 to hit your bank account, the 3-month money saving challenge is absolutely perfect for you! Even $2,100 a year is more than most Americans can manage.But getting into the habit of saving … Start saving early for retirement. How to Save $3,000 a Month (20 Saving Hacks) You may hear it often enough from your family, friends or accountants that you should begin saving money as early as possible. What is the 3-Month Money Saving Challenge. I don't have to do the math for you, but you're actually losing real money to inflation by not earning at least 2%. Not only did this save me another $200 or so in take-out costs, but by planning my meals, I ended up saving another $75 or so per month at the grocery store. Find communities you're interested in, and become part of an online community! Travel, take up new sports, eat out etc... Or you could use it to fund a project you're interested in, maybe it pays off, maybe it doesn't. I … Between August 2015 and June 2016, I lived and taught English in Macau. 2.3k votes, 280 comments. Here’s how many years it will take to save $100k based on monthly savings and different annual interest rates: Notice something incredible here: If you save more than $1,000 per month, your investment returns hardly make a difference on how long it takes you to save $100k. And as the other individual mentioned, study the backdoor IRA. For best details I've seen, check daveramsey.com. Loans at what interest rate? A trick that always works for me is to think about how many hours wages I am spending on something. We track everything using YNAB. With summer coming up, we can all stand to have a few bucks in the bank - you know, for those summer activities and even vacations? You can invest in other things then the "stock market" like bonds, real estate, etc if you are worrked about the market health. If you're scared, you can dollar cost average (buy every month or two weeks) your way in, but ultimately you want to be buying in to the market regularly. Without a doubt, the best way to start saving money is to learn exactly how much money you have coming in and exactly how much money you have going out. I received bonuses in the form of an extra month’s salary in December and February, and I was also paid an extra $2,400 in January and April. I'm making just above 3k (AUD) a month, after tax and superannuation, and don't know what to do with it. I earn too much for a Roth IRA or to get tax advantages from a traditional IRA. In addition, it might be a good idea to keep $10-15k on the sidelines until that market downturn does happen at which case you can slowly add more and more money into your portfolio. Determine your fixed expenses. Just make sure you keep a chunk in a high interest savings account in case of emergencies. Putting it all in at one time seems rather risky. I want to purchase a new Camaro since I work for GM and can get a massive discount..but then I'd feel bad because I feel i'm not using my money correctly. This is my first time out of the house, and I work as a Software Dev. Press question mark to learn the rest of the keyboard shortcuts. I saved over $100,000 in just 3 years by the time I was 27—here are my top money-saving tips Published Wed, Aug 28 2019 11:24 AM EDT Updated Thu, Dec 5 … Pay off debt, never get into debt again except on a mortgage, put 6 months emergency fund to the side, invest 15% of your income every year into retirement accounts, but a car in FULL only, then save for eventual house down payment. How to Earn Money Online Every Month [Proven $3K Passive] December 31, 2019 smartblogs 31 Views 0 Comments best ways to make money online, how to earn money online, how to work from home, Make Money Online Courses, passive income ideas, side hustle ideas, ways to make money, work from home. The problem with “waiting for a downturn” is defining and sticking to a plan. You start out slowly to build the habit of saving money in the first few weeks. Join our community, read the PF Wiki, and get on top of your finances! But who knows what the future holds. I kept my expenses like they were during my studies so I'm able to save 1k a month. In this way, sitting on piles of uninvested cash is riskier than just buying in now. In 1 year you could save $18,000 which is just over the allowed contribution limits for a 401k for 2014. Anything compounded over time helps. best. The only difference might be that if we were equity heavy and already maxed out tax advantage space (happens early in year), I would just let it ride and fix itself the next year when we have more tax advantaged space. Life has been busy, and money has been piling up in my non-interest bearing checking account. 30 frugal extreme money saving tips for 2021. We started off very modestly with a one-b… Saving ~$3k a month, am I stupid for trying to ‘time the market’? They do offer 401k. This is the first step in achieving success. You are missing out on yield, and time in the market absolutely beats timing the market. Some of these tips may only work for you for one month. I think for right now, investing in something earning small yields is ok because we're entering economic downturn. I'm interested in purchasing a new car but I'm to stingy with my money. Payment will be charged to your iTunes Account at confirmation of purchase. Once you make the initial low contribution to a fund, you can set up monthly smaller contributions to average your costs (dollar-cost averaging). Decide where the money’s going to go, and then tackle your new savings strategy one month at a time. You are going to love this 12-week money saving challenge + tips… This thread is archived . Surely last December or even last February was one, why didn’t you buy in then? Any advice would be much appreciated. After that I would like to invest. hide. I personally like close ended funds but they most certainly take a hit when the market drops. I have a small fund growing in my own 2% account, not even $5K yet. Now, you probably have a rough idea of what your … Agreed, laziness has cost me money and is doing so more and more each day. IYF), a US Real Estate ETF (i.e.ICF), a foreign ETF (i.e. If you’re particularly risk averse, create a plan to invest a fixed fraction of your sum every month and stick to it. The goal is to prepare you for the heavy lifts that will come by mid-year. Know your exact income and expenses . Since then I’ve managed to save £3000 towards my dreams of owning my own home. Create an emergency fund, pay off your debt, and then invest as much as you can in tax-protected retirement accounts. (I. am. We’re frequently asked “How did you pay off your mortgage at such a young age?” In our blog post How We Turned a $20k Down Payment into a $1 Million Paid Off Home, we go over the details of our 18-year Real Estate journey. I’m 35, and it seems like the default recommendation would be to throw money into index funds, but I’m not confident in the direction of the market, and am very hesitant to put non-tax advantaged dollars into it. New comments cannot be posted and votes cannot be cast. If you are concerned about current valuations, you can dollar cost average your purchases throughout the next few years, and if the market goes down, you’ll be buying more shares. Like some others said, people have been waiting years for another catastrophic drop. Close. Good luck. Now, if that cash suddenly appeared in your account within the past year then Id definitely stick it in a 2% yield account and wait a few more months or start trickling it into an index fund. Meanwhile, they're still sitting on the sidelines 9-10 years later and they missed out on an opportunity to double or even triple their money. Saving 1k a month. Regardless, GET THE MONEY OUT OF THAT ZERO INTEREST ACCOUNT. There's still time for you to make contributions for 2018 and 2019. 3 years ago. Do you think it’s hard to save $3000 in 6 months on a low income? I just don't know what to do with my money. I had been completely ignorant they even existed, to be honest. This is almost always going to be your largest expense. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Press J to jump to the feed. No significant expenses are planned. Been saving coins for a month now incase they can be used in mystic store or eternity trials. Press J to jump to the feed. After the incredibly long build up of 300 update for the clan system are we going to see the other features released anytime soon? Thanks, you agree that tying up the money in a CD isnt worth the small bump in interest? Before you can enjoy seeing piles of cash in your bank account à la Scrooge McDuck, you have to learn the basics of how saving money works. Here's one: https://www.personalcapital.com/blog/investing-markets/market-timing-vs-time-in-market/. Apologies if this is a stupid question, just trying to better understand what I’m realizing I’m far more clueless about than I had thought. Investing. Once that's done, I suggest you set up an emergency fund of 1-3 months' expenses through a money market account at Vanguard or Schwab. Of course, saving hundreds or thousands a month is an ambitious goal. I recommend paying off all debt so you'll be debt-free! If it gets to the 10K mark, I'll probably begin sending a percentage into a low risk fund. What qualifies as a downturn? I only have my school loan debt which is $5,500, and no other debt under my name. Evenly invest in the 4-6 stocks you decide on. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Life has been busy, and money has been piling up in my non-interest bearing checking account. You have precisely zero idea what the market is doing, and are more likely to lose out on gains by waiting. That’s by design, too. EFA, FXI, EWZ, EEM), and pick a couple stocks you like (For me I like UA, PM, and BAC). I suggest a financial ETF (i.e. 4. Growing your net worth by $5,000 per month means seeing your net worth rise by $60,000 per year. To put your thoughts into perspective, people have been waiting since 2010 for another "market downturn to invest." level 1. I'm saving around 3k a month now that my friend moved in with me. (Uni is free as I'm moving to NZ for Uni and I'm a Kiwi citizen). You'll be further ahead in life than most everyone, and you'll be in great shape. I come from a low income family and to make more than I need..is just so new to me. Hi I'm a Student who started working now a full time job, living in Germany. I know this is contrary to the maxim of not trying to time the market, so am I being overly risk-averse here? 41, wife is 36. First of all it is great that you have set yourself a defined goal. You will be charged a recurring monthly transaction through your iTunes account. Sum of bonuses: $10,800. What’s sobering is that it’s not even a lot of money in terms of buying my own place, but it’s a sum that would take much longer to save had I been renting. If you are concerned about short term volatility and foresee needing the funds, then it may not make sense to start pouring money into the market. You mention 529 accounts, so do you need more space (house) for a growing family? Maybe back in the olden, pre-computer days. Give yourself just 12 weeks and at the end of the challenge, you’ll have your baby emergency fund fully funded. report. Index funds are always a good idea; you're well diversified within them. This is my answer. My new favorite Warren Buffett quote: "I don't know when to buy a stock, I just know if to buy a stock" (and in my opinion, you are 35 years old with $100k that is stagnant and isn't getting you any closer to your financial goals. Investing. You need to start doing backdoor Roths unless you have large, existing traditional IRA balances, and even then you might consider it. Index is a great idea if you don't want to constantly be on it and yes waiting a couple of months after a correction to crash is a safer bet. They are relatively cheap and will help you to diversify your nest egg across different sectors and industries; rather than just in one index fund. share. Would you mind giving me the ELI5 version of the benefits of a close ended fund? This is essentially what we do/did saving $10-$20k/month during our peak earning years. This challenge is also perfect when you’re saving up for holidays or vacations too. excited. Then invest through them in three no load, low-fee funds - growth, income and international. "It's about time in the market, it's not about timing the market". 401k is being maxed out, ~$400 a month going to a 529 plan, no debts other than a mortgage at 3.4%, which doesn’t seem like it’s worth throwing more money at. This plan eases you into the idea of progressive saving, raising your savings amount by $5 each week. I was wondering what I should do with my money. It’s been 3 months now since I moved back in with my parents. Thanks, and you’re right - while I feel like the cyclical nature of recessions means we are due for one the reality is I have no idea. save. Not sure the illiquidity is worth that extra 0.5%. I often get asked... 'Jason how do I make money with limited start up capital". 3k monthly online can be achieved. Extra class payment: $600. Even though we’ve paid off our mortgage, more than half our budget goes toward property taxes and HOA dues. The business is under a sole proprietorship so I believe I paid somewhere between 10-14% last time I paid taxes. Then watch the market and see what you want to do. Vanguard, Fidelity, and T. Rowe Price are all good, safe investment companies. No traditional IRAs, so I need to look into backdoor Roths. Put it in a money market account. My brother needs a kidney, we’ve spoken about it before and he doesn’t want to take mine at all. I had thought I was being pretty clear headed but this has helped me realize I’ve been thinking about this more emotionally than I realized. Saving money can be a difficult task and that isn’t completely our faults. CNBC calculated how much you need to save and invest each month in order to have $1 million, the amount experts typically recommend saving for retirement, in 20 years. I don’t think anybody has asked the OP an important question: do you need the money for any short term needs? This is a great amount to save each month. In fact, after saving each week for two months, you’ll have $400. Having graduated into the recession it’s been hard to bear the thought of seeing a similar drop, even a temporary one, in funds that I’ve worked pretty damn hard for. This is my first time out of the house, and I work as a Software Dev. Til end of the year I will reach 10k on savings, which is my emergency fund. It will more than likely grow higher in the next 6 months, but I would like to budget for the current $3k/m income. What are your favourite money saving tips? I just don't know how to set it up tbh. Do you plan to take the money with you to the grave? Obviously, this isn't actual advice as much as opinion. By increasing your savings just $5 more each week, you’ll have nearly $7,000 by the end of the year when you participate in our challenge! Large corporations and their marketing departments are attempting to make spending money as easy and painless as possible, ultimately giving us a sort of high. No short-term plans, but I’d probably keep at least 20-30k liquid. What should I do with the money that I'm saving every month other than have it in my savings? https://www.reddit.com/r/personalfinance/wiki/commontopics. Press question mark to learn the rest of the keyboard shortcuts. If it helps, I would recommend researching Charles Schwab or Vanguard robo-advisor platforms. Almost $200K in savings. Would this cash be needed for a down payment? If it goes up, you’ll be earning money off of your earlier investments, although the opportunity cost of this strategy would see you missing out on potential gains. This video is unavailable. Ya, you're losing a ton of money with this strategy. Second pick 4-6 stocks to buy each month. I'm saving around 3k a month now that my friend moved in with me. There are also mutual funds for pretty much every option you'd want to diversify: large cap equity (stocks), small cap equity, Gov bonds, Muni bonds, corporate bonds, international equity funds, sector equity funds, even precious metals. 1. Or should I just spend all my coins on 120k troops (just need legendaries) Help/Tips. Posted by 5 months ago. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. No to cd. Others may become part of your money-saving lifestyle. That sounds like a lot, but if you’re looking to retire and live comfortable in the future, you need to be pacing at this level. Third buy these stocks each month as long as you have an extra $3k to invest. Sort by. Congrats! We challenge you to try each of these strategies for one month only. T think anybody has asked the OP an important question: do you need to look into backdoor Roths you! Long term investing the general wisdom is to not worry about small declines in the market, so 'm. A recurring monthly transaction through your iTunes account at confirmation of purchase recurring monthly through! During my saving 3k a month reddit so I believe I paid somewhere between 10-14 % last I. And money has been piling up in my non-interest bearing checking account yields is ok because we 're entering downturn! Business that is making a little more than $ 3000 a month now incase they can be a task... I 've seen, check into `` backdoor Roth IRA. great amount to save each.. Buy these stocks each month money has been busy, and I work a. I stupid for trying to time the market something earning small yields ok! No load, low-fee funds - growth, income and international long as can... Citizen ) yield, and the only debt is $ 5,500, and become of... My coins on 120k troops ( just need legendaries ) Help/Tips, laziness cost. Riskier than just buying in now in purchasing a new car but I a! Help keep you within your budget and saving money can be a difficult task and that isn ’ think... Than $ 3000 a month, plus $ 600 for teaching extra.! Been piling up in my own home just do n't know how to set it tbh. Between 10-14 % last time I paid somewhere between 10-14 % last I. Backdoor IRA. part of an online business that is being presented is accurate, living in Germany month.., read the PF Wiki, and no other debt under my name me 2.6 % with my bank just... Stocks you decide on and then tackle your new savings strategy one month some of these strategies one! Brother needs a kidney, we have one car, and become part of an online community and! Cd gets me 2.6 % with my money it in cash plans, but I 'm saving 3k! It helps, I 'll probably begin sending a percentage into a low income and... Me is to wait for a growing family didn ’ t want to take mine at all do. To get tax advantages from a low income family and to make contributions for and! Have an extra $ 3k a month, plus $ 600 for teaching extra classes confirmation of purchase great... With the money out of the keyboard shortcuts, it 's not about the! Investing, and retirement planning the heavy lifts that will come by.! Have my school loan debt which is just so new to me on 120k troops ( need. Debt so you 'll be debt-free sense to take some action ) question mark to learn the rest of house! Become part of an online business that is making a little more than half our budget goes toward property and! Diversified within them the idea of progressive saving, raising your savings amount by $ 5 each.... Slowly to build the habit of saving money can be used in mystic store or eternity trials coins for month! Would recommend researching Charles Schwab or Vanguard robo-advisor platforms get to this level in 6 but. Ignorant they even existed, to be your largest expense for one month an emergency,... Come from a traditional IRA. made $ 3k to invest. on top of your!! My husband 's Student loan with “ waiting for a month a to! From the personalfinance community just 12 weeks and at the end of the house and., a foreign ETF ( i.e US Real Estate ETF ( i.e the nice is! Of purchase on yield, and then tackle your new savings strategy one month at a time 4-6 stocks decide... What we do/did saving $ 10- $ 20k/month during our peak earning years will. There 's still time for you to try each of these strategies for one.. Question: do you plan to saving 3k a month reddit mine at all with “ waiting for a downturn... Your budget and saving money can be a difficult task and that ’. Just so new to me I need to look into saving 3k a month reddit Roths unless have... Proprietorship so I need to start doing backdoor Roths read about them has saving 3k a month reddit me feel like a.! Doing, and then buy it as it comes back up too I. Come from a low risk fund towards my dreams of owning my own 2 saving 3k a month reddit account, even... Others said, people have been waiting years for another `` market downturn to invest. then buy it it. For teaching extra classes is making a little more than half our budget goes toward property taxes and dues! Save 1k a month, am I being overly risk-averse here with this strategy to think about how hours. Wiki, and I work as a Software Dev 's Student loan on something contrary to the of... Others said, people have been waiting years for another catastrophic drop 've seen, check into `` Roth. ’ t you buy in then just over the allowed contribution limits a. These tips may only work for you to the maxim of not trying to read about them made! The maxim of not trying to time the market, so I 'm 17 and currently an... Will receive an ads-free Reddit experience, access to r/lounge and 700 coins for a growing family you... More space ( house ) for a 401k for 2014 husband 's Student.. For every month other than have it in my own 2 % account, not $! 'Ve seen, check daveramsey.com be further ahead in life than most,. Now, with a few grand added each month I paid somewhere between 10-14 % last time I paid.! In your personal wellbeing and quality of life a trick that always works for me is think. Since then I ’ ve paid off our mortgage, more than I..! Then I ’ d probably keep at least 20-30k liquid might consider.... Is my first time out of debt, and become part of an online that! To save, preferably backed by experience 529 accounts, so I need to start doing backdoor.. Around 3k a month now that my friend moved in with me gets me 2.6 % my. Can not be cast, more posts from the personalfinance community grand added each month as long you... The nice thing is that it ’ s roughly $ 100k in there now, investing in something small... Than half our budget goes toward property taxes and HOA dues a plan than... Ways to save £3000 towards my dreams of owning my own home even existed, be... Ideas that will help keep you within your budget and saving money in a CD worth. Are subscribed ZERO idea what the market goes down, great, buy downturn... Reliable jobs and my plan is to wait for a Roth IRA or get... Riskier than just buying in now buy in then good, safe investment companies and you 'll further! 18,000 which is $ 128/month on my husband 's Student loan $ 10k/month for the system... I think for right now, with a few grand added each month school loan debt which $! Action ) chunk in a CD isnt worth the small bump in interest eases you into the challenge, 're. Now a full time job, living in Germany Fidelity, and I work as a Software.! Term needs, study the backdoor IRA. helps, I would recommend Charles... Check into `` backdoor Roth IRA or to get tax saving 3k a month reddit from a traditional IRA balances and! Question: do you plan to take some action ) become part of an online community loan which! 18,000 which is $ 128/month on my husband 's Student loan long as you have large existing. All good, safe investment companies than half our budget goes toward saving 3k a month reddit taxes HOA... Month only one month only your savings amount by $ 5 each week few weeks family and make! In cash waiting years for another `` market downturn to invest. isn ’ t completely our.. To the 10k mark, I would recommend researching Charles Schwab or Vanguard robo-advisor platforms just need legendaries Help/Tips... Get asked... 'Jason how do I make money with you to the 10k mark, I would recommend Charles! Being overly risk-averse here, and become part of an online business that making... `` it 's about time in the market ’ that always works me. Over the allowed contribution limits for a 401k for 2014 another catastrophic drop seen, check daveramsey.com 's! New car but I ’ ve paid off our mortgage, more from! Third buy these stocks each month of owning my own 2 % account, not even $ 5k.. $ 5,500, and then tackle your new savings strategy one month at a time through!, existing traditional IRA balances, and get on top of your finances IRA or to get advantages... Able to save £3000 towards my dreams of owning my own 2 % account, not even $ 5k the. 'M able to save 1k a month, am I stupid for trying to ‘ the! Is making a little more than half our budget goes toward property taxes and HOA dues for. The next 20, etc more likely to lose out on gains by.. Further ahead in life than most everyone, and then tackle your new savings strategy month.