23 yr old Looking for advice to plan for my future

[bean2005211]

I consider myself pretty lucky to have lucked up and got the job that i got without a college degree. I'm 23 yrs old work at a steel mill and make between 75-80k/year. April will give me 4 years with the company. While i've put off planning for my future way to long its time for me to start looking ahead. Still live with parents for now and am in no hurry to move out. I currenty have $1800 in monthly obligations which are payments only for toys that i have purchased. I still think bringing home around $4100-4200 a month i can invest and start saving for my future and working my way out from under the debt. One of the options ive looked into is a Roth IRA or buying company stock which is limited to $300 a week and they match it 10% off the top. Hopefully one of you financial gurues can offer me advice to help me become succesful. Thanks in advance and ill look at any and all responses

[greenskeeper]

how much do you owe on your "toys"? Is that the debt you speak of?

23 and living at home...wow have times changed.

company stock matching is a plus. How stable is the company?

What are your short and long term goals?

How long are you planning to live with your parents? I don't know where you live but you probably make enough to be on your own, experiencing the real world.

[bean2005211]

Approximately 65k in debt on toys.... which i know is a disgrace to have to say
The company is Nucor ... I would say they are stable beings they've never layed anyone off since they have been in business.
Short term -- i would like to get out of debt on the stuff i have which are non-necessities and would like to move out around 26-27 if right oppurtunitie presents itself (place that would suite me in the area i live in now.
Long Term-- by the time im 50 i would like to wake up and know that work is optional

[disneysteve]

List each of your debts. What is it for? How much is owed? What is the item worth?

Odds are the answer you get from most of us will be to sell the toys. I can't imagine a 23-year-old making 80K living at home. Obviously, it isn't about the money. Time to grow up and start your adult life. Get your own place. Get rid of the toys. Pay off the debts. Then you can start thinking about investing for your future. In your current situation, it is premature to even be talking about investing. However, if there is a 401k with a company match, I would put in enough to get that full match. I wouldn't do the company stock deal, though, because you don't want your income and your investments both tied to one company. That's putting all of your eggs in one basket.

[bean2005211]

1. Truck owe $22000 payment=$589/month Worth- somewhere around 27-28k
2. Boat owe $17000 payment $290/ month worth - roughly 12-14k
3 Camper owe $20500 payment $515/month worth 23k
4.ATV owe $4200 payment $265/mopnth worht 4500??
5 $4200 owed on a credit card usually pay $200/month more when i can afford to

[bean2005211]

And your other regard about the 401k match.. my company matches a percentage(depending on how much money the company is making 0-25%) of the first 7% contributed. Economy is still low in most places but this year i have contributed 375$ or 4% and they have matched $19

[kork13]

Wow... Believe me, I understand the desire for toys. I'm 24 myself, and just last week spent $3k on what would probably be called 'a toy' for myself. But you're sacrificing your future security for the wants of right now. My best advice would be to SELL THOSE 4 TOYS. Pay off all of the debt you have right now, then restart your financial future the RIGHT way.

You can absolutely afford to have nice things--you make a great income. But you need to save up for those luxuries. Prioritize your retirement savings and future goals. Build for yourself a spending plan, which lays out where you spend your money. Save at least 10-15% of your income toward retirement, and at least 5-10% toward future goals, such as buying a home, future car, boat, ATV, etc. purchases, and anything else. Spend no more than 5-10% of your income on a practical car (but getting something you enjoy is perfectly fine, as long as you can actually afford it). Limit your "entertainment" expenditures, including restaurants, concerts/events, vacations, and so on.

What I'm trying to get at is this: if you look ahead and plan your spending smartly, you can enjoy all of the things you want while still taking care of your long-term future and not saddling yourself with boat-loads of debt (literally, I suppose). Do this the smart way, and you can actually be WEALTHY as opposed to simply having alot of stuff, and alot of debt.

[disneysteve]

1. Truck owe $22000 payment=$589/month Worth- somewhere around 27-28k
2. Boat owe $17000 payment $290/ month worth - roughly 12-14k
3 Camper owe $20500 payment $515/month worth 23k
4.ATV owe $4200 payment $265/month worth 4500??
5 $4200 owed on a credit card usually pay $200/month more when i can afford to

Sell the truck. Save $589/mo. Take the $5,000 profit and buy a good used car with cash.
Sell the camper. Save $515/mo. Pocket $2,000 profit.
Sell the ATV. Save $265/mo.

Take that total monthly savings of $1,369 and the $2,000 from the camper sale and pay down the boat loan. At that point, you'll be able to sell that and break even, thus saving another $290/mo for a total savings of $1,659. Use that to pay off the credit card in less than 3 months. Ta-dah! Debt-free in 4 months!

[Mr Nice Guy]

Well im guessing you dont have a college degree then. So if something happens with your job, you are workin at McDonalds and still have all those monthly obligations to fill. Either pay them off or sell them, soon. Dont worry about what your friends will say.

After that, build up an emergency fund. Cash is liquid, cash is king. If your friends want to harp on you about selling your boat, just show em your checking account balance

[snafu]

You've had great advice on getting yourself out of debt. Paying interest and fees on toys that go down in value every month/year is like standing outside and burning about half of your money just for the heck of it...month after month.

How do you feel about continuing your education? Will you be able to do your current job when you are much older? Are their many 55 y/o guys working with you? There are tons of courses offered on-line. There are also lots offered in the evening at Community Colleges. Do you like the idea of DeVry's? It's pricey but graduates I've met loved it!

I am guessing the company makes rolled steel which has been doing well the pat 5 yrs. and looks positive going forward. Do you have money set aside to start a long term investment plan? I'd buy the stock IF it's priced correctly [Price/earnings ratio under 13], IF you get a discounted price and not pay commission for purchases. The problem going forward is the competition + whether the economy will go continue to go forward. If you see problems you can sell the stock! There are tons of books like 'Millionaire Next Door.' That profile easily fits You if that's what you want.

[bean2005211]

Thanks guys this is all good stuff

[savingdealz]

like this post.

[MrPolarZero]

Well, you need to first find yourself a good job. Once you have dealt with that, then you can move into working on other things in your plans.