Budgeting nerds unite

**snafu** · 03-09-2016, 05:38 AM

Mak3sha, welcome to SA where is discuss and exchange ideas and viewpoints of all aspects of money management. Where are you on the savings spectrum?

**bjl584** · 03-09-2016, 06:27 AM

You're in the right place for all things money management.

P.S.
Please use the default font color to make posts.

**Mak3sha** · 03-11-2016, 11:49 AM

My savings are heading in the positive direction at the moment. In January I became debt free. wahoo! This month I just reached my savings goal of 3 months emergency fund. wahoo again! Next month I become eligible for a 401k at work with 100% matching up to 5%. I rent out the rooms in my house and rent out my truck (2nd vehicle) which covers my mortgage, car insurance, and utilities. My mortgage will end on May 3 2022 (not counting down or anything). I'm a pretty happy camper right now. Taking time to educate myself on how to get even more ahead.

**Singuy** · 03-11-2016, 02:58 PM

Originally posted by Mak3sha View Post

My savings are heading in the positive direction at the moment. In January I became debt free. wahoo! This month I just reached my savings goal of 3 months emergency fund. wahoo again! Next month I become eligible for a 401k at work with 100% matching up to 5%. I rent out the rooms in my house and rent out my truck (2nd vehicle) which covers my mortgage, car insurance, and utilities. My mortgage will end on May 3 2022 (not counting down or anything). I'm a pretty happy camper right now. Taking time to educate myself on how to get even more ahead.

Good job and keep it up! Yeah people usually roll their eyes when you start talking about financial responsibilities.

**snafu** · 03-12-2016, 05:42 AM

Good start, smart to plan for current expenses and long term savings like 401K. I've no idea how investment savy you are so I suggest you begin now, to look at what 401K investment choices offered by employer. Pay close attention to the fees, management expense ratios or whatever they call them. They are often hidden and whisk your money into their pockets whether the market is going up or going down. How does this new investment fit into your over all, long term plan. Are you eligible and is it in you interest to a open a ROTH at some point? What was your Net Worth 12/31/2015? Where do you realistically expect your Net Worth by 12/30/2020?

Suggest you check home and vehicle insurance to make sure you are getting the best rates for the same coverage. Most people don't realize how the giant re-insurers and commissions work.

**Mak3sha** · 03-16-2016, 11:26 AM

I just finally got into the 401k information.. not to sure how to understand the fees, etc. What should I be wary of? I'd like the 401k because its free matching money but my back up , future choice is a Roth IRA.

**snafu** · 03-16-2016, 07:50 PM

You need to know what [if any] matching percentage is offered by your employer. Are you currently eligible for the match? If not, what date? It's important to capture any free money. Ask if you are 'vested' and the date. Since this is the beginning of your investment, I suggest you start simple and easy to understand. What is on the list? Vanguard or choice of what companies?

**Mak3sha** · 03-17-2016, 12:48 AM

My begin date is within the next 2 weeks. I can't remember my hire date exactly.

They are offering our 401k through fidelity at 401k.com. They offer a 5% of income match.

The fees all vary. I know there is an at least $44 per year recordkeeping fee. I think the rest of the fees vary based on your investment.

I'm interested mostly in the 401k because of the free matching money. But sometimes the complexity makes me feel like its not worth it and to focus more towards an IRA.

**feh** · 03-17-2016, 05:38 AM

Originally posted by Mak3sha View Post

I'm interested mostly in the 401k because of the free matching money. But sometimes the complexity makes me feel like its not worth it and to focus more towards an IRA.

It's not that complex. It would be a huge mistake not to take that 5% match.

**snafu** · 03-17-2016, 05:38 AM

Mak3, I hope you will join the 401K plan offered as soon as eligible and contribute sufficiently to capture the entire 5% matching [free] money. Sums contributed at the start of your career compound to benefit you the most. Fidelity is an excellent investment and at start I suggest their USA Index Fund. You can look at the details of the fund and the 10 top holdings on line. Expect the value to vary but just keep to a plan for the first five years. That's a good point to re-evaluate your Net Worth.

Once you are confirmed as a 'permanent' employee, no longer on 'probation' [or whatever term that specific employer uses] I hope you'll open a ROTH account within the parameters your income allows for the year.

I hope you'll look at a couple of quick reads to better understand your money, investments and possibilities.

**Jluke** · 03-17-2016, 05:49 AM

Originally posted by Mak3sha View Post

I'm interested mostly in the 401k because of the free matching money. But sometimes the complexity makes me feel like its not worth it and to focus more towards an IRA.

don't complicate it. put in 5-6% and select a few funds with a low cost.

set it and forget it.

contribute to a Roth too.

**Mak3sha** · 03-17-2016, 11:26 AM

Thank you, appreciate all your inputs.

**clatoden99** · 03-18-2016, 01:49 AM

I have done nothing else than than thinking about creating wealth for myself and others ( I have acquired a few academic degrees in the meantime

)

Fortunately I find the path and its working good for me. Considering we will have to eat and pay the bills, we always have to think how to best utilize our resources and investing with something you understand will help you to make this process easy.

Budgeting nerds unite