FinancialStability #NetworkBuilding #InvestmentStrategies #PartTimeJobs #RemoteWork
Understanding Your Current Financial Situation 🧾
At 26 and married, you’re earning a solid $84,000 annually as an Industrial Engineer. Let’s break down your financial backdrop:
- $17,000 in HYSA (Emergency Fund)
- 10% Roth 401k contributions with a 5% employer match (currently at $5,500)
- $3,500 in Roth IRA and $3,000 in trading account
- $45,000 in another HYSA for rent/deposit
- Debt: One car fully paid off ($36,000), $22,000 remaining on the second car
You’ve laid a strong foundation – kudos! Let’s explore ways to further fortify your financial health and improve your net worth.
Enhancing Financial Stability 💰
Maximize Retirement Contributions 🔄
- Continue 401k Contributions: Stay committed to your Roth 401k contributions. The 5% match is essentially free money!
- Increase IRA Contributions: Aim to maximize your Roth IRA contributions annually. The limit for 2023 is $6,500 if you’re under 50.
Diversify Your Investments 📊
- Explore Other Investment Opportunities: Investing in diverse asset classes like stocks, bonds, ETFs, and real estate can shield you from market fluctuations.
- Research & Education: Use online courses, books, and financial advisors to expand your investment knowledge.
Build Passive Income Streams 🏠
- Rental Property: Consider investing in rental properties if feasible. The rental income can supplement your earnings and grow your net worth.
- Peer-to-Peer Lending: Platforms like LendingClub offer investment opportunities in personal loans, allowing you to earn interest.
Tackle Existing Debt 🚗
- Accelerate Car Loan Payments: Prioritize paying off the remaining $22,000 on your car loan. The faster you eliminate this debt, the more you save on interest.
Increasing Earnings with Part-Time/Remote Work 💻
Finding Remote Work Opportunities 🔍
- Freelancing: Websites like Upwork, Fiverr, and Freelancer can connect you with opportunities in your field or new areas.
- Consulting: With your engineering background, consulting services are in high demand. You can charge for your expertise.
- Remote Customer Service: Companies like Amazon, Apple, and others often hire part-time, remote customer service representatives.
Exploring Part-Time Gigs 🌐
- Tutoring: Use your skills to tutor students online through platforms like Chegg Tutors or Wyzant.
- Content Creation: Start a blog, YouTube channel, or podcast around your expertise or interests. It can generate passive income through ads and sponsorships.
Collaborating with Your Spouse 💬
- Combined Financial Goals: Regularly discuss and align your financial goals with your spouse.
- Savings and Investments: Plan how her potential income of $50-$60k can be allocated towards savings and investments.
Conclusion 🏁
Enhancing financial stability and growing your net worth at 26 is achievable with strategic planning and disciplined execution. Diversify your investments, explore remote and part-time work opportunities, and maintain open communication with your spouse about your financial goals.
Stay proactive and keep learning. Your financial journey is a marathon, not a sprint. Good luck! 🍀
What’s the problem?
I’d you can afford to, to ahead and no up those contributions to your employer sponsored plan and … Oh please enjoy life a little.
So you only have 1 income making $84k/yr and you bought 36k and 48k cars? Those cars are too expensive for your income. Even once your wife gets a job those are too expensive. You’d save a lot more without a large car payment.
Pay off second car asap or sell and buy cheaper used. Never go into debt on a depreciating item, cars are not assets.
Otherwise doing well. Bump your roth ira to max.then slowly climb roth 401k to 15%., say 1% increase every 6 months
You’re doing a lot right, but the cars seem quite excessive. You have one very important and quickly diminishing asset on your side, and that is TIME. The more frivolous spending you do early on, the more exponential the loss in wealth you have later in life. The money you have in one of those cars could be worth millions by retirement. Yet, the car will be worth near zero in 10 years.
Consider this chart I use for people to understand the value of time and money….
$100 invested a month at 10% return until the age of retirement.
It shows the total investment over that time, and what it will be worth at retirement age.
15 years old
$60k = $1.4 Million 23x
20 years old
$54k = $869k 16x
25 years old
$48k = $535k 11x
30 years old
$42k = $328k 7.8x
35 years old
$36k = $199k 5.5x
40 years old
$30k = $119k 4x
45 years old
$24k = $69k 3x
50 years old
$18k = $38k 2.1x