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Thanks to BFC I bought and just finished reading All Your Worth. Five months ago I got a new job with a nearly 25% increase in pay and I've been very haphazard with how I've been spending that pay increase (although quite a bit did go into home improvements and occasionally tossing chunks into savings.) At my last job I made enough to be doing okay but never really had a solid safety net aside from a 401(k) which my employer didn't contribute to and maybe $500 - $1000 for a safety net. Two days ago I created two new savings accounts on ING for "Savings" and "Wants-Savings" and next month when my new job's 401(k) kicks in I'll be at 19.1% savings, (including matching) 54% Must-Haves and 26% for Wants, which I'm totally comfortable with. I'm hoping to build a new house in 2-3 years and finally have a plan to start making that a reality that I've been putting off for too long. I've owned my current home for 9 years so I have equity built up in it, but my new home will cost about double what my current house is worth to build so I need to get serious about preparing for that. I finally feel like I'm able to do so. My only regret is that I didn't have All Your Worth to read 15 years ago when I was just starting out so I could have avoided a whole lot of terrible mistakes I made. I've been recommending it to all my friends since I started reading it. Annakie fucked around with this message at 23:10 on Jul 12, 2012 |
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Jul 12, 2012 17:15
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I don't think "All Your Worth" is for you. You're already way ahead of where most people reading AYW would start. Even I'm in the middle of the pack and a lot of it was "I wish I knew this a long time ago, but I'm already past this part." It's more for the people starting out, or for people with huge debt and no savings. I'm more in the situation of no debt aside from mortgage/car but also no significant savings and it was helpful, but not excessively so and there were a few chapters I skipped entirely. It did have some good stuff near the end about what to do now that you're in the position you are where you have savings you're not sure what to do with and you're out of debt, but not super detailed like I'd imagine you want. You probably want a more advanced book, but it's only like $11 on Amazon so it wouldn't hurt to look if you're still curious. The main advice after you've got your money balanced so you're putting 20% into savings, 50% into things you need (housing, food, car, etc) and leaving 30% left over for whatever you want, is to invest in index funds with your excess savings after you have a safety net of 6 months worth of "Needs" money saved up. Annakie fucked around with this message at 21:35 on Jul 13, 2012 |
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Jul 13, 2012 21:32
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