Today, they have a growing stash, as well as a bold goal to amass $2 million in savings within the next 15 years.
Both Jeff and Leonora, 49 and 52, are registered nurses with advanced credentials.
Even the decision to enter the medical field was based on the couples' desire to secure high paying, dependable work. They went back to school for their nursing degrees (paying cash of course) and graduated in 1996.
I would like to hit the $1 million mark before I'm 50 (in 13 years) but I'm way behind as I was a SAHM for a couple of years and worked part-time while my kids were small. My husband will be no help in this regards so I'm on my own in my quest. But I think I can do it.
if i bring home 2000 a month net we will be putting 1000 on to student loans per month to pay them off (will take 1-2 years if i finish my BSN) 500 into a retirement savings, 100 to a regular savings and 50 to my daughters savings. when the student loans are paid off then it will be 1000 into the retirement account, and will adjust the other accounts. (this will be on top of a 401k contribution)This is with a fairly low estimate of new grad RN earnings for this area.
I have some debt from school also but, it's only costing me 4 percent. So, instead of paying it off early, I'm putting more money into my tax deferred retirement account. Why? Because once I start working 35 percent of my money is going to go to taxes. If I put that tax money into the retirement account, I can make up to anywhere from 4-8 percent on that tax money for the next 20 years.
So, that's investment earnings I normally wouldn't have on 35 percent of my income if I pay the taxes and then pay down the debt at 4 percent. And, if I only earn 4 percent on the non-tax savings, at worst I break even with the 4 percent debt. But if I make 8 percent on that savings then I still come out ahead by 4 percent even with the cost of the debt.
well i'm still young only 22 years old, and can you advice me guys regarding how to be financially intelligent? hehehe.. i know this sounds weird.. but really i wanna here from you guys how to save and also be financially intelligent. because in nursing were not taught how to be one... thank you and God Bless!!!
Well with a nod to Timothy and Roy's discussion, it really is pretty simple at your age. Save and invest at least 10% of your income. Ideally, you should do it before you even touch it, in other words take the money out of your paycheck and have it direct deposited. If you have a 401K, max it out. Find a high-interest savings account or CDs and keep an emergency fund with at least 6 months of expenses in those, your best bet is to use an online bank. If you don't have a 401K, get an IRA. Keep your debts low, try to keep credit card use for emergencies only. Do not buy a new car every 4 years, remember you don't need every technological gadget ever made and live within or below your means. It sounds boring but you can live well and be financially intelligent. Read the book "The Millionaire Next Door" recommended by another poster on this forum. It will change the way you look at spending.
I wish I had learned this lesson early but it's not too late for me and you are in a good place at only 22. Good luck to you!
As for me, we started early. I come from a family with NO money--my mom raised 4 kids on $800 a month in child support and help from her family. Nothing. My goal in life was to have enough money for everything I need, and some of what I want. And I have that.
At 28, my husband and I already have over $20K in retirement accounts, both through a voluntary investment program through work and through 401k plans. We both work for the state, and have a pension plan waiting for us (we contribute around 1.2% of our salary to it, the state double-matches it, and based on years of service, we get a pension--since we both started working in the state system in our early 20's, that is a lot of years of service!).
We bought a condo 6 years ago, then sold it earlier this year for twice what we paid for it, and used the profit to buy a $400K house with lots of instant equity. We plan to pay this house off, or at the very least DOWN significantly in the next 10 years, then sell it and buy a better one. We have no debt other than our mortgage, pay off the credit cards in full each month (we have a card that earns us airline miles with every dollar we spend--we haven't paid for a plane ticket in quite a while) We own a timeshare, paid in full with cash, so vacations are somewhat set. We travel a lot, have a reliable car, season tickets to three professional sports here in town, etc. We have all that we need, and some of what we want. It really hasn't been hard to save money, to put it aside for later. My husband and I each take 10% of our paychecks to go directly into investments and retirement accounts, and send several hundred dollars each month into savings, where it is not to be touched. We don't feel like we skimp out on what we are doing--we are not missing out on fun, but we still have a ton saved for the future. No kids yet, but when they DO come, we will be ready for them both emotionally and financially.
Just decide to do it. Save money, plan ahead. You don't have to give up fun now, just be smart about it.
Pardon me, but what kind of state job is that? I'd love to work there if I can buy a condo at 22.
Pardon me, but what kind of state job is that? I'd love to work there if I can buy a condo at 22.
I worked with a home-schooled nurse who graduated with her ADN at 18 and she bought a two-bedroom home at the age of 20. RN's seem to be a good credit risk if your credit is good to start with.
I have some debt from school also but, it's only costing me 4 percent. So, instead of paying it off early, I'm putting more money into my tax deferred retirement account. Why? Because once I start working 35 percent of my money is going to go to taxes. If I put that tax money into the retirement account, I can make up anywhere from 4-8 percent on that tax money for the next 20 years.
So, that's investment earnings I normally wouldn't have on 35 percent of my income if I pay the taxes and then pay down the debt at 4 percent. And, if I only earn 4 percent on the non-tax savings, at worst I break even with the 4 percent debt. But if I make 8 percent on that savings then I still come out ahead by 4 percent even with the cost of the debt.
:typing
this is a good point, and I when the time comes we will probably see what the "exact" plan will be. the important things is that we don't plan to upgrade our already comfortable lifestyle. 30 yrs of 1k/month into a savings plan will end up at 360k not counting any sort of interest from any investment or CD/market interest accounts. Also if I am bringing home closer to 3000/month then we instead plan on putting 1500k/month. As my husbands electrical contracting business grows we would like to implement the same savings plan from his income when we are able to. We'll see. We are on the conservative side when it comes to investing as well. I do like the idea of real estate flipping....
Real estate flipping isn't conservative. While long term real estate is always a good investment, short -term flipping is dicey right now. The pros in that game have gotten in, made their money and gotten out. They are just waiting on the sidelines for things to get really bad, the novices to loose their shirts and start the whole game again!
Remember what goes up, must come down, but it eventually goes back up again. If you are in it short term (flipping) the trick is not geting caught and stuck when it is 'down time.'
If you are a conservative I would really suggest you look into index funds. No fees and you get the benefit of the whole market.
In addition, I would like to suggest that EVERYONE get a copy of "The Automatic Millionaire" or "Smart Couple Finish Rich" or "Smart Women Finish Rich" all by David Bach. It is a good starting point.
True never totally follow any one 'guru', but be flexible and use them as a starting point.
Real estate flipping isn't conservative. While long term real estate is always a good investment, short -term flipping is dicey right now. The pros in that game have gotten in, made their money and gotten out. They are just waiting on the sidelines for things to get really bad the novices to loose their shirts and start the whole game again!
Yep ... I'm not even going to think about real estate until the market crashes and crashes big. It's coming ... just a question of time. You usually have to wait a couple of years to figure out where the bottom is also ... not much fun to pay what you think is a cheap price just to have prices drop even further.
I do wish I had bought some lots in my neighborhood though. Man ... they were cheap and tripled in value in just a couple of years. But some of them weren't buildable and I just didn't have the time to research it so I'd know what I was doing. I didn't want to risk buying a non-buildable lot ... too much going on at the time but ... whoah ... what a profit I would have made.
Neil Boortz argues that with a flat 'sales tax', there would be tremendous pressure to save money (you aren't 'taxed' on it till you spend it).
Timothy,
Boortz overwhelmingly pushes for a FAIR tax! Stay away from the word "flat" for some reason people are terrified of "flat"...it may have something to do with a fear of being stuck in Kansas 30 miles from anything, lol (Just kidding people, I love Kansas!!)
Real estate flipping isn't conservative. While long term real estate is always a good investment, short -term flipping is dicey right now. The pros in that game have gotten in, made their money and gotten out. They are just waiting on the sidelines for things to get really bad, the novices to loose their shirts and start the whole game again!
Remember what goes up, must come down, but it eventually goes back up again. If you are in it short term (flipping) the trick is not geting caught and stuck when it is 'down time.'
If you are a conservative I would really suggest you look into index funds. No fees and you get the benefit of the whole market.
true in most areas, but the trick is to buy in an area that is up and coming and not yet horrifically overpriced. Personally as we are in the construction biz, we kind of have an inside track on a lot of areas regarding real estate. Property management is lucrative as well... if you have a property that attracts the right market. In any case we would certainly do our homework before making that move.
true in most areas, but the trick is to buy in an area that is up and coming and not yet horrifically overpriced. Personally as we are in the construction biz, we kind of have an inside track on a lot of areas regarding real estate. Property management is lucrative as well... if you have a property that attracts the right market. In any case we would certainly do our homework before making that move.
If you have the inside track like you do, yes, buying in an "up and coming area" is the way to go. The problem is every Tom, Dick and Harriet thinks they know what area is 'up and coming'. You would not believe the clients I've had to talk out of buying and putting themselves WAY OUT for overpriced property JUST because they thought they had the inside track.
Since you and your DH are in constructuion what you are doing is technically not "flipping". You guys are building homes for people. No matter WHAT happens in the market, folks will always need reasonably priced homes. Good for you! That is were the smart real estate money is!
If you guys ever get into developing your own housing developments or small communities, you will surely make good money.
Try to get the husband to consider retirement communities for active seniors. Seniors love small luxury homes, clubhouses with tennis courts, swimming pools, gyms and dining facilities. If you retirement community also includes an upscale retirement home for when they can no longer live alone, lots of seniors will snap it up as "one stop retirement living shopping" That's the real estate investment I am into at the moment. I stopped flipping 18months ago.
If you are in it short term (flipping) the trick is not geting caught and stuck when it is 'down time.'
Sheri257
3,905 Posts
I have some debt from school also but, it's only costing me 4 percent. So, instead of paying it off early, I'm putting more money into my tax deferred retirement account. Why? Because once I start working 35 percent of my money is going to go to taxes. If I put that tax money into the retirement account, I can make up to anywhere from 4-8 percent on that tax money for the next 20 years.
So, that's investment earnings I normally wouldn't have on 35 percent of my income if I pay the taxes and then pay down the debt at 4 percent. And, if I only earn 4 percent on the non-tax savings, at worst I break even with the 4 percent debt. But if I make 8 percent on that savings then I still come out ahead by 4 percent even with the cost of the debt.
:typing