Starting from zero..literally.

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Keepcalm
Posts: 349
Joined: Sat May 13, 2017 7:51 pm

Starting from zero..literally.

Post by Keepcalm »

I posted a while back about a friend who had some debt and had thoughts of using his IRA to wipe it out. Long story short he did, and he has zero debt, and zero retirement.

He literally has 6K to his name, and even sold his house to use the small amount of equity to pay towards the debt. Sold his Audi for a Camry. He also now rents for a fraction of what his mortgage was.

What is some encouragement or food for thought I can give him? He is pretty depressed he sold it all off. However he would have been in debt paying it off for years.

He is 32, can he still get on track starting from zero?

He is a fellow engineer, and although he is a smart guy in his field, he has clearly made some mistakes financially.

As much as you want to roast him for his actions, he is a good friend and I probably owe him my employment. I do not think I would have landed where I am if it wasn't for his reference.

What do I say to this man to solidify the fact he can start a new life just fine?
squirm
Posts: 3077
Joined: Sat Mar 19, 2011 11:53 am

Re: Starting from zero..literally.

Post by squirm »

Yup still young. I had nothing at 32.
Independent George
Posts: 1091
Joined: Wed Feb 17, 2016 12:13 pm
Location: Chicago, IL, USA

Re: Starting from zero..literally.

Post by Independent George »

1. Quite a lot of people are still deep in student debt at 32. There's nothing wrong with zero, and still plenty of time for him to build assets.
2. If he sold his assets to pay off his debts, then he was already at zero (or less) net worth before. All he did was re-organize his accounts, and...
3. Without his debts dragging him down, his monthly net income should be significantly higher than it was before. It should be very noticeably by the end of the months, and he won't be at zero for much longer.
4. With this, of course, comes the temptation to start spending again. That is something he will have to guard against, but this is a better class of problem to have.
5. As an engineer, probably the most convincing argument he can face is an excel spreadsheet showing his previous monthly net against his new monthly net.
User avatar
arcticpineapplecorp.
Posts: 7007
Joined: Tue Mar 06, 2012 9:22 pm

Re: Starting from zero..literally.

Post by arcticpineapplecorp. »

32 with no debt and no retirement is not the end of the world. If he plans to work til a normal retirement age 65 or 67 full retirement age he's still got plenty of time.

Does he have access to a 401k with matching money? If so, he should first put enough in to get the match. So if the company will match 100% of the first 5% of his pay, he's got to contribute that 5% of his pay to capture the match. He's got to do that no matter what because it's free money that should not be turned down and potentially a huge rate of return (100% match even on 5% of your pay is still a doubling of your 5% per year. Can you get 100% on your money every year guaranteed with no risk anywhere else? Nope).

Secondly, it sounds like he needs to build an emergency fund if he's only got $6000. Should have 3-6 months generally so start there. You know, in case the car dies or he has to move, loses the job and needs money to live on until the next one, etc.

Once he has that done, he can continue saving what he's been putting into short term savings for emergencies but now put back for long term savings (retirement).

Perhaps what he should do is automate his savings. How disciplined is he regarding saving? Most people get their pay and pay their bills and see if there's anything left to save. Because of the fundamental economic problem (we have unlmited wants but limited means) you can always find something to spend every dollar you earn. So you've got to save first before you spend. Buffett said "Don't save what is left after spending; spend what is left after saving." Makes sense. If you save it, you never miss it. But you'll be damn glad you did later on. Automating savings help here because it's taken out so you learn to do with out. You don't really get a chance to miss it.
Last edited by arcticpineapplecorp. on Thu Jan 31, 2019 9:40 pm, edited 1 time in total.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
User avatar
BolderBoy
Posts: 5177
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Starting from zero..literally.

Post by BolderBoy »

Keepcalm wrote: Thu Jan 31, 2019 9:17 pmHe is 32, can he still get on track starting from zero?
Yes, absolutely.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
BionicBillWalsh
Posts: 316
Joined: Sun Oct 21, 2018 1:56 am
Location: Sandwich Islands

Re: Starting from zero..literally.

Post by BionicBillWalsh »

He has 33 yrs until 65. He could become a billionaire in that timeframe.
Jerry Garcia: If I knew the way...I would take you home.
User avatar
Davinci
Posts: 202
Joined: Sun Oct 14, 2018 3:36 am

Re: Starting from zero..literally.

Post by Davinci »

What do I say to this man to solidify the fact he can start a new life just fine?
Tell him that he is doing much better than most for his age. I recently read an article that the average 30 year has ~$100k in student loans, $50k in credit card debt and essentially zero retirement.
" Simplicity is the ultimate sophistication" Leonardo Da Vinci.
samsdad
Posts: 758
Joined: Sat Jan 02, 2016 6:20 pm

Re: Starting from zero..literally.

Post by samsdad »

I think he’s set himself up great to live below his (current) means.

I had squat at 32.

Selling the house and renting for less, getting rid of the expensive-to-repair Audi for a Toyota are great moves in my opinion.

Build up a nice EF. Then save and invest as much as possible. I’d go 100% equities for awhile.

Your friend might be depressed because he’s not keeping up with the Jones’s. He’s already surpassed many.
User avatar
greg24
Posts: 3970
Joined: Tue Feb 20, 2007 10:34 am

Re: Starting from zero..literally.

Post by greg24 »

Many have a negative net worth at 32. He has an education, a job, and has cut expenses. All the tools needed to save up a nest egg. Time to get to work.
BionicBillWalsh
Posts: 316
Joined: Sun Oct 21, 2018 1:56 am
Location: Sandwich Islands

Re: Starting from zero..literally.

Post by BionicBillWalsh »

samsdad wrote: Thu Jan 31, 2019 9:54 pm I think he’s set himself up great to live below his (current) means.

I had squat at 32.

Selling the house and renting for less, getting rid of the expensive-to-repair Audi for a Toyota are great moves in my opinion.

Build up a nice EF. Then save and invest as much as possible. I’d go 100% equities for awhile.

Your friend might be depressed because he’s not keeping up with the Jones’s. He’s already surpassed many.
The value of being unburdened is inestimable.
Jerry Garcia: If I knew the way...I would take you home.
cheezit
Posts: 377
Joined: Sat Jul 14, 2018 7:28 pm

Re: Starting from zero..literally.

Post by cheezit »

Since he's an engineer, just plug the numbers for some reasonable savings rate and asset allocation into a Monte Carlo simulator with a 30 or 35 year period. The 50th percentile numbers will be fine to finance a retirement on their own; the 10th percentile numbers added to 79% of his social security payment will still replace his current income in retirement with a conservative withdrawal rate of 3-3.5%. That ought to reassure him that he's not in such bad shape starting where he is.
User avatar
Watty
Posts: 21342
Joined: Wed Oct 10, 2007 3:55 pm

Re: Starting from zero..literally.

Post by Watty »

Keepcalm wrote: Thu Jan 31, 2019 9:17 pm What is some encouragement or food for thought I can give him?
According to this web site,

https://www.thestreet.com/personal-fina ... e-14730772
Net Worth: Under Age 35
For American households with a head of household under the age of 35, the mean net worth in 2016 was $76,200. But the median net worth was just $11,100.
With the a paid off Camry and his household goods he probably has more than the median net worth.

The average household income is about $61K and that includes a lot of two income households and he likely has a higher income than that.

https://en.wikipedia.org/wiki/Household ... ted_States
averagedude
Posts: 1314
Joined: Sun May 13, 2018 3:41 pm

Re: Starting from zero..literally.

Post by averagedude »

I think this guy will be fine. Anyone who goes to that extreme to get out of debt, will probably not find himself in debt again. I would encourage him to start investing and have it automatically come out of his future paychecks.
TN_Boy
Posts: 1987
Joined: Sat Jan 17, 2009 12:51 pm

Re: Starting from zero..literally.

Post by TN_Boy »

Davinci wrote: Thu Jan 31, 2019 9:51 pm
What do I say to this man to solidify the fact he can start a new life just fine?
Tell him that he is doing much better than most for his age. I recently read an article that the average 30 year has ~$100k in student loans, $50k in credit card debt and essentially zero retirement.
I think you should re-read that article. I don't think the average 30 year old has anywhere near 50k in CC debt (that number could be off by a factor of 10) and I'm pretty sure the *average* student loan is far less than 100k.

If you find that article and it has those numbers, please post a link. I'd like to know where the numbers come from.

To the OP, your friend is not in a great place, but if he is healthy and has a decent job, he's not in that bad a shape at 32.
User avatar
beyou
Posts: 3504
Joined: Sat Feb 27, 2010 3:57 pm
Location: Northeastern US

Re: Starting from zero..literally.

Post by beyou »

Tell him to read the story of “Col Sanders” of KFC fame.
The guy had so many failed jobs and ventures until he was in his 60s, and didn’t make his real money until his 70s. He was a colorful character, interesting to read, and inspiring in terms of never giving up ! Never too late, and your friend did not have the same hardships as the Colonel !

https://en.m.wikipedia.org/wiki/Colonel_Sanders
Erwin007
Posts: 418
Joined: Tue Aug 19, 2008 8:29 am
Location: Intermountain West

Re: Starting from zero..literally.

Post by Erwin007 »

I had a substantially negative net worth at 32. Like probably negative $350,000 net worth. He’s doing fine. Granted, I had a pretty big shovel once I graduated fellowship, but that doesn’t change the fact that I was poorer than the guy living under the bridge. He’s got plenty of time but hopefully knows he needs to make better choices going forward or he’ll repeat this cycle in another few years.
Thesaints
Posts: 3496
Joined: Tue Jun 20, 2017 12:25 am

Re: Starting from zero..literally.

Post by Thesaints »

Why did the OP's friend felt the urge of repaying all that debt now ? Rates in general are low.
Maybe the first step towards helping and advising him would be understanding if he did something foolish.
User avatar
AerialWombat
Posts: 1976
Joined: Tue May 29, 2018 1:07 pm
Location: Cash Canyon / Cashville

Re: Starting from zero..literally.

Post by AerialWombat »

At 32, I was just starting to recover from bankruptcy and homelessness. At 40, I’ve achieved “functional financial independence” and in one more year I’ll arrive at a more traditional, Boglehead-approved definition of FI.

Tell your friend that a net worth of $6,000 is far better than a net worth of negative whatever-it-was. He has plenty of runway left in life to set himself up for a comfortable retirement.
User avatar
jabberwockOG
Posts: 2362
Joined: Thu May 28, 2015 7:23 am

Re: Starting from zero..literally.

Post by jabberwockOG »

32yo with zero assets but no debt is not the end of the world. Many are in worse shape but many are in better shape.

It is certainly possible to get your finances and your head straight at 32yo and do just fine going forward.

But here is what really matters - unless your friend makes drastic changes on how they think about money, assets, debt, spending, and most importantly saving, they will almost certainly be right back in the same sad shape in a few years, and then again a few years after that, and repeat.

Changing the way you fundamentally think about income, spending, and savings is absolutely critical to producing lasting and meaningful improvement in your financial security. Without it nothing will change, except the next time there will be a fresh set of excuses as to why it all went badly again.

The important question to ask your friend is what life style and behavioral changes are they going to pursue to insure they are never in this position again?
Last edited by jabberwockOG on Thu Jan 31, 2019 11:34 pm, edited 1 time in total.
MotoTrojan
Posts: 10727
Joined: Wed Feb 01, 2017 8:39 pm

Re: Starting from zero..literally.

Post by MotoTrojan »

Buy him Intro to Bogleheads or Random Walk Down Wallstreet and tell him he’s ahead of the curve already.
Dottie57
Posts: 9542
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Starting from zero..literally.

Post by Dottie57 »

No debt is a good place to start at. 32 is not too old to restart or just start retirement. Investing.
P.s. I just read the original post. Really do think your friend needs some help in learning how todeal with debt.

I hope he can start saving AND investing as much as possible. A large savings account may help him in the future.
Last edited by Dottie57 on Thu Jan 31, 2019 11:48 pm, edited 1 time in total.
Lucien786
Posts: 26
Joined: Wed Aug 01, 2018 3:16 pm

Re: Starting from zero..literally.

Post by Lucien786 »

The fact that you feel pity for this guy kind of depresses me a little bit . . . I have less than zero, and so do many people this age, probably. OK, to be honest the percentile with negative net worth is actually pretty small. In any case, I have a high income but high student debt from graduate school. I still think I'm better off than if I had nothing, because I have an emergency fund (though it's not big enough yet) and because I've been able to take advantage of tax-advantage space, and that's still an advantage over someone who hasn't put anything in those funds (because of the annual maxes, you never get the opportunities back).

Anyway, yeah. It's funny to think that there are people out there who view people like me as sad cases. Haha.
FireHorse
Posts: 221
Joined: Sat Nov 25, 2017 7:03 pm

Re: Starting from zero..literally.

Post by FireHorse »

Only 32, what's the worry. Many of us started later than 32 and yet still be able to retire early.
The key is that your friend has learned his lesson and moving life forward.
User avatar
Sandtrap
Posts: 12345
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona
Contact:

Re: Starting from zero..literally.

Post by Sandtrap »

Davinci wrote: Thu Jan 31, 2019 9:51 pm
What do I say to this man to solidify the fact he can start a new life just fine?
Tell him that he is doing much better than most for his age. I recently read an article that the average 30 year has ~$100k in student loans, $50k in credit card debt and essentially zero retirement.
+1
And, many do not have job skills, professional degrees, or lucrative careers, as well.

I know quite a few folks that were "late starters" but amassed substantial assets and retirement by age 65.
Your friend has a lot of time as long as he:
Starts now
Stays on track
Keeps his priorities
Wiki Bogleheads Wiki: Everything You Need to Know
tarmangani
Posts: 142
Joined: Thu Dec 28, 2017 10:14 am

Re: Starting from zero..literally.

Post by tarmangani »

jabberwockOG wrote: Thu Jan 31, 2019 11:32 pm
The important question to ask your friend is what life style and behavioral changes are they going to pursue to insure they are never in this position again?
This right here. As others have indicated, he's got a firm financial position: solid income, stable job (I assume on both accounts), and no debt. But if his debt came from bad habits, and those habits are likely to recur, then there's a serious problem.
Topic Author
Keepcalm
Posts: 349
Joined: Sat May 13, 2017 7:51 pm

Re: Starting from zero..literally.

Post by Keepcalm »

I will pass the encouragement on, thanks all.
2015
Posts: 2906
Joined: Mon Feb 10, 2014 2:32 pm

Re: Starting from zero..literally.

Post by 2015 »

Lucien786 wrote: Thu Jan 31, 2019 11:46 pm The fact that you feel pity for this guy kind of depresses me a little bit . . . I have less than zero, and so do many people this age, probably. OK, to be honest the percentile with negative net worth is actually pretty small. In any case, I have a high income but high student debt from graduate school. I still think I'm better off than if I had nothing, because I have an emergency fund (though it's not big enough yet) and because I've been able to take advantage of tax-advantage space, and that's still an advantage over someone who hasn't put anything in those funds (because of the annual maxes, you never get the opportunities back).

Anyway, yeah. It's funny to think that there are people out there who view people like me as sad cases. Haha.
I don't view you or those like you as "sad cases". You simply chose to invest in your earning potential through attending graduate school, which is a very wise choice. Focusing on creating rare and uncommon value in the talent market place is a wiser choice than trying to strike it rich by becoming a "student of investing." The former choice is a much better bet, and something which you have total control over as opposed to the latter.
Traveler
Posts: 849
Joined: Fri Aug 30, 2013 9:07 pm

Re: Starting from zero..literally.

Post by Traveler »

At 32 I have about $28K in student loan debt and owed about $155K on a house that was worth about $165K. I also had maybe $20K in a 401K. Now at age 46 I plan to retire around age 54. Your friend is better off than I was at that age but he needs to address why he got into debt and how to prevent himself from doing the same thing down the road.
lostdog
Posts: 3581
Joined: Thu Feb 04, 2016 2:15 pm

Re: Starting from zero..literally.

Post by lostdog »

I started getting serious at 33.
Brokerage: VTI+VXUS || Retirement: VTWAX || Short-Term: Cash+BSV || 33x Expenses
JBTX
Posts: 7317
Joined: Wed Jul 26, 2017 12:46 pm

Re: Starting from zero..literally.

Post by JBTX »

If he can save $15K per year, every year, and increase each year for inflation, in 30 years he could have roughly $1 million at 62 years in today's dollars (5% real return), or $1.5M in future dollars assuming 2% inflation. Work another 5 more years to 67 and that becomes $1.4M in today's dollars. Obviously the more he can save the larger that number becomes.
catchinup
Posts: 164
Joined: Sun Dec 31, 2017 6:35 pm

Re: Starting from zero..literally.

Post by catchinup »

I had negative net worth until I was 42. Before then, I was appallingly irresponsible with money. I had done really stupid things like postponing paying off my student loans --allowing interest to accrue, living in credit card debt cashing out a 401k and spending the money... and one time I got a business contract that earned me $65K ... so I took a year off and spent it. UGH! :oops:

After I finally paid off all my debt, I felt so free -- but so behind on saving for retirement. (Hence my handle "catchinup")

Then I swung in the other direction and became really strict about my spending and started saving like crazy and investing.

By the time I was 57 I'd achieved a net worth of just over $1M.

I'm almost 58 now, and I've just inherited some money on top of my savings. That couldn't have been counted on, but I guess at this point, I'm pretty well caught up.

Let's hope I don't blow it by making poor investment decisions!
User avatar
catdude
Posts: 1849
Joined: Mon Jul 16, 2007 8:11 pm
Location: Central Oregon

Re: Starting from zero..literally.

Post by catdude »

When I was 32 I had next to nothing. And I really didn't get started investing till I was 40. :oops: If your friend gets with the program, he'll be fine.
catdude | | "I yield to the gentleman for a few feeble remarks." (Congressman Thaddeus Stevens)
SarahS
Posts: 153
Joined: Mon Nov 19, 2018 1:42 pm

Re: Starting from zero..literally.

Post by SarahS »

Your friend may not have a lot of money now, but he does have more of one thing that most of us here on this forum have (and wish we could have more of). That being ... time. And with that time, he can work the magic of compounding.
Call_Me_Op
Posts: 8078
Joined: Mon Sep 07, 2009 2:57 pm
Location: Milky Way

Re: Starting from zero..literally.

Post by Call_Me_Op »

Keepcalm wrote: Thu Jan 31, 2019 9:17 pm He is 32, can he still get on track starting from zero?
I know a man with 3 kids and a stay at home wife and a modest salary (engineer) who has amassed a substantial fortune (several million in net worth). His secret? He is extremely frugal. It's all about what one socks away. Your friend has 35+ years, in which time one can build a large fortune.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein
student
Posts: 5308
Joined: Fri Apr 03, 2015 6:58 am

Re: Starting from zero..literally.

Post by student »

I am in academia. Almost everyone I know starts from 0 at age between 28 and 32. Some even have student debts.
User avatar
tennisplyr
Posts: 2762
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Re: Starting from zero..literally.

Post by tennisplyr »

I had virtually nothing at 40...home with mortgage, stay at home wife with child. Now, retired @61 no debt, enjoying life. Keep working, saving and living within means. There's always hope especially for the young.
Those who move forward with a happy spirit will find that things always work out.
User avatar
Michael Patrick
Posts: 143
Joined: Wed Dec 19, 2018 10:25 am
Location: Madison, WI

Re: Starting from zero..literally.

Post by Michael Patrick »

I started from less than zero.

I joke with my wife that we didn't need a pre-nup because neither of us brought any assets to the marriage, we each brought debt. Credit card debt from me, and student loan debt from her.

I was 32 years old when we got married, and in the process of putting my life back together after years of drug and alcohol abuse. We methodically paid down the debt and have managed to sock away enough that we won't be living in a refrigerator box under an overpass in our twilight years.

Obviously, starting in your 20s is better. But at 32, your friend has time. He just needs to come up with a plan and stick with it.
UpperNwGuy
Posts: 4553
Joined: Sun Oct 08, 2017 7:16 pm

Re: Starting from zero..literally.

Post by UpperNwGuy »

My net worth was zero at age 32.
harrington
Posts: 203
Joined: Tue Jun 21, 2011 9:09 am

Re: Starting from zero..literally.

Post by harrington »

These days 32 and no debt would be considered pretty good. Don't make the same mistakes going forward and he'll be fine. I had nothing at that age. I'm now in the 7 figure club and retired at 49.
JTColton
Posts: 93
Joined: Wed Jun 20, 2018 7:41 pm

Re: Starting from zero..literally.

Post by JTColton »

Starting from zero is better than starting from behind. I didn't get serious until I was 36 about to change careers with a kid on the way. Your friend has low expenses and a decent job, he's in a perfect spot to hit the gas pedal on saving a good portion of his income. Buy him a couple of Boglehead-ish books or maybe even send him a link to this forum.
User avatar
Earl Lemongrab
Posts: 7270
Joined: Tue Jun 10, 2014 1:14 am

Re: Starting from zero..literally.

Post by Earl Lemongrab »

As I recall, the original debt was all credit card. So the question really is not about starting over from zero, it's how to prevent the original problem from happening again.
User avatar
LadyGeek
Site Admin
Posts: 68549
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Starting from zero..literally.

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (financial planning).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
mcadams089

Re: Starting from zero..literally.

Post by mcadams089 »

Davinci wrote: Thu Jan 31, 2019 9:51 pm
What do I say to this man to solidify the fact he can start a new life just fine?
Tell him that he is doing much better than most for his age. I recently read an article that the average 30 year has ~$100k in student loans, $50k in credit card debt and essentially zero retirement.
With the exception of the $50k in credit card debt, I'm in this boat right now at 29. I turn 30 this July and have a little over $100k in debt, about 90% of that student loans. I'm snowballing my debt and at my current income will be debt free and starting at zero by the time I'm 32.5. I look forward to being at zero! Because right now I'm at negative $100k..
User avatar
Raymond
Posts: 1663
Joined: Mon Apr 16, 2012 6:04 am

Re: Starting from zero..literally.

Post by Raymond »

Keepcalm wrote: Fri Feb 01, 2019 12:25 pm I will pass the encouragement on, thanks all.
And if he feels like it, he can join us all here.

Zero debt at 32, with a good job, $6,000 and a decent car is definitely better than a poke in the eye with a sharp stick.
"Ritter, Tod und Teufel"
ohai
Posts: 1327
Joined: Wed Dec 27, 2017 2:10 pm

Re: Starting from zero..literally.

Post by ohai »

mcadams089 wrote: Thu Feb 21, 2019 11:55 am
Davinci wrote: Thu Jan 31, 2019 9:51 pm
What do I say to this man to solidify the fact he can start a new life just fine?
Tell him that he is doing much better than most for his age. I recently read an article that the average 30 year has ~$100k in student loans, $50k in credit card debt and essentially zero retirement.
With the exception of the $50k in credit card debt, I'm in this boat right now at 29. I turn 30 this July and have a little over $100k in debt, about 90% of that student loans. I'm snowballing my debt and at my current income will be debt free and starting at zero by the time I'm 32.5. I look forward to being at zero! Because right now I'm at negative $100k..
What? What interest rate do you have on that $50k of credit card debt?
yogesh
Posts: 506
Joined: Thu Oct 11, 2012 6:20 pm

Re: Starting from zero..literally.

Post by yogesh »

At 30 I was in the same situation with negative net worth. Please pass on encouragement that he can't change past but can change present/future with his deeds. First win is understanding and acknowledging that something is wrong. Here is what helped me come out of this situation:
- Paid off and kept credit card out of my reach. Use it only if you pay off full balance monthly. Rewards are gimmick to suck you in debt.
- Created two accounts "checking with ATM card" and "savings" in local bank
- Tracked income, expenses using local bank budget tool (mint like)
- Reduced expense to absolutely minimum
- Change payroll to take 15% out pretax to 401K (Target date index)
- Change payroll to deposit monthly expense amount to checking
- Change payroll to auto deposit rest to savings
- Reach savings account balance to be 1yr expenses as emergency fund
- Open brokerage account and put it in VTMFX or VTWAX
He is better off with something like Acorns which combines checking/saving/brokerage into one with automation.
Emergency: FDIC | Taxable: VTMFX | Retirement: TR2040
Startingover2019
Posts: 61
Joined: Thu Oct 17, 2019 7:24 pm

Re: Starting from zero..literally.

Post by Startingover2019 »

At 41, after marrying a gold digger who spent and spent, and took me to cleaners in divorce, I am literally starting over again. NW currently is about $0.

Thankfully, no more bad decisions and have a pretty big shovel and no kids, so I think I will be OK.

Will see where I am this time next year. Plan on NW of 300k God willing.
StoopieHippo
Posts: 102
Joined: Sat Sep 15, 2018 10:42 am
Location: Seattle, WA

Re: Starting from zero..literally.

Post by StoopieHippo »

I had about -$100k at 32 and at 34, now have over $100k saved. It's definitely possible, just gotta live below your means.
Post Reply