Anxiety Spending Money

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cjwarri0r
Posts: 17
Joined: Mon Oct 23, 2017 2:30 pm

Re: Anxiety Spending Money

Post by cjwarri0r » Wed Jul 11, 2018 8:10 am

Momus wrote:
Tue Jul 10, 2018 10:50 pm
I would try to do whatever you can to get a better paying job. Finance is a great degree, try to get promoted or jump from company to company taking extra responsibilities. The feeling that you can't spend money is because you just don't make enough, so every little purchase becomes a mental tug of war of saving and spending. You need at least 75k/yr to feel you bring enough money to be happier, it's actually probably more than that since you live close to NYC. 45k/yr is really tough to live on and accomplish a high savings rate. Rent, student loan, savings for retirement gonna eat a ton of chunk of that, so I feel you there...

TBH, I eat once a day only, and I eat whatever I want at dinner time. I don't eating breakfast and lunch (waste of time, making you mentally clouded if you down a bunch of carbs).
You're completely right. I just dont make enough so its a big mental battle. I've been actively searching for other opportunities but nothing solid has really hit yet. This is why I've been trying to supplement my income with extra side activities on my spare time...low effort stuff. I've even considered getting a second job temporarily but I think thats just me being extreme.

Within two years I'm hoping to be above the 75k level tbh. Not sure how you survive by not eating until dinner EVERYDAY. I already dont eat breakfast as it is....so the days I skip lunch, my stomach is practically begging me for snacks at the very least

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ruralavalon
Posts: 13699
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Anxiety Spending Money

Post by ruralavalon » Wed Jul 11, 2018 8:16 am

Don't skip meals to save money. Pack a lunch or eat cheap.

cjwarri0r wrote:
Tue Jul 10, 2018 10:13 pm
ruralavalon wrote:
Fri Jul 06, 2018 2:40 pm
cjwarri0r wrote:
Fri Jul 06, 2018 10:51 am
I'd have to get back to you on the types of funds later on today when I have time to properly look. Thank you for the input. Paying off the debt is my top priority at the moment. Any suggestions for particular growth funds by the way? [emphasis added]

Im working on the "fun money" part. Its a little difficult
For the IRA initially I suggest Vanguard LifeStrategy Growth Fund (VASGX) ER 0.14%.
Thank you for the suggestion. I'll check it out. Any particular reason why you suggest this specifically?
You are 23 and just starting investing.

In selecting funds I suggest striving for a combination of broad diversification (to decrease risk) and low expense ratio (to increase your net return).

Vanguard LifeStrategy Growth Fund (VASGX) has a low expense ratio, and is a balanced fund with very broad diversification. It covers both U.S. and international stocks and bonds in a single fund.

It holds 80% stocks and 20% bonds, an asset allocation which is fairly aggressive and suitable at age 23 in my opinion.

Vanguard LifeStrategy Growth Fund (VASGX) is a easy, simple way start your IRA. Using a single all-n-one fund let's you concentrate your attention on other things, like your work.

I suggest opening a traditional deductible IRA at Vanguard, taking $5,500 from your savings and contributing that to your IRA, and investing in that fund as a way to start.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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ruralavalon
Posts: 13699
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Anxiety Spending Money

Post by ruralavalon » Wed Jul 11, 2018 9:10 am

Prioritizing investments.
Your question is basically one of priorities, including what to allot for enjoying life. Your $2,600 per mouth should probably be enough to cover all your priorities including some fun money.

Here is a general account funding priority that usually works well for many people (when there is no HSA use):
1) Contribute to the work-based plans (401k, 403b, 457, TSP, etc.) enough to get the full employer match (the match is like free money, your best possible investment);
2) pay off high interest debt (a guaranteed high return, the next best thing to free money);
3) Contribute the maximum to an IRA, traditional or Roth (or backdoor Roth technique), depending on eligibility and personal circumstances (If the company plan offers good, low-cost funds, it may be preferable to contribute to the company plan before contributing to an IRA.);
4) Contribute the remainder of the maximum employee contribution to the work-based accounts; and
5) Contribute to a taxable investing account.

Please see the wiki article "Prioritizing investments". "If the company plan offers good, low-cost funds, it may be preferable to contribute to the company plan before contributing to an IRA. "



Additional information???
Some additional information would probably be useful in thinking through your priority question.

Contributing to your 401k, even without an employer match, would be a priority for your investing plans. It's important to make use of tax-advantaged accounts, if the funds offered are at all decent.

Could you please list the funds offered in the 401k, giving fund names, tickers and expense ratios? Please see this for format: "Asking Portfolio Questions".

What do you believe would be a reasonable amount to pay your parents per month for room and board while you still live at home?

In your locality about how much would a moderately priced evening out with your girlfriend cost, say dinner at a moderately priced restaurant and a movie?

If you buy lunch on a workday, about how much might that cost per day?

You have $5,000 in stocks. What firm is that account with, what are those stocks, and what is the capital gain/loss status of each of those stocks?

Do you have any short-term or intermediate-term financial goals in addition to paying off the student debt and starting your investing?

You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.



Summary of information provided so far.
Your salary is $45,000 per year.

You are paid $3,300 per month (about $39,600/yr), spend $700 per month, and have $2,600 a month ($31,200/yr) available for saving, investing, paying off debt, room and board to your parents, and fun.

The student debt of $30,000 is at about 5% interest.

There is no employer match offered in your 401k.

You have $20,000 savings (I have suggested contributing $5,500 of that to an IRA at Vanguard to start investing).

You also have $5,000 in stocks.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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