Re: 20-something + Retirement = What?
Quote:
Originally posted by flipstah
Dear Beyond,
I'm a young 20-something with a starting career and decent pay. I have enough income to start saving up and possibly live out my dream of:
- Seeing the world as much as I can
- Having a house and two cars
...Possibly in the next 3-5 years for both dreams to come true.
With that, I calculated that I can afford a house with my current salary and have some money left over for expenses, retirement, etc.
Right now, I'm putting little retirement money (<$300 altogether/month) in my own TFSA, Mutual Funds RRSP and a work TFSA/RRSP. The rest is paying off my outstanding debt by the summer of this year (Kids will be kids, right?) and actual savings in my savings account.
After July, I have no obligations.
Nothing.
My dilemma is, I can either start saving for a trip this Christmas or a downpayment for a house.
As a 20-something, which should I focus on more: thinking about retirement or going on trips and shit?
I can try and do both but it's usually one trumping the other.
I live with my parents because I'm on field duty most of the time so no point in buying a house or renting an empty place right now.
Beyond ballers, please help.
Sincerely,
- Fork in a Road
Hate to be a downer but here's some advice:
Your plan seems reasonable for both items (house and travel). However, you are forgetting one major factor that may affect you in the next 5 years - a life partner (how's that for PC).
I was on the same track as you - bought a townhouse, had a sports car, started to travel...and then BAM.. got tricked into marrying a girl. We are not looking for a flashy wedding but total costs of wedding + engagement ring (assuming no family help) can be close to $50K.
I took a pill, sold the M3 to free up the capital for the wedding (bought the bike as a consolation prize), and now happy wife (to be) = happy life.
Sorry with all that boring sh%t I forgot the advice: plan for the unexpected - With extra $ save 40% for house, 40% for travel, and 20% for unexpected. Also, most advice I got was make sure your retirement savings is in full gear by 25 so if you are below that you might have some extra room.
Good luck man!
Re: Re: 20-something + Retirement = What?
Quote:
Originally posted by SkiBum5.0
Hate to be a downer but here's some advice:
Your plan seems reasonable for both items (house and travel). However, you are forgetting one major factor that may affect you in the next 5 years - a life partner (how's that for PC).
I was on the same track as you - bought a townhouse, had a sports car, started to travel...and then BAM.. got tricked into marrying a girl. We are not looking for a flashy wedding but total costs of wedding + engagement ring (assuming no family help) can be close to $50K.
I took a pill, sold the M3 to free up the capital for the wedding (bought the bike as a consolation prize), and now happy wife (to be) = happy life.
Sorry with all that boring sh%t I forgot the advice: plan for the unexpected - With extra $ save 40% for house, 40% for travel, and 20% for unexpected. Also, most advice I got was make sure your retirement savings is in full gear by 25 so if you are below that you might have some extra room.
Good luck man!
Thanks for that perspective! I am looking for a gal to enjoy life with and with her working too (she better be lol), I think that goal will be closer to reach.
For now, I just have to pinch as much as I can while not compromising my responsibilities as the eldest sibling in an Asian family and not sacrificing my wants.
Aiya...
But I leave soon for Asia tripping! WEEE!