whoisjohngalt
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Post by whoisjohngalt on May 4, 2011 16:26:19 GMT -5
And as far as posting budgets - well, why would I??? We make decent money, much less after I stopped working, but still decent by most standards. So, what is there for me to post?? What would be the point??
From time to time people want to compare certain things like % of some expenses to income and most people are very open with their info. But do you REALLY care about other people's budgets just for kicks and giggles???
Lena
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thyme4change
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Post by thyme4change on May 4, 2011 17:03:18 GMT -5
I'm kind of with Lena. I don't really know the value of posting my budget. Everyone could find fat in my budget and tell me how to cut it back - but I don't need to. I already save a lot, and I spend a lot, too. I don't need everyone here to point out to me how much I spend on useless stuff. I have the money, I've fulfilled all my other goals, so I spend what I want (within reason.) My lesson is the same as yours - buy a house that is much, much less than the bank says they will give you, drive a paid off car and make a great salary. Everything else is chump change.
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Mrs. Dinero
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Post by Mrs. Dinero on May 4, 2011 17:06:07 GMT -5
Ok you ladies are missing the point. It not about cutting the fat as much as it is where is it going? Retirement? Savings? Donations? How much is too much? If you have more income than expenses where do you put the rest?
I have plenty of fat to cut. Add more to retirement? Buy more house, add another car, or donate more?
What do you do? Inquiring minds want to know.
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thyme4change
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Post by thyme4change on May 4, 2011 17:14:49 GMT -5
Mostly I throw it into a brokerage account, then when something big comes along I decide if I want to buy it by taking the money out of the market.
Our tax advantaged retirement options are maxed out - so I can't put anything else into one of those. Technically, I expect my brokerage to be there for me when retirement comes, but I don't consider it my retirement funds. I can take it out whenever I want, for whatever I want.
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whoisjohngalt
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Post by whoisjohngalt on May 4, 2011 17:15:07 GMT -5
Wait, you want to know where our monies are going?? Or do you want to know where YOUR monies should be going?
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Mrs. Dinero
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Post by Mrs. Dinero on May 4, 2011 17:16:32 GMT -5
Lena - do you have any money?
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Mrs. Dinero
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Post by Mrs. Dinero on May 4, 2011 17:17:09 GMT -5
Thank you thyme.
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whoisjohngalt
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Post by whoisjohngalt on May 4, 2011 17:21:29 GMT -5
Not as much as I want to.
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CPWnyc
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Post by CPWnyc on May 4, 2011 17:24:19 GMT -5
dancinmama "Here's the problem as I see it in a nutshell. Many people are jealous. They don't want to accept the fact that someone may have done something other than "get lucky" to get to where they are at. They just assume that the ONLY reason the person is posting is to pat themselves on the back or to brag instead of wanting to actually help someone else."
my thoughts exactly.
"I started posting on the MSN YM threads hoping to pass something on to YOUNG PEOPLE just as people had passed information on to us, so that MAYBE they could avoid the obstacles that make achieving financial success more difficult. I did not usually start threads of my own, but posted our experiences when it was relevant to a thread that someone else had started. Sometimes what I posted was very well received. Other times I was met with "snarky" and rude comments - similar to what Mrs. Dinero was met with here."
Some of former YMers do not want to see other people sucessess. This is a classic example of what Ayn Rand called "Hatred of the good for being good". Most people, I should say...self-assured people would react to our fellow YMers like Dancinmama or Mrs Dinero's success ( from no money to have some/a lot of money) in a positive way. Some pple are even curious and ask how they achieved because they want to learn. .. emulate? Then there are other naysayers who give snarky remarks because.....perhaps they are insecured? jealous? who knows. I enjoyed your posts Mrs Dinero and Dancinmama.
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muttleynfelix
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Post by muttleynfelix on May 4, 2011 19:16:23 GMT -5
Budget Income Mary's Check $4,616.00 Total Monthly Income $4,616.00 Expenses Taxes Mary's taxes $742.62 Total Taxes $742.62 16.09% Pretax Expenses Health Ins $209.36 Flex Spending $79.30 Total Pretax Expenses $288.66 MORTAGAGE PITI $1,150.00 24.91% Autos Car Payment $235.73 5.11% Gas + Maint. $350.00 Insurance $85.00 Total $670.73 14.53% Electric $120.00 2.60% Propane $60.00 Phone Cell Phones $85.00 House Phone $45.00 Internet $40.00 Total $170.00 3.68% TV $85.00 1.84% Life Insurance me $44.91 DHl $75.21 Total $120.12 2.60% Groceries/Household $550.00 11.92% Healthcare Prescriptions $50.00 Payments $- Other $50.00 Total $100.00 2.17% Pet Care $40.00 Church $300.00 6.50% Fun $80.00 1.73% Living Expenses $4,477.13 96.99% Retirement 80.00 1.73% Short Term Savings $40.00 0.87% Total $4,597.13 99.59%
There you have it. Not a lot of space, but as I found out earlier this year there is actually more than I think there is. I was unemployed 2 days a week for a month and we were able to reduce expenses enough not to dip into savings. The budget is based on 2 paychecks a month so twice a year I get an "exta paycheck" which pays for extras. DH earns a couple grand a year in consulting income which pays for extras. We have ~$50k in retirement savings; $18k in other savings which is being rebuilt after having a baby last year (unpaid maternity leave).
DH is a 46 yo SAHD. I'm a 29 yo civil engineer. I have a 401k that is being converted to a SIMPLE IRA. Boss splits the profits of the year between our retirements and bonuses.
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dancinmama
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Post by dancinmama on May 4, 2011 19:34:11 GMT -5
There you have it. Not a lot of space, but as I found out earlier this year there is actually more than I think there is. I was unemployed 2 days a week for a month and we were able to reduce expenses enough not to dip into savings. The budget is based on 2 paychecks a month so twice a year I get an "exta paycheck" which pays for extras. DH earns a couple grand a year in consulting income which pays for extras. We have ~$50k in retirement savings; $18k in other savings which is being rebuilt after having a baby last year (unpaid maternity leave). DH is a 46 yo SAHD. I'm a 29 yo civil engineer. I have a 401k that is being converted to a SIMPLE IRA. Boss splits the profits of the year between our retirements and bonuses. muttleynfelix: You might not have a lot of wiggle room in your monthly budget, but you don't have any credit card debt and you have better than average (I think) EF.
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dancinmama
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Post by dancinmama on May 4, 2011 19:49:00 GMT -5
This response is the same issue that usually prevents me from posting my information. This forum is great if someone is struggling and asking for advice but if you are posting from a comfortable place to say how you are doing it, you get a lot of angry responses. On the old MSN YM board, that is pretty much the way I saw it. DH and I are 54 and are quite comfortable now, but we started out with nothing as most couples do. I worked for (6) years and during that time we lived off of one income and saved the other. DH contributed the max allowed to his 401k from the get go. I took the pregnancy route to "retirement" cutting our income by 50% and we have been a single income family ever since (I was 29). We never took on credit card debt or car loans and lived well below our means. DH earned the money and I ran the household like it was a business.
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Post by illinicheme on May 4, 2011 20:11:32 GMT -5
I come here to learn. I'm certainly not talking about this around the water cooler or at parties. Geeez. I would love to hear from Windy, Miller, exLondonPat, illsomething CA. Anyone who I could grow from. I would never put them down for being better off or not going through hard times. Sometimes I just don't get this group. Holy crap - did I just get called out as someone who might be able to help someone else?!? Most of the time I feel pretty invisible on this board. ;D I don't usually get too involved in the budgeting discussions, because my income level is high enough that I don't sweat the small stuff. That isn't to say that there haven't been lean times, but even when I was making only $23k as a grad student (and paying rent in the Bay Area), I've never been close to an edge. Some of that is hard work, but a lot of it is luck. I freely and readily admit that I have the most financially phenomenal parents in the world. (ETA: Meaning they both taught me enough to make sure I never ended up with credit card debt, and I also have always known that they're very secure and can back me up if the crap ever really hits the fan. So it's impossible for me to put myself in some poster's shoes, so usually I just keep my mouth shut.) I understand your frustration to some extent. I've tried to ask questions a couple of times regarding taxable investing and 403b vs 457* and some other things that I'm not fully comfortable with yet, but those threads don't seem to draw much in response. Maybe it's just human nature to take a peak and be like "meh - they're doing fine" and move on to the trainwreck threads instead. ;D * In the case of that thread, I'm still trying to get the plan options out of DH, so I'll probably resurrect that at some point, hopefully soon.
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muttleynfelix
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Post by muttleynfelix on May 4, 2011 20:12:31 GMT -5
Thanks dancin. I do appreciate your opinion. I was actually working on our budget this past weekend because I had suspended retirement contributions for 2 years. But at book club last week we talked about how you don't have to do everything, just the next thing. So, $10 a week to each Roth IRA it is (and on a personal note I stopped drinking soda). Plus we get to have a garden this year!! ;D I can't wait until we can get cows and chickens, but one step at a time.
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Poppet
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Post by Poppet on May 4, 2011 20:14:46 GMT -5
Gimme a break with the 7K+ per month take home. You poor "struggling" thing to live under one's means.
This sums it up:
"I've tried and tried and just can not get impressed by someone who "doesn't spend every penny" when there are lots and lots and lots of those pennies to spend."
And to temper my own snarkiness, I realize the op has demonstrated that she has financial common sense--a rarity in a country filled to the gills with financial i-dots.
Grumble, grumble. Off to deal with a much smaller take home pay.
What? Me jealous? Sure.
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dancinmama
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Post by dancinmama on May 4, 2011 20:19:22 GMT -5
Thanks dancin. I do appreciate your opinion. I was actually working on our budget this past weekend because I had suspended retirement contributions for 2 years. But at book club last week we talked about how you don't have to do everything, just the next thing. So, $10 a week to each Roth IRA it is (and on a personal note I stopped drinking soda). Plus we get to have a garden this year!! ;D I can't wait until we can get cows and chickens, but one step at a time. Cows and Chickens!!?? We've got (3) measly tomato plants and (4) cucumber plants in the ground. ha ha ha
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Post by illinicheme on May 4, 2011 20:21:27 GMT -5
Ok you ladies are missing the point. It not about cutting the fat as much as it is where is it going? Retirement? Savings? Donations? How much is too much? If you have more income than expenses where do you put the rest? I have plenty of fat to cut. Add more to retirement? Buy more house, add another car, or donate more? What do you do? Inquiring minds want to know. We're in the midst of this kind of process right now. We bought a house roughly six months ago and have ridden out the waves of that to find out that we've got quite a bit more cash lying around than we anticipated (royally biffing the tax withholding to result in a giant refund is partially to blame). We also can no longer contribute directly to Roth IRAs, so need to decide what to do with the money that had been going there. Priorities we're wrestling with: - What to do with former Roth contribution? Additional pre-tax investing for DH? "backdoor" Roths? Something else entirely? - Need to resume charitable contributions. How much? - We're TTC. How much to set aside in savings? - Where to dip our toe in regarding taxable investing? Especially considering that DH is extremely conservative and risk averse? Right now we're feeling kind of overwhelmed and paralyzed, so the cash continues to sit idle. Need to make some decisions and get some things going. So far we've picked two local charitable organizations we want to support and I'm setting up payroll deductions this week.
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muttleynfelix
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Post by muttleynfelix on May 4, 2011 20:23:39 GMT -5
We have 10 acres. My neighbor currently hays what is hayable but our master plan has always been to able to live off our land to small extent. It has just taken us longer to get to that point than we thought. DS is quite the outdoors boy (ok he is 15 months) and I love the idea of him having chores and animals to take care of. I'm just dreading the day when he wanders into the hay that is over his head.
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dancinmama
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Post by dancinmama on May 4, 2011 20:31:11 GMT -5
We have 10 acres. My neighbor currently hays what is hayable but our master plan has always been to able to live off our land to small extent. It has just taken us longer to get to that point than we thought. DS is quite the outdoors boy (ok he is 15 months) and I love the idea of him having chores and animals to take care of. I'm just dreading the day when he wanders into the hay that is over his head. Wow, I think that's awesome. After DH retires we're going to do a raised bed garden, but that's about as good as it's gonna get. We have 1/3 acre and it is all landscaped. We're going to have to tear something up to have a bigger garden.
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maraqxa
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Post by maraqxa on May 4, 2011 21:01:15 GMT -5
It's interesting to see how different people are impressed by different things. I've tried and tried and just can not get impressed by someone who "doesn't spend every penny" when there are lots and lots and lots of those pennies to spend. I get impressed by people who do something "extra". Having your college paid for, living in a LCOL area where housing is cheaper, and not joining country clubs, etc is not "extra" in my opinion. We've had sooo many posters over the years who went through hard times, did hard, but necessary things to get where they got. Now, THAT was impressive. I don't know, may be I am not explaining this well, but there was just something so tacky about this post...... Lena And I wasn't going to say anything but people keep talking about jealousy. That's just ludicrous. May be if it was a different group, I could see it, but for YM??? What's there to be jealous about?? Agreed. There was something tacky about this post, it just came off wrong, even I took it wrong! OP - No jealousy here either. I would have to say that my income is like yours and we save 50% of it even after my 15% 401K contribution, it is much easier to do it with an income like that.
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Post by gsbrq on May 4, 2011 21:12:04 GMT -5
I budget on a per-paycheck basis. Here's how each check is broken out:
1560 Net (after fsa, vision, 401k & taxes)
675 Joint bill-pay account (mortgage, student loan, utilities,household items/repairs, and household emergency fund) 190 Roth 175 Car Expense (note, gas, registration, repair, etc) 150 long-term savings 40 Vacation fund 40 Vet care fund (I have 2 elderly cats, and at some point I expect to rack up some serious bills) 30 Gifts 15 Books
$245 cash allowance--all groceries, personal care, clothes, pet food, shoes, entertainment, meals out...all those things must come out of this cash allowance.
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createmyown
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Post by createmyown on May 4, 2011 21:12:44 GMT -5
Hey Mrs D, I didn't find your post tacky or braggy. I'm pretty surprised at how many people took it badly since that never even crossed my mind. But of course, people perceive the same thing differently.
I've always liked your posts so maybe I'm biased but I personally find it inspiring to hear successful stories (ie. not rags to riches, but people who follow conventional advice and "the rules" -- I'm in accounting; it helps to have this mindset!!)
I actually find it pretty depressing to read about Doxie on the other thread ... even if she makes it out ok, it just sickens me to read about all the "mistakes" piling up on one another. I know I'm in the minority for this one, but still, surely other folks can understand that people are inspired by different things?
I'm 26 and would love for you to expand on the advice you mentioned you got in your early years. Thanks a lot and please don't give up on this board! People like me need you!
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Post by gsbrq on May 4, 2011 21:27:11 GMT -5
Even when I was at my most profligate, I was always the kind of person who needed a "cushion" of at least one month's expenses squirreled away in order to feel safe. When I got my first office job that came with a 401k, I was making less than 30k/yr, but I was able to contribute 20% because I kept my housing & transportation costs extremely low. As I got raises, I funnelled them into other savings vehicles...Roth, regular savings, house downpayment acct, etc.
The key is developing the habit of living well below your means early. I do recognize this is easier for single folks than for parents, but keep in mind that I help support my parents financially, so I do have additional expenses...I just do my best to plan for them.
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dancinmama
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Post by dancinmama on May 4, 2011 21:35:14 GMT -5
Even when I was at my most profligate, I was always the kind of person who needed a "cushion" of at least one month's expenses squirreled away in order to feel safe. When I got my first office job that came with a 401k, I was making less than 30k/yr, but I was able to contribute 20% because I kept my housing & transportation costs extremely low. As I got raises, I funnelled them into other savings vehicles...Roth, regular savings, house downpayment acct, etc. The key is developing the habit of living well below your means early. I do recognize this is easier for single folks than for parents, but keep in mind that I help support my parents financially, so I do have additional expenses...I just do my best to plan for them. gsbrg: That's why it is SOOOO important to get a hold of young people when they are first starting out BEFORE they make decisions that might derail them for a long time to come.
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Mrs. Dinero
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100% about truth & justice. Always trying to give mercy a chance.
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Post by Mrs. Dinero on May 4, 2011 21:39:23 GMT -5
I thought I would check the post one last time tonight. Wow! It's funny how we can all feel something different. I love it. We need all different kinds of people in this world. The Lenas to the tackiest/braggarts make this world so great. I obviously did not do a good job communicating my point. Truth is, I'm so intrigued by people and their money. I have to admit I was getting burned out on reading all the threads about spending more than you earn so I thought I would post what we do and get some responses on how we can do better ourselves. Thanks for all the responses. I love to read them all. (DH just told me to write a disclosure "I've had a couple gin & tonics") nighty night
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Post by gsbrq on May 4, 2011 21:43:29 GMT -5
Cars seem to be the downfall for many. I am fortunate that I avoided that particular trap. I always paid cash for my cars...my folks let me know from my early teens that financing would not be an option, nor would they buy a car for me. So I got in the mindset of saving money, and only buying what I could afford. This was a big help to me throughout my life. I never had a new car or a car note until 2 years ago when I decided to treat myself to a luxurious brand new Corolla Signing the loan nearly gave me heart failure, but I got a great deal on it, and plan to drive it into the ground just as I have all my cars.
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suziq38
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Post by suziq38 on May 4, 2011 21:45:10 GMT -5
Of course, I am Suzi Q, so I think that paying $800.00 for just groceries/toiletries/household goods and $600.00 a month for restaurants is somewhat HIGH.
Cut the restaurants to once a week. For a moderate restaurant that would be about $70.00 each time X 4 weeks= $280.00 - $300.00 a month. Groceries $800.00 a month for 4?? We spend $200.00 a month for 2 adults. We eat at home 5-6 nights a week.
If we do go out to eat, we go to moderately and inexpensive places and split a large meal. I will not order sodas, only water. DH still insists on a soda, LOL. I like to go to places that you can sit down, but not have to tip a waitress. You just go to the window and pick up your food.
Try to spend only $700.00 this month, then work it down by $50.00 the next month. You could probably spend only $600.00 a month and save the extra money for the kid's college fund.
$300.00 saved from the restaurants and $200.00 saved in groceries = $500.00 to put into their college fund or your EF.
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Deleted
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Post by Deleted on May 5, 2011 8:18:36 GMT -5
I'll play. Here's the simplified version of my budget for our family of four (with lots of critters). There are really a lot more categories, (like gifts, vacation, etc.) but we don't fund them all every month, just when there is extra income from things like OT or bonuses. For example, my older son's entire summer care (camp's etc) and our Christmas account was funded with our tax return. DH just started working a temp job a few weeks ago, he was unemployed since last August and now makes LESS than he did on unemployment, but we're expecting that to change if they hire him on at the end of the temp contract in June. My income 1465 DH income 1642 Child Support 1000 Flex Plan 515 Income 4622 Mortgage 1054 Prop. Tax 200 Insurance 90 Maintenance 50 Electric 120 LP 80 Childcare 500 Fun Money 200 Groceries 300 Eating out 75 Toiletries 50 Medical 100 Animals 120 Life Ins. 30 Auto Ins. 90 Gas 250 Cell Phones 70 Direct TV 80 SavingsEmergency 300 College 200 Car Repl. 250 Roth 400 Expenses 4609 We're still looking for ways to cut back. Direct TV is going this August and older son is going to start taking the bus home this fall saving us $100/month in after school care, but we'll have to get him a cell phone as we have no land line. Gas is getting hard to stay under $250, but we like to take uneccesary day trips to visit family within 100 miles or so a lot, and could cut that back if we had to.
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Deleted
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Post by Deleted on May 5, 2011 8:21:54 GMT -5
OP, I would love to be like you guys when I reach 35-37 Keep expenses low and not let other expenses creep up.
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Mrs. Dinero
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Post by Mrs. Dinero on May 5, 2011 8:36:39 GMT -5
Cawiau - I have a feeling you'll be better off than us. You seem very money savvy to me at an early age.
I knew we didn't want to increase our 401 contributions past the match because of tying them up so I like the idea of putting the extra money into a brokerage account and then tapping into it when we need it for a big purchases. We can only pull out the contributions without being taxed right? I obviously need to read up on it all. Stick with mutual funds or buy stocks and/or bonds? I like the idea of buying stocks because of our age and we're already plenty of diversified in our retirement accounts. I could consider this more like fun money (instead of allowing the creep of food/entertainment). My wheels are turning.
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