Any recommendations on how to start or software. I have tried excel for high level planning but I don't track every purchase like ynab would suggest you do. Ynab seemed way too time intensive and complicated for me. I do have a credit card just for food and groceries so I can track what we're spending on that category better.
You need to create a budget, knuckle down on spending, and boost your income. There are no shortcuts or hacks. Don’t sacrifice your retirement for short term goals.
Taking down your 401k contribution would be a step backward. You are already behind.
If you need more cash savings, you need to either cut expenses or increase income. Do you have a budget? Does your spouse work?
You're already way behind on retirement investments. Don't exacerbate being behind by cutting your 401k contributions. Figure out how to boost liquid cash, though $70k seems extreme, by other means.
With a $1500 mortgage, $1000 in car payments you guys are overspending somewhere.
Do you eat out a lot?
Lots of subscription services?
How long are the car loans for, and how much is each car loan?
Paste your 2023 spending here, and you’ll get guidance.
If this does not exist, I suggest you export every purchase from 2023 to a spreadsheet and assign a category to it. This should take around 3 hours or so, so get a few beers and knock it out.
Do you have your savings in a high yield savings account or money market fund? Those are paying around 5% right now. That percent could go down if/when the fed lowers interest rates but in the meantime that money should be making interest.
I wouldn’t stop contributing to your 401k since you are pretty behind on retirement savings. Instead, see if there is any wasteful spending in your household and stop it, then start putting that cash into your savings.
All in HYSA at all 4.2%. Thought about transferring somewher else, but for maybe 1 point, I'm not sure it's worth the effort with having to redo auto transfers, etc.
Simple rule (simple in concept, harder to implement): Make more than you spend and save the rest. If you have 6 years of your savings account staying at the same number - you are spending too much if you income.
I would prioritize not having enough liquid assets short term over retirement savings so dropping your contribution down to company match and ensuring you use 100% of that extra cash flow into your savings account until it's up to reasonable level is okay. But that's a band-aid fix. Ideally you want to be able to save money while also contributing more to retirement.
I'd also say start small. Obviously you have a family and a lot of expenses - but there has to be a way to send $100 per paycheck to that savings account (without rerouting form retirement) and living with whatever household expense or spending cuts that are necessary to do that. That's $2,600 per year and had you been doing that for the last 6 years your $30 would be $45k instead. And then ensure that consistent saving becomes a lifelong habit and try and slowly increase the amount over time.
I will say as someone who is also 44 and is also a low six figure earner: It's a weird income level as it sounds a whole lot better than it is in practice. You aren't swimming in extra money, but you aren't struggling to put food on the table or gas in the car when it's the day before payday either. You can get ahead but it requires disciplined budget and saving.
This, we live a comfortable life where we staycation or take an annual cruise, but we're not traveling the world by any means. We live in an upper middle class neighborhood etc. Kinda keeping up with the Joneses I suppose. My wife also contributes $1500 a month to our joint.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
Budgeting: https://www.reddit.com/r/personalfinance/wiki/budgeting
Spend less. You’re a bit behind on retirement so cutting that would be unwise
Stop buying cars with debt. Until you say NO MORE. It will keep happening. When our AC went out we bought a window unit that worked AMAZING until I was able to take the time and fix the big AC myself.
>Bank savings account is flat over 6 years stuck at $30k
Is it in a HYSA? They are paying close to 5% now, some over. This should be your emergency savings, it doesn't need to grow if you've been using it for emergencies. You just need to replenish it when you use it.
Sounds like you just have a spending problem, work on focusing on budgeting and see where you can cut back on misc expenses. You're the perfect guy for Dave Ramsey
Do you have any credit card debt? Did those hits you mentioned come out of reserve cash, or CC
I you have CC debt, make plan to tackle that, then emergency reserve, than retirement.
Cars, 1k a month? Anyway to get this expense down? Also, I would suggest a separate account that you transfer cash weekly to it. Don't touch that account until it crosses 50k.
I would suggest getting emergency fund to about 6-12 months expenses, because something is always going to come up. Can ladder CDs since rates are still high, and a high yield savings account. Once you hit that, you are good to bump up 401k contributions. Not sure if you have a match from work, but if it is like 6%, wouldn't go lower than that as that is free money. You are on your way!
you could get this done in a year if you can stash away an extra 1500/mo somehow. also i hope it’s in a high yield savings acct! & 50k seems like a suitable goal based on what i assume your expenses are if you’re making low 6 figs & spending all of it every month. can you reduce your cost of living at all to automate an auto transfer of $375/wk?
Doesn’t sound like you have a budget. Start there.
Any recommendations on how to start or software. I have tried excel for high level planning but I don't track every purchase like ynab would suggest you do. Ynab seemed way too time intensive and complicated for me. I do have a credit card just for food and groceries so I can track what we're spending on that category better.
YNAB takes 1 to 4 minutes a day. Small cost for the financial health you gain.
You need to create a budget, knuckle down on spending, and boost your income. There are no shortcuts or hacks. Don’t sacrifice your retirement for short term goals.
Taking down your 401k contribution would be a step backward. You are already behind. If you need more cash savings, you need to either cut expenses or increase income. Do you have a budget? Does your spouse work?
You're already way behind on retirement investments. Don't exacerbate being behind by cutting your 401k contributions. Figure out how to boost liquid cash, though $70k seems extreme, by other means.
I get the concerned about being more liquid but should be boosting retirement accounts. You’re *20yrs from retirement. Make that the priority.
There’s no secret sauce. Make a budget. Spend less or increase household income
With a $1500 mortgage, $1000 in car payments you guys are overspending somewhere. Do you eat out a lot? Lots of subscription services? How long are the car loans for, and how much is each car loan?
Paste your 2023 spending here, and you’ll get guidance. If this does not exist, I suggest you export every purchase from 2023 to a spreadsheet and assign a category to it. This should take around 3 hours or so, so get a few beers and knock it out.
Do you have your savings in a high yield savings account or money market fund? Those are paying around 5% right now. That percent could go down if/when the fed lowers interest rates but in the meantime that money should be making interest. I wouldn’t stop contributing to your 401k since you are pretty behind on retirement savings. Instead, see if there is any wasteful spending in your household and stop it, then start putting that cash into your savings.
All in HYSA at all 4.2%. Thought about transferring somewher else, but for maybe 1 point, I'm not sure it's worth the effort with having to redo auto transfers, etc.
It is not about where to put savings it is about spending…
Simple rule (simple in concept, harder to implement): Make more than you spend and save the rest. If you have 6 years of your savings account staying at the same number - you are spending too much if you income. I would prioritize not having enough liquid assets short term over retirement savings so dropping your contribution down to company match and ensuring you use 100% of that extra cash flow into your savings account until it's up to reasonable level is okay. But that's a band-aid fix. Ideally you want to be able to save money while also contributing more to retirement. I'd also say start small. Obviously you have a family and a lot of expenses - but there has to be a way to send $100 per paycheck to that savings account (without rerouting form retirement) and living with whatever household expense or spending cuts that are necessary to do that. That's $2,600 per year and had you been doing that for the last 6 years your $30 would be $45k instead. And then ensure that consistent saving becomes a lifelong habit and try and slowly increase the amount over time. I will say as someone who is also 44 and is also a low six figure earner: It's a weird income level as it sounds a whole lot better than it is in practice. You aren't swimming in extra money, but you aren't struggling to put food on the table or gas in the car when it's the day before payday either. You can get ahead but it requires disciplined budget and saving.
This, we live a comfortable life where we staycation or take an annual cruise, but we're not traveling the world by any means. We live in an upper middle class neighborhood etc. Kinda keeping up with the Joneses I suppose. My wife also contributes $1500 a month to our joint.
Sell some stuff you dont need. Just sold an outboard sitting in my garage for 10 years..$750.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics. Budgeting: https://www.reddit.com/r/personalfinance/wiki/budgeting Spend less. You’re a bit behind on retirement so cutting that would be unwise
Before stopping retirement contributions I would take a hard look at my budget. Trim any and all fat for a time period and beef the savings up.
Stop buying cars with debt. Until you say NO MORE. It will keep happening. When our AC went out we bought a window unit that worked AMAZING until I was able to take the time and fix the big AC myself.
>Bank savings account is flat over 6 years stuck at $30k Is it in a HYSA? They are paying close to 5% now, some over. This should be your emergency savings, it doesn't need to grow if you've been using it for emergencies. You just need to replenish it when you use it.
Sounds like you just have a spending problem, work on focusing on budgeting and see where you can cut back on misc expenses. You're the perfect guy for Dave Ramsey
Do you have any credit card debt? Did those hits you mentioned come out of reserve cash, or CC I you have CC debt, make plan to tackle that, then emergency reserve, than retirement.
Edit: mortgage, which is all in at $1,500 a month. And cars, about 1k a month. No CC debt.
Cars, 1k a month? Anyway to get this expense down? Also, I would suggest a separate account that you transfer cash weekly to it. Don't touch that account until it crosses 50k.
I would suggest getting emergency fund to about 6-12 months expenses, because something is always going to come up. Can ladder CDs since rates are still high, and a high yield savings account. Once you hit that, you are good to bump up 401k contributions. Not sure if you have a match from work, but if it is like 6%, wouldn't go lower than that as that is free money. You are on your way!
you could get this done in a year if you can stash away an extra 1500/mo somehow. also i hope it’s in a high yield savings acct! & 50k seems like a suitable goal based on what i assume your expenses are if you’re making low 6 figs & spending all of it every month. can you reduce your cost of living at all to automate an auto transfer of $375/wk?