M$D: October 19, 2040
Meet Barry
Age: 35
Barry’s main concerns, in his own words:
I’m 35 years old, single, and living in Atlanta. I make just under $70,000/year, put 13% into a company sponsored 401K (7% match on first 6%). The 13% increases annually by 1%. Another $100 per paycheck (biweekly) is put into savings, but it’s kind of liquid. I need to start putting it into a different, less easy to access account. It’s way too tempting to be able to open my banking app and transfer a few hundred if I need/want! I started seriously saving for retirement only 3 years ago. Before that I worked in much lower wage jobs working my way up, not making enough to put into a 401K, so I contributed the minimum 3%. I moved around from job to job, as is customary in my line of work, and now have four — yes, four IRAs or 401Ks sitting out there. In total, I have about $45,500 in retirement savings at this moment. I also have $10k in credit card debt mostly accrued while working those lower wage jobs, plus $10k in student loans debt. I’m trying to pay down the credit cards right now. I’m starting to freak out. I have no budget — I just pay what I need to pay each month with no thought as to where it’s going. However I break even with expenses most months. I know that shouldn’t be the case. I make 70k… As a single guy I should be shoveling money into savings, right!? I have no plans to reduce my retirement contribution amount, it will likely increase over time, or I may shift a percentage in excess of the company match (7%) to a better fund. That’s still up in the air. I want to retire a millionaire, but I feel I’m looking at Google Maps without a GPS signal. I know I’m heading down the road and retirement will be here eventually, but I have no idea how to get there!
What we cover in this episode:
- How to break out of a boredom induced financial slump
- Prepping your financial life for a move to a new, expensive city
- How to jump start your finances to overcome an underachieving past
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Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.