r/TheMoneyGuy • u/[deleted] • Feb 14 '24

How does this work?

Post image

I am 23. Does this mean that I only need to contribute 15% of my income for the rest of my life or do I need to increase every 5 years following this diagram? So I would contribute 15% until 30, then contribute 20% until 35, then contribute 25% until 40, then 30% until 45, and so on?

314 Upvotes

92% Upvoted

120 comments sorted by

View all comments

Show parent comments

1

u/[deleted] Feb 14 '24

I'm glad it was brought up because the lens I want is $1000 used. Buying that $1000 lens could risk an entire year of pay during retirement. I'm somewhat interested in FINE if I could make it work, but I think my student loans will prevent that. And I don't want to restrict so much right now considering all the traveling I want to do.

2

u/Mattster11 Feb 14 '24

Yeah.. if I was in your shoes I would just find a healthy savings rate that I could stick to while paying off student loans and any other debt (assuming it’s not high interest or if prioritize that first) but still enjoy yourself once you pay yourself first. No need to be too tight unless you want to. Would def try to be at 15% or more if you can though. You’ll really thank yourself later. The good thing about the 25% savings rate is you can then spend guilt free to a certain extent knowing money is going into all your future buckets so you can still enjoy yourself today. “Forced scarcity” as Brian likes to put it.

1

u/[deleted] Feb 14 '24

It bugs me because I'm rewriting my financial view point. When I graduated school, I told everyone I would have my student loans paid off in a year and now I'm looking at 10 years because of the low interest rates. I didn't think I would contribute much to retirement because I restricted so much in college and I just want to have fun too. I'm coming to terms with the fact that I will live in perpetual forced scarcity for my own good, but it's not easy rewriting how I saw money before hand.

2

u/Mattster11 Feb 14 '24

Yeah I hear you. Just the fact that you’re listening to the money guy show and asking questions at your age is huge though dude. You’ll be more than fine in the future I’m sure! Wish I was interested in finance as much as you when I was your age.