/biz/ - Business & Finance

Not investing and saving a portion of your check. I know my roommate makes probably a similar amount that I do after I invest in my 401k and pay my private loans. They have more health expenses than I do granted but they are constantly low on money.

I don't think it is inherently wrong to not go full autist and try to hit seven figures and retire and just live your life. Tomorrow isn't guaranteed so if consooming makes you happy and you're fine with the future that could await you, so be it. But you should always have 3-12 months of expenses saved up. Probably 6 months cash, 6 months in other stable investments, then just always set aside like 10% of your check to other ventures. For most people you should be able to get a good little nest egg in a year of just "okay saving" and then go from there assuming you have a college degree. It boggles my mind to find out that my roommate is always financially struggling. I made a lot in crypto so I'm not one to talk but I am generally investing ~120/week comfortably (and another ~110/week into my 401k). I could get really hardcore and probably double that if I was so inclined. Frankly, you don't need to get too crazy beyond that. We all have vices.

So I guess the mistake is people need to make a budget and stick to it. I started using YNAB in college and honestly worth every penny to me even if I don't stick to my budget super hardcore but it helps contexualize my spending. Mint does the same I think for free.