25 years with big dreams!

[Bigdreamer]

Hello to all,


I just wanted to use this forum to introduce myself to the site. I am a 25 year old (26 in a day) year old from Little Rock, AR. (Let the jokes begin....) I found this site while researching different information for finances and early retirement. One of the biggest things that scares me to death is not having a comfortable retirement...or none at all. I refuse to ever let that happen so I'm starting now. Should have started earlier but what do they say about hindsight? I currently work in the automotive business where I've been for 6 years now. I've always managed to do well and can truly say I haven't felt the crunch of the economy....thankfully. Alot of this is due to being young with no kids and a nice disposible income. As far as finances I make around 60k per year, looking at a position for 100k+ in about a year or so. I'm stable in my job, relationship, and personal life. I just want to focus as much energy into my future and I figure this will be a great site to stay on track. Lots of great information and it seems like lots of "winners" in this group. Currently no assets to speak of or investments. I resell cars from time to time and that is a nice side income. I've been a little hesitant to put my money in any market when I can almost guarantee I'll double it outside of the market. Maybe I'm overlooking something. Anyways, 2013 is going to be a good year for me. I want to learn as much as possible and meet as many like minded people as possible. My ultimate goal is to own my own dealership some day. Well in roughly 15 years exactly if I can. I'm well versed in all sides of the industry and I feel I have skills and insight to truly succeed in this. I see alot of people come on forums talking about opening a dealership but have absolutely no experience or capital. I plan on having plenty of both when my time comes. I figure If I can save enough capital between now and then this will lessen my chances of failure. I look forward to hearing back from any and all. Lets chat.

[Arifriekinel]

Hi, welcome to the forum! Good luck this year

I've also recently become afraid of not retiring.

On top of that, I've got an unreasonable fear that they'll cure death for our generation, so we'll live forever but I'll only have saved enough money to live to age 100, and I'll have to work for another 40 years to retire again!
But that's neither here nor there :P

[heeyy_joe]

Welcome aboard. It's good to have goals. Don't forget to diversify.

[caninelover]

Welcome! You have a lot of great energy, ambition, and goals. I love to read that. I wish I had my act together as much as you at age 25...I kind of stumbled through/into things at that age. If you stay focused, and learn a few things (especially from the smart people here) you have a bright future!

Don't worry so much about assets right now; just focus on getting in the habit of spending less than you earn and setting the extra aside for your future. That is the makings of a great beginning, then read/learn/ask questions...the rest will fall into place.

[Bigdreamer]

Arifriekinel, heeyy_joe, and caninelover thank you for your kind words.

Arifriekinel, you are right! By the time I'm a bit older they might have the cure for old age, I better save a ton.

I think I'm right about where caninelover thinks I should be. I do need to focus more on the lbym rule. My girlfriend (future fiance) just started working though and that will help add a good bit to the pile. I'm hoping to double the household income within the next few months and save most of those earnings. My goal in saving for the business I want to have was to have at least 240,000.00 saved in ten years. Thats without adding to other things and not counting any extra. This is only for the car business. I also more than likely wouldn't use all my own money when the time came. Just keep it as spare reserve for keeping things afloat. I think if I'm aggressive in my savings I can do this.

Can anyone comment on how the stock market has affected them personally? Whether young and you invest or older. Have you found it to be a reliable means of making money throughout the years? I understand people can become rich overnight but Im looking for more of the average joe story. My personal feelings are to just start a business rather than invest in the market....initially at least. Obviously if I attain wealth of any degree than I should in fact be diversified in my investments, stocks, bonds, etfs (which I know nothing about really) lol. I'll be the first to admit I'm limited in my knowledge of traditional investment vehicles, however not as bad as some.

Thanks for letting me rant....

[jclarksnakes]

I think you will find that there are many of us on this forum who made it to FI primarily by investing in the stock market year after year and watching our investments there grow.

[BuysToys]

I put $2K per year into my IRA using low cost indexed mutual funds from 1990-1996. While I don't have all the numbers to say exactly what those initial investments are worth now, I CAN say that they have grown well and were the foundation for my retirement planning. Since 1996 I have continued to add funds through Roth and 401(k) contributions. This is why DH and I can consider complete retirement in ten years rather than both of us working until we're 70. (Won't really be ER for DH, but it's a decrease in the number of years he planned to work. He's OK with that!)

If I were in your shoes, I would absolutely be putting some of my savings into a stock mutual fund and adding to it monthly, quarterly, or yearly. At least open a Roth as those earnings will grow tax-free. The key is to think long term and not getting involved in the day to day movements of the market.