My Introduction

[NinjaPigeon]

Hello,

I've been a lurker for about 6 months now but decided it's about time I registered. I'm about to turn 28 but was living check to check until just over a year ago. Now my goal is to get a positive net worth, and hopefully, to continue with the momentum.

NP

[kat]

Welcome!!

[Dawg52]

Welcome! Thats the first step, to make up your mind to start a portfolio. Develop a budget and pay yourself first through a 401k plan or an IRA. Also, please buy used cars! Buying new cars is one of the biggest money losers of all time, especially when you are starting out. Good luck!

[NinjaPigeon]

Yah, I already made the new car mistake And I swear my car is cursed. I wrecked it 3 months after purchase (my fault), then again a year later (not my fault), then someone threw a brick through my rear window the week before christmas. Oh, and somewhere in there it flooded! In short, it's a bit of a moneysink, and wasn't all that I hoped it would be.

I'm hoping to hit a positive net worth around June of this year. Not quite as impressive as the 100k milestone, but I am still amazed I've come this far in so short a time!

So as not to risk boring anyone who doesn't care with details of my plight, here is my blog if anyone is actually interested and has any advice for a newbie.

[Robert the Red]

Quote:

... any advice for a newbie

Two simple things you've undoubtedly heard before:

• Don't eat meals out much -- even lunch -- the costs add up fast and silently
• If you're about to buy something, put it back and wait until tomorrow -- maybe you won't need it by then

[Nords]

Welcome to the board, NinjaPigeon. That should be an interesting avatar!

Sounds like you've already learned a lot about 401(k) contribution matches, buying used cars, & rehabbing houses. The trick is to finish everything with just 24 hours in a day... oh, wait, you have a girlfriend. Well, it'll all get done eventually. Does she know how to tape drywall yet?

As you've mentioned you should keep maxing out both the 401(k) (up to the company match) and the IRA (whether it's deductible or non-deductible or Roth). You might also want to see if you're eligible to start contributions to some sort of self-employed IRA while you're waiting for your new employer's 401(k) to kick in. I know zilch about those rules but there's IRS Pub 590 and posting your query to Ed Slott's IRA Help forum.

[SteveR]

Glad you decided to get out of stealth mode and become visible.

A positive net worth is a good thing to have. Many of us here remember those days. Once you get the "FIRE" bug you find ways to get to FI so you can ER.

Welcome to the board and I look forward to your input and comments.

[Martha]

The link to publication 590 from the IRS is www.irs.gov/pub/irs-pdf/p590.pdf. I believe that if you are eligible for a 401k for even 1 day of the year, you will only be able to deduct IRA contributions if you meet the income limits. (You asked the question on your blog)

[wstu32]

welcome...i joined last month and love this forum!

[BUM]

Welcome a-board Pidge!

Congrats on being about to turn 28. You have a powerful tool many old timers don't...time and compounding can be magical over just a decade or two. Heed Dog51, and pay yourself first.

Can't wait to say "I told you so" when you reach that $100,000 mark. It will be sooner than you think if you LBYM.