My first ER milestone, $5k !!

[thefed]

I have my first $5k in retirement accounts (Roth and 401k). I started about 1.5 yrs ago, I'm 22 now.

I am ramping up my contributions to about $6200 this calendar year....due mainly in part to my new business that is taking off really well.

anyhow, just wanted to brag. Between my first $5k in accounts, and having a nice chunk of equity in my home right now, I feel like I'm doing pretty well for 22.

see ya

 

[retire@40]

I have my first $5k in retirement accounts (Roth and 401k).  I started about 1.5 yrs ago, I'm 22 now.

That's the way to do it.

Did you set up goals and additional milestones for yourself, like trying to save at least $1K a month, or trying to get to the the $10K milestone by age 23, etc.

Or are you just trying to save as much as you can as fast as you can without a projection?

 

[LOL!]

Woo hoo! I wish I could double my retirement accounts in a year. Congrats!

 

[free4now]

Very nice! You surely must understand how much more effective it is to save money early rather than later. That way the compounding does it's work. The other thing I'd suggest is to learn about investing early. I can't believe some of the crazy investment mistakes I made early on, but since I was playing with relatively less money it was not the end of the world. And in fact some moderate risk taking when you are young can be a very good thing to do.

 

[Cut-Throat]

I have my first $5k in retirement accounts (Roth and 401k). I started about 1.5 yrs ago, I'm 22 now.

I am ramping up my contributions to about $6200 this calendar year....due mainly in part to my new business that is taking off really well.

anyhow, just wanted to brag. Between my first $5k in accounts, and having a nice chunk of equity in my home right now, I feel like I'm doing pretty well for 22.

see ya

Yup, you are way ahead of me. I did not get serious until I was 29 and had a lot of debt. Was basically debt free by age 31, retired at 50. You are on your way!

 

[thefed]

Unfortunately, I do have a lot of debt, mainly the 10k I put down to get this business running. But at the current pace, it should be paid off in 2 years, pocketing still a nice chunk of change each month along the way. Most of my debt is at 0%, so why rush re-paying...ya know?

I haven't set goals on retirement $'s yet, but I'm going to soon. Dammit, I'm gonna do it right now.

My goal is a minimum of $11k total in retirement accounts by Dec 31, 2006. Right now that consists of a Roth IRA, traditional IRA, and 401k. I put 8% in my 401k to get a 1% match. Then I max the ROTH, then the rest goes in the IRA.

I want 100k total net worth in exactly 4 years, so on Dec 31, 2009, I want to have a total of $30k in retirement accounts, and $70k equity in my home (I currently have 30k, and a 15 yr mortgage).

There's my goals....I'm ready to get 'em!!!!

 

[laurence]

Good work fed.  I find it helpful to set an annual savings projection and watch it happen as the year progresses.  I also keep a quick calculation (excel formula) that multiplies whatever I have by 4% so I can see what I would have available to live on right now.  Then, I divide it by 2080 to come up with an hourly number as if the portfolio were an extra family member who has a job and works for the family.  It's a strong motivator.

Keep up the great work dude!   

Dave

Never thought of that...let's see, hmmph, my portfolio is only earning $5/hour! What a deadbeat!

 

[BigMoneyJim]

Congrats! The first $5k is the hardest.

The bull market helped, but it was really impressive for me to see the amount grow upon itself. Keep contributing.

 

[TomSimpsonAZ]

Unfortunately, I do have a lot of debt, mainly the 10k I put down to get this business running.  But at the current pace, it should be paid off in 2 years, pocketing still a nice chunk of change each month along the way.  Most of my debt is at 0%, so why rush re-paying...ya know?

I haven't set goals on retirement $'s yet, but I'm going to soon.  Dammit, I'm gonna do it right now.

My goal is a minimum of $11k total in retirement accounts by Dec 31, 2006.  Right now that consists of a Roth IRA, traditional IRA, and 401k.  I put 8% in my 401k to get a 1% match. Then I max the ROTH, then the rest goes in the IRA.

I want 100k total net worth in exactly 4 years, so on Dec 31, 2009, I want to have a total of $30k in retirement accounts, and $70k equity in my home (I currently have 30k, and a 15 yr mortgage).

There's my goals....I'm ready to get 'em!!!!

Dang.....reaching these goals in your 20's is rare and impressive these days, good job dude!

 

[Jay_Gatsby]

Very nice!  You surely must understand how much more effective it is to save money early rather than later.  That way the compounding does it's work.  The other thing I'd suggest is to learn about investing early.  I can't believe some of the crazy investment mistakes I made early on, but since I was playing with relatively less money it was not the end of the world.  And in fact some moderate risk taking when you are young can be a very good thing to do. 

I'd like to echo Fireme's sentiments. Investing early (right after graduating college, if not before) is the way to go. Unfortunately, youth is very rarely accompanied by financial wisdom. It's so much more satisfying to plunk down $250 for an iPod, another $1,500 for a notebook computer, another $60/month for cable TV, $100+/weekend in bar/food tabs, etc... True, not spending money when you're young can create regrets later stemming from missed opportunities for memorable experiences, but I've never understood the need to have every toy imaginable when you're 21-25 years old. One or two toys would seem much more reasonable, but then again, that's probably my 35-year old "wisdom" talking...

For the young, the idea of retirement, even early retirement, is a long way off in the future. It will probably come as a complete surprise how fast the years go by, and that there are some things one experiences from 30-45 that are far more valuable than an iPod...