27 yr old from PA says Hi!

[joetab24]

Hello everyone...I found my way here from the Motley Fool web site.

Last month I finally opened my eyes and realized I needed to get my act together financially. In the past month I've been quite busy. I've set a 403(b) account at work (I'm a teacher), established Roth IRAs for my wife and for myself. We maxed the Roths for 04 and put our tax return into our 05 accounts.

Just yesterday I filled out a W4 form at work so that I could increase my 403b contributions by $70 a month. As you can see I am eager to change my careless ways.

Oh yeah, I am most proud of the fact that unlike most of our friends and family members we purchased a house we could actually afford, rather than borrowing all the money that the lenders were offering. Our only debts are our house (we owe 89K) and our car (about 12.5 K). I wish I would have found this site before buying the new car. Live and learn.

Anyway, I am excited to be a part of the "club" and, although I enjoy teaching, I've got the early retirement bug. BIG TIME!

[kayelem]

Joe:
Congrats on getting smart at 27! I have to confess that I was well past 30 and bought my first house when I realized that negative net worth was a problem. I missed a lot of opportunities between 27 and 30, but first thing I did was pay off debt.

Anyway, you are much smarter than I! Welcome!!!!

[Helen]

Joetab,

You're doing well. You are getting started at a really young age. It seems like no matter how young people start, they always beat themselves up for not starting earlier.

That being said, I didn't get started until I was 38 ! I'll still make it out by 56, but I wouldn't have to be saving at such a high rate if I had started sooner.

I look forward to your posts,

-helen

[azanon]

Don't sweat the car. Now just own that sucker for 15+ years and take good care of it. Make sure and drop comprehensive/collision after about 6 years or so cause the car's value - deduction usually isn't worth the amount they want to charge you to insure it.

Bought mine new too, but she's 10+ years old now, and i'm just breaking her in.

[BUM]

joetab24,

Welcome a-board. You are helping to restore my faith in the younger generation. Congratulations on embarking toward FIRE. So many 30somethings are adrift in materialism and debt that it genuinely worries me.

Keep up the good work!

BUM

[wildcat]

Yes, go 20 somethings!! I am not always impressed with our fellow 20 somethings ability to save & invest money. I hope schools make financial planning 101 a requirement for students before they get their first job. I was lucky to have a professor that basically taught the course requirements but also taught us about what steps to take to become FI. Glad to hear your story and stay the course.

[kat]

Joetab,

I think you're doing great!

Just happened to see the advice to drop collision coverage after six years. I didn't. And at 6 and a half years I was in a car accident and my car, a Subaru Legacy, was totalled. My insurance pay out on the collision coverage was tremendous. I added a couple thousand and bought a brand new Honda Accord. (I'm about to go purchase a used Subaru Outback and got offered a great trade in price on the now four year old Honda from the Subaru dealer.) I'm no expert, just wanted to share my experience that six years is too soon to drop collision coverage.

kat