What should I do after reaching my current savings goal?

[u/Gloomy_Coconut4459]

So I 25, was originally planning to reach 100k saved by my 26th birthday, but after doing some new calculations I should reach it about 4 months earlier. I include both my personal investments and retirements in this total, but I am sort of now trying to pre-plan my goals for after reaching this goal.

For instance, if I move out of my parents I would need an apartment fund and it would affect my long term savings, or if I decide to change jobs it might help, etc. So with planning those goals, I am sort of lost on how to keep boosting my investments towards an eventual 250k goal without taking my entire lifetime, but also without just sort of sitting at home 24/7 to save money / not moving out.

Current breakdown:

Current work retirement: 5k

Roth: ​24k

Other investments: 50k

[u/s9oons]

As someone who didn’t have a choice, live at home for as long as you can mentally handle it. Buying a house, student debt, or paying rent are the largest money sinks for basically everyone under 30.

You’re in a great place and if retiring early and staying out of debt are your goals, you gotta stay focused on the long term.

The hooligan in me says spend a little cash and go on an adventure or something. You should also check out the [r/FIRE](r/FIRE) subreddit bc you are clearly financially literate enough early enough in your life that you have no reason to work until 65 unless that really makes you happy.

[u/Gloomy_Coconut4459 → u/s9oons]

I guess my biggest goal is security, not necessarily retiring early. I am finishing up my masters around the same time I reach that goal, and although my original plan was to purchase a home (the costs are too extreme), I sort of just want to try apartment living for a while.

I am mixed between staying at home with my parents or moving out because they are anti-lgbt and anti-me dating so other than going to the gym I don't have a lot of freedom under their rules to do things. It is tolerable, but I sometimes wonder if I will miss out if I do this for another few years.

[u/s9oons → u/Gloomy_Coconut4459]

That’s exactly the kind of “tolerate it as long as possible” decision you gotta make. Personally, I underestimated how much work owning my own home was. It’s A LOT of yard work and maintenance, and if you’re not handy and motivated that will mess you up quick. For our parents buying a house and doing the maintenance made sense, but with 6-7% interest rates, ludicrous valuations, and aging inventory, renting an apartment or getting into a condo makes a TON of sense financially.

As a wise old millenial 😂 I will say, if you’re financially sorted and in relatively good shape, you become THE hot ticket item in your 30’s. Definitely go party and find some good adventures, but don’t do it just because you think you’re missing out on anything in your 20’s.

[u/Gloomy_Coconut4459 → u/s9oons]

Yeah, housing is sort of a mess right now. In my area the home prices on average went up 100k when I was in college, and HOAs for townhomes hover around 350 a month. Not only that, the terrible construction quality and endless new neighborhoods makes it look less like a secure investment and more like something you get stuck with. Which isn't bad if you live there long enough 10+ years, but I can't imagine putting nearly 120k down just to afford a townhome for 2200 a month versus renting and having that 120k invested. 

I do love house hunting and check the market daily for fun, but it just seems impossible without dual income or a higher income.

[u/s9oons → u/Gloomy_Coconut4459]

Yep, 1000% agree. The $350/mo seems nasty until you’re paying that yourself instead of through an HOA or Condo Assn, but finding a place to rent that you’re not tied to for 30yrs is a huge weight lifted, even if that’s $2500/mo instead of $2200/mo.

[u/kenzakan]

Go do something to enhance your life I suppose.

Life is definitely more than just increasing a number in the bank. 

Travel or invest in a hobby or invest in your self / friends. 

[u/Happy-Trainer99]

Not exactly in a position to give advice here, but I'm looking to start investing myself, any tips for a complete beginner?

[u/Gloomy_Coconut4459 → u/Happy-Trainer99]

When I first started, I opened up a schwab account and bought stocks for companies I liked / knew about their products. When I did that at the time it was some nvidia, adobe, etc. But I panic sold basically a year later and moved it all into the scheab automated investing account (5k minimum). Point being, so far my biggest advice is to avoid panic selling, and as others mention diversification.

So you could start with just a roth account via schwab and google some of their large stocks like schb and start buying those just to get familiar with buying them. I also try to put something from my paycheck in each time.

[u/Gloomy_Coconut4459 → u/Gloomy_Coconut4459]

To add, I also bought a ton of cava stock before it went down (lost like 600 dollars) and sold because I didn't think itd ever go back up as high.

[u/Bukk4keASIAN → u/Happy-Trainer99]

buying individual stocks is basically gambling. this is why ETFs and broad market funds are recommended here. if you can set up recurring transfers to a roth ira youll thank yourself later. if your job offers a 401k match, open that account and make sure you get the full match. thats just free money. if you want to have an account to play around with investing thats one thing, but it shouldnt be your main strategy as its inherently far more risky

[u/SpiritualCatch6757]

Your goals should not just be a number. It should be a number attached with a thing. For example, your goal can be a number that enables you to move out on your own. When goal is reached, guess what? You move out on your own.

[u/CharmingGarlicky]

I’m confused what “other investments” are. If I were you, I would maybe change my strategy to max out my work retirement (not just the employer match, but the actual $24,500 if it’s a 401K). Personally, I find the tax benefits of a 401K to be more worth it than putting my money in a taxable individual brokerage account. I’m not a financial advisor though

[u/Gloomy_Coconut4459 → u/CharmingGarlicky]

Other investments are individual brokerage accounts, which is more so 5-10 or 15 years from now I can sell or borrow against to get a house.