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Updated about 7 years ago on . Most recent reply

User Stats

162
Posts
50
Votes
Jared Baker
  • Hartford, WI
50
Votes |
162
Posts

Set for Life Book Question

Jared Baker
  • Hartford, WI
Posted

I have been reading @Scott Trench book Set for Life and a question occurred to me while reading that I am hoping to get some insight to.  It says that the first priority after paying off all bad debt is to accumulate $25,000, or a years worth of living expenses.  Based on the reading this book is focused towards someone like me, just graduated from college, beginning my first job making about $50,000.  Now my question is, should I be putting money into some sort of retirement account like a 401K?  I ask this because it does not mention anything about retirement accounts, at least as far as I have read, and if I did put money into a 401K it will take about 4-5 years to save that much with my current living expense, (the largest parts being rent, insurance, and transportation, as mentioned in the book)

Thoughts on this would be great.

Most Popular Reply

User Stats

102
Posts
80
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Justine Scheuher
  • Investor
  • Louisville, KY
80
Votes |
102
Posts
Justine Scheuher
  • Investor
  • Louisville, KY
Replied

Hey @Jared Baker!  I just read Set for Life as well. Keep reading and it will give you more insight. At the end of the book there is an Appendix w/ info on Retirement Accounts and more details pg. 223. Check it out. 
Seriously consider house hacking--it cuts down on a huge chunk of your living expense. I have 2 roommates that live in my house and only pay $280/m in "rent." If I would have know about BP sooner, I would have bought a house where I could live for free. I used an FHA loan (3.5% down), made it really easy to find a good house in a good area.

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