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Updated about 7 years ago on . Most recent reply
![Jared Baker's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/543746/1621492190-avatar-jaredb18.jpg?twic=v1/output=image/cover=128x128&v=2)
Set for Life Book Question
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.
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![Justine Scheuher's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/809849/1621498191-avatar-justines3.jpg?twic=v1/output=image/cover=128x128&v=2)
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.