what to do with an extra 1k a month...

[Abstract]

Sorry for a bit of a thread hijack, but just to ask a question based on what has already been mentioned in this thread, what total percentage of your take-home pay (i.e. after income tax) should you be saving? I've been aiming towards 35-40% right now, and just putting the money into a bank account that earns 4.9% interest until I figure out how to invest. This is including the 15% you guys recommend putting towards retirement, I suppose.

I'm not married, have no kids, have no car, and have no mortgage. I pretty much have no assets, and have been working for just over 1 year.

Is 35% enough if I do plan on getting married in a couple of years, buying a house, etc? I could actually be saving more, but I don't know if I want to give up everything to save, save, save. On the other hand, there are a number of things I could cut out quite easily.

 

[kmaute]

If you are debt-free (it sounds like it but I want to make sure), you would first save 3-6 months of your expenses. Following that, start investing 15% of your income for retirement. Max out any match you have in a 401k and then Roth IRA (assuming you're in the states). Once you are doing that, start stockpiling cash in a Money Market Account or some other FDIC insured liquid asset. At this point in your life, you can cut corners and live far below your means. This money can cash flow a wedding, house downpayment, college, etc...

If you decide to buy a house, do it with the largest down payment possible with a 15 year, fixed rate mortgage with a payment that does not exceed 25% of your take home income. With the exception of your mortgage, never borrow money again. You will retire a millionaire several times over.

Percentage wise? I would save every cent possible. Get started on the right foot and never look back.

 

[Melrose]

Save many months of living & reduce debt. Debt reduction, you could say, earns you money in the long run due to interest. Money spent now really is money saved later.

I can't believe you're asking this.

Hookers and blow, of course!

Dems some cheap hookers, mate.. He said "an extra $1,000 a month" - not a day.

 

[iJohnHenry]

Dems some cheap hookers, mate.. He said "an extra $1,000 a month" - not a day.

His standards might not be your standards.

what to do with an extra 1k a month...

Enrol in the Glocke A Month program.

 

[Statik]

thanks for all the advice,I appreciate it, but I asked for mutual funds for a reason.
<snip>
4) Based on prior experiences with financial advisors, Ive come to the conclusion that unless you have tens of thousands or hundreds of thousands to invest they arent worth the time or money.
<snip>
.

Yes; Depends on the fund. Some do have a minimum investment amount.

What about taking a portion of the first $1000 and use it to pay for a reputable investment course. I've taken a few that were quite eye opening and all of them valuable.

 

[dmr727]

Dems some cheap hookers, mate.. He said "an extra $1,000 a month" - not a day.

Hey man, I'm married. What do you think I am - some kind of ***hole?