I’m a a mid-20s female working in the high tech industry. I’m a saver with
a good an amazing income for my age and I’m slowly learning how to actually spend money on the things that matter to me. I write this blog because I found a severe shortage of people talking about money in their twenties who have some to work with. We shouldn’t just talk about money when we’re in debt; we should also talk about money to help us figure out how to save it.
Most PF blogs are about how to get out of debt or why you should stop buying coffees every day or bag your lunch. I don’t drink coffee and
daily team lunches are important for team building you can still have social lunches and bring your food. I have never had any debt (other than that one month where I made a small typo when making my credit card payment, oops).
On the other hand, my friends don’t want to listen to my stories about scrimping on certain things or the mundane details of my finances. For example, I only pay for a Netflix subscription in the summers when there is no network TV (even though it’s only $10 per month…). I do, at long last, have a smartphone and it’s not the cheapest one or the best deal, but I take great enjoyment out of it and I’m glad I bought it.
I don’t drink alcohol much – my typical bar bill is $10 if it was just for drinks and $25 if it included food – and I have no interest in drinking more alcohol. Happy hour hopping and hangovers aren’t my idea of a good weekend. I’d far rather be out for a walk, playing sports, hanging out with friends, having fun with spreadsheets, reading a book, or cleaning my apartment.
I have a huge crush on math, maxing out my 401(k) and having amassed a $300k net worth at age 25. I’m learning that my high income is a great exercise in how to spend/save six figures each year, balancing needs, wants, and saving/investing. I love the simplicity of index funds. I bought a condo in 2012 and plan to pay it off by the time my mortgage rate resets in 2017.
- I do my daily banking at a local credit union with amazing customer service and no fees on the checking account. It also has rewards on the checking account, but it’s not worth my sanity to count my debit card transactions each month.
- I also love my Charles Schwab checking account though for its reimbursed ATM fees worldwide.
- I love optimizing, but I also try to optimize efficiently – my favorite credit card is the Fidelity Investment Rewards American Express Card that gives you 2% cashback on everything at merchants that take American Express with no annual fee.
- I also have a credit card with my credit union (no foreign transaction fees and 1% cash back on a visa, so not a bad base card!) and the Amazon.com visa since for a while, I was doing a lot of shopping on there.
- I keep most of my savings at Ally, an online bank with rates currently around 0.84%. I don’t earn much interest any more since my savings is now down to only about $20,000 versus the gearing up towards $100,000 it was before I bought my condo.
- My original mortgage loan was with my credit union, but I did a no-cost refinance it to an online lender with a better interest rate (2.5% 5/1 ARM!).
- I use Vanguard for all of my investments including my Roth IRA and taxable investments and thankfully my employer has great Vanguard funds in our 401(k) as well. You can’t beat their low fees.
Finances are *personal*. There are so many different ways to do things and still be doing well. Don’t take anything that I say as gospel. How I’m doing things works for me, but it could crash and burn for you. That said, you can learn at the very least another perspective or way to go about things by reading about how I manage my finances.
I hope you enjoy this documentation of my slow journey to wealth and my struggles with spending versus saving.
Good luck in your personal finance adventures and feel free to contact me via email if you have any questions about what you read here or just life in general!
You can reach me via email: leightpf at gmail dot com. I do not accept ANY guest posts or advertising requests. Thank you for not contacting me about those.