Hey everyone,
I am a 28F currently living in Costa Rica as an American expat working for a US company. Looking to benchmark how I'm doing financially and if anyone has any recommendations to improve.
Income and Assets: Around 47k Total
- I make 80k a year from my job. Total comp is around 100k+ as I do not pay for my housing or car here. Only gas and health insurance.
- I have 30.8k in my retirement fund up (mainly Roth 401k, recently switched to pre-tax)
- I have 4k saved in Roth IRA
- 4k in a taxable account that is used for crypto and trading
- 3k invested in crypto excusilvey
- 4k saved up in HYSA (spent a lot of money in Sept and Oct)
- $700 cash
Debts: 70k
- Over the past 3 years, I've knocked out 8k in credit card debt I racked up in college
- Credit score 619
- 60k in student loans in a deferred plan
- 1.7k in a closed account, I'm considering just paying all the way off
- 6k SBA loan.
Before 2021, I had perfect credit and was doing fairly well as a college student. I had a stint as an entrepreneur in college that completely wrecked my credit score and my finances. I also transfered schools out of state which cost more and forced me to support myself, but without these decsions I wouldn't be where I am. I have a stable career and high growth trajectory within the company I work.
So, tell me. How am I doing?
Rate my Financial Health (28F, 80k salary)
byu/JM2TM infinancialindependence
Posted by JM2TM
4 Comments
You’re doing alright compared to most, but if you’re looking for FI you probably need to pick up the pace. With 80k and no real expenses where is your money going? Sounds like spending is high for someone making 80k.
There are many views in this I am sure, I’ll offer mine.
If I’m in your situation priority one is paying off debt, period. I do not buy into debt for any reason including “you can make more than the interest on the market”, etc. debt is a deeply constricting mental burden that will not allow you to flourish financially.
Priority two, pay yourself FIRST. Max out 401k contributions, stop spending and work to save a predetermined amount each month. It’s uncomfortable before it’s comfortable.
In short, anecdotally, that debt number is strangling “financial independence”. You cannot achieve freedom with debt.
*edit – I’ll add that you make more than enough money to get debt free and work hard to retire early. I was making about the same at 28 and by 40 retired. That said, it took extremely disciplined financial rigor to get there that early. If you had a goal of 50, you’re on track.
What are your actual annual expenses (and what would they be if you lost your housing and car comp)? How long is the loan deferment? Is it subsidized or accruing interest? What are your interest rates on the CC and loans?
Your cash/emergency funds might be too low but depends on your expenses. After that, attacking your highest interest debt will be the most impactful.
Keep at it!
Just keep saving and ensuring it’s invested. Trying to compare yourself to some mythical standard is not advised. The more you save, the earlier you reach FI.