40M, married with 3 kids. I had very little net worth till 2019. Bought a house in 2019 for 300k and it has appreciated to 400k. So equity in house close to 150k. Been saving 8% in 401k which would be close to 100k now. Net worth close to 250k. I know am behind but I come from a poor background with no financial knowledge. Taught myself personal finance and basics of investing. We need a bigger house in maybe 2 years. Please review and let me know what I can do better.
40M – what can I do better
byu/Silver-Bet8326 inpersonalfinance
Posted by Silver-Bet8326
3 Comments
Hard to know exactly what you are looking for but it sounds like you are doing some of the right stuff. Create a plan and stick to it – invest what you can every month or whatever you are comfortable with.
Didn’t give too many details like household income or monthly budget, but honestly you are on track just fine friend. Focus on living below your means, spend less than you make, stash away extra every month, have an emergency fund, etc.
Without know more about your circumstances here is a good savings flow, in order of importance for me:
1. 401k match: contribute up to company match
2. Emergency fund: build 3-6 emergency fund. Unless you have high interest CC debt, then start with 1 month emergency fund, then tackle CC debt.
3. High interest CC debt
4. Roth IRA: max out Roth IRA
5. Max out 401k
6. Taxable brokerage / 529 / pay down mortgage / other goals