“I Want to Achieve My Financial Goals Within Five Years. What Should I Be Doing Now To Get There?“ (Listener Intervention)
Money Rehab with Nicole Lapin
Key Insights
Why is it important to balance current spending with future financial goals?
Balancing current spending with future financial goals ensures you can enjoy the present while setting up for long-term success. It involves allocating funds to essentials, extras, and future goals like retirement and major purchases.
What are the three categories in a spending plan according to the speaker?
The three categories in a spending plan are essentials (housing, transportation, groceries), extras (nice-to-haves like dining out), and end game (retirement, long-term goals).
How much should be allocated to each category in the 50/30/20 rule?
The 50/30/20 rule suggests allocating 50% of income to essentials, 30% to extras, and 20% to future goals.
What is the recommended percentage of take-home pay for housing costs?
Experts recommend housing costs to be no more than 30% of take-home pay.
What options does the listener have to increase savings for their down payment?
Options include finding a cheaper place to live, asking for a raise, taking on a side hustle, extending the timeline for saving, or considering a less expensive home.
What are some safe investment options mentioned for building a down payment?
Safe investment options include Treasury bonds, Certificate of Deposits (CDs), and diversifying investments in the stock market with safer offerings.
Why might investing in the stock market be considered a higher risk, higher reward option?
Investing in the stock market involves risk of loss but historically has returned 8% year over year, offering potentially higher rewards.
What is the yield offered by Bank of America's featured CD at the time of the discussion?
Bank of America's featured CD offered up to a 4.35% yield at the time of the discussion.
What is the listener's current financial situation in terms of income and expenses?
The listener makes just over $100,000 annually, spends around $3,300 on rent, $300 on utilities, and $380 on student loans monthly. They have about $10,000 saved and $20,000 left in student loans.
What is the listener's primary financial goal within the next five years?
The listener's primary financial goal is to buy a house within the next five to six years, ideally with a down payment of $150,000.
Chapters
- The listener feels stuck between enjoying the present and planning for the future.
- Nicole suggests a thoughtful, intentional spending plan to balance both.
Shownotes Transcript
