25yrs old, making $30,000......

[DBL]

Originally posted by: rahvin

Originally posted by: DBL
Also, you need to reduce your 401K.

Don't follow this advice, a dollar invested in your 20's will net you 10 time more at retirement than a dollars invested in your 30's-40's.

Putting too much money into your 401K will cause you to significantly impair your ability to live and is not a good idea. Sure a 401K is great but not at the expense of all else. For someone making 30K in a high cost of living area, 10% is a tremendous amount to be contributing.

 

[iversonyin]

Originally posted by: DBL

Originally posted by: rahvin

Originally posted by: DBL
Also, you need to reduce your 401K.

Don't follow this advice, a dollar invested in your 20's will net you 10 time more at retirement than a dollars invested in your 30's-40's.

Putting too much money into your 401K will cause you to significantly impair your ability to live and is not a good idea. Sure a 401K is great but not at the expense of all else. For someone making 30K in a high cost of living area, 10% is a tremendous amount to be contributing.

Impair his ability to live?

He seem to be living fine. That extra $100 he doesnt put into 401K doesnt make his life anymore luxurious.

Unless you agree with other people that he should move out just because he is 25.

Don't listen to him. invest in 401k early. Max out your company's contribution. It'll grow a whole lot more.

The only thing I suggest here is to cut the life insurance policy and throw more money into IRA account. You can enjoy life later and definitely better off by the time you reach mid 30s -40

 

[HeroOfPellinor]

Originally posted by: iversonyin
Unless you agree with other people that he should move out just because he is 25.

His step-mother is kicking him out, dude.

OP, your best option is to find some friends and get a place together. My sister lived off far less for years in San Diego and still managed to save a lot of money.

 

[DBL]

Originally posted by: iversonyin
Impair his ability to live?

He seem to be living fine. That extra $100 he doesnt put into 401K doesnt make his life anymore luxurious.

Unless you agree with other people that he should move out just because he is 25.

Obviously, I am going under the assumption that he needs to move out. That means his finances will become MUCH tighter.

Personally, I don't care if he moves out and if he doesn't, he does not have to make many changes (life insurance perhaps?).

However, if he wants to move out, it's clear that an extra $100 on top of $550 is an extra 20%. That is a big difference. There is not much harm in reducing his 401K contribution, especially if he uses the extra money wisely. As people have noticed, he could be realizing and extra $300 more per month. 401Ks are great but not when you are stretched so thin. He can always add back over the next few years as his salary rises.

The bottom line is that not everybody can put 10-15% in a 401K. It depends.

 

[eits]

get a college education and get a REAL job

 

[spc hink]

Come up to the high desert. Me and a couple of buddies are going to move into a 3 bedroom appartment for $750 a month. You can have the couch.

 

[psteng19]

Originally posted by: darkxshade

Originally posted by: miri

Originally posted by: darkxshade
Well I'll be 25 this year and still living with my mom, only difference is that in a year or 2, she'll be retiring and moving to china with dad and transferring the rent to my name. And we're currently living in a rent controlled government apt building in manhattan NY paying a lowly $600/month rent(2 bedrooms, free electricity, free water). I rather be a loser for another 2 years than to give up such a deal.

wow, that apartment would go for 3k easy in manhattan and thats without the free electricty and water, how did you manage to get that apartment for so cheap??

forgot to mention free gas too... project building @ downtown manhattan, lived there since 1985, rent cap is $1k/year but with my current income it's only $600/year. Live on the 13th floor with a nice view overlooking the east river & brooklyn bridge... 20 min walk to wall street or city hall where I work. I'm never giving this place up... NEVER!

My guess is the Confucius Plaza in Chinatown, or something similar/nearby.

 

[liluqt]

Originally posted by: psteng19

Originally posted by: darkxshade

Originally posted by: miri

Originally posted by: darkxshade
Well I'll be 25 this year and still living with my mom, only difference is that in a year or 2, she'll be retiring and moving to china with dad and transferring the rent to my name. And we're currently living in a rent controlled government apt building in manhattan NY paying a lowly $600/month rent(2 bedrooms, free electricity, free water). I rather be a loser for another 2 years than to give up such a deal.

wow, that apartment would go for 3k easy in manhattan and thats without the free electricty and water, how did you manage to get that apartment for so cheap??

forgot to mention free gas too... project building @ downtown manhattan, lived there since 1985, rent cap is $1k/year but with my current income it's only $600/year. Live on the 13th floor with a nice view overlooking the east river & brooklyn bridge... 20 min walk to wall street or city hall where I work. I'm never giving this place up... NEVER!

My guess is the Confucius Plaza in Chinatown, or something similar/nearby.

Lots of good restaurants around there!

Anyways, I'm 23 and still live at home. My brother didn't move out until he got married at 27. The parents probably wouldn't have let him move out otherwise. The same story will most likely go for me as well since they are pretty traditional azn folks. So until I get married, I'll probably still be at home, which I don't mind because I'm hardly home except at night to sleep! I'm happier attempting to save for a house rather than renting anyways. They don't make me pay rent, but they do ask me to contribute overall whatever I can. My father is getting ready to retire and my mom has already given me a whole lecture about how I'm to take over most of the bills as my mom's salary could never support the house on her own and my parents don't have retirement money saved up. BLAH...

 

[Rudee]

I moved out of my parents home at 22. Bought my first condo at 28. Bought my second condo as a rental property at 32. Looking at buying a 3rd rental property very shortly. If all goes well I hope to retire at 50 (11 more years)

 

[JASANITY]

Originally posted by: mercanucaribe
Stay with your parents for a year or two and pay off your debt.

and go to grad school. when you get out, expect at least a 70k salary

 

[Descartes]

Originally posted by: rahvin

Originally posted by: DBL
Also, you need to reduce your 401K.

Don't follow this advice, a dollar invested in your 20's will net you 10 time more at retirement than a dollars invested in your 30's-40's.

10 times more in a decade or two, huh? Given that most people are lucky to double every 7 years or so I find that highly unlikely.

Point taken though. The earlier you start the better, in most cases.

 

[HardcoreRobot]

i would say buy a place and rent out all the rooms you aren't living in to pay off the mortgage

im not sure you are making enough considering where you live though.

if you are actually paying off debts and accumulating money while living at home, thats a decent option at this point...

 

[eits]

Originally posted by: eits
get a college education and get a REAL job

 

[SampSon]

That seems like low pay for southern california.
Thought about a new job?

 

[OulOat]

Complete difference in culture. In Asian families, living with your parents isn't mooching, it's saving money. Instead of your money going to some stranger, it stays in the family. Of course, Asian families take care of their elders when they retire too. We find it strange that there is so many retired Americans who complain about not being able to buy their medicines or pay for their homes. Where are the kids?

 

[DVK916]

Rent a studio.

 

[DVK916]

Originally posted by: RCN
If you are 25 and making 30k in CA my suggestion would be to move. After staying with the rents for another two years and banking the money of course.

Why would he want to leave California. That would be taking big step down. California > *.state.

 

[shopbruin]

Originally posted by: OulOat
Complete difference in culture. In Asian families, living with your parents isn't mooching, it's saving money. Instead of your money going to some stranger, it stays in the family. Of course, Asian families take care of their elders when they retire too. We find it strange that there is so many retired Americans who complain about not being able to buy their medicines or pay for their homes. Where are the kids?

yeah my parents keep telling me to move back home but i kinda like living on my own. well no, i kinda like living with my bf more. but the thought of all that income that would be freed up - no rent, my car insurance will drop significantly since i'll be out of LA, no more groceries/utilities expenses...

i make do, but it's not a lush life by any means.

 

[PandaBear]

If you can stand staying with parent, stay. If not, find roommates and share an apartment.

$30k in SoCal is not enough to rent your own place, let alone buying anything more than a card-board-box.

 

[RCN]

Originally posted by: DVK916

Originally posted by: RCN
If you are 25 and making 30k in CA my suggestion would be to move. After staying with the rents for another two years and banking the money of course.

Why would he want to leave California. That would be taking big step down. California > *.state.

Keep on believing that...............

 

[PandaBear]

women like dudes who don't live with their moms ftw

The last thing he can afford right now is a woman.

 

[PandaBear]

Originally posted by: spidey07
dashen, the definition of immaturity is the inability to act like an adult and still live with your parents.

It actually is disgusting how many young people think mooching off their parents is OK.

maturity/adulthood = being able to take care of yourself.
immaturity = living with mommy in the basement.

At the age of 25 you need to be able to take care of yourself, and if you can't...well....you are still a child.

I am 27, made $66k last year, donate $1k to charity, drive a 10 year old car that's paid off, no debt, going to grad school part time, and have a saving of $100k since I graduated college.

And yes, I have a very good looking Fiance and is living at home (more like helping my parents out on living expense).

 

[Zin]

I don't think any of us should judge someone because he/she is still living at home. We are not all fortunate enough to be in a good financial situation. Sounds to me like he has good intentions (just not in a position to act on some of these plans at the present time) I must give him credit for having a job and contributing in some way. If he has parents that are willing to help him get on his feet, I don?t see anything wrong with taking advantage of that (as long as he is making a valid effort and not abusing it). RaistlinZ, don?t let pride be the driving factor in whatever decision you make. Good Luck.

P.S You can always join the military and serve this great country!!

 

[totalcommand]

you need to find a couple roomates, and share a space with them.

 

[T2urtle]

I dont know about you but i'm making it work.

I'm 19 and i make roughly 26k before taxes. I moved out 2 months ago. To a diffrent state and everything. Just so i know i have to make it work and i cant run back to my parents.

I paid for my car in cash $9000 for a 98 maxima. So thats out the way. My rent here is $600 monthly. Insurance for the car is about 150$. Roughtly that list you made out is the same thing that i'm doing. Add in bills and take off life insurance. I have 20k in student loans. that i'm paying off right now. I lowered my payments 120 a month. I dont spend money on haircuts. I shaved my head bald. but yea if you move out get a roommate, you should be able to hang in there like myself. Just gotta give up on things. like the car and get a used one. maybe grow out your hair a little more. go out less, right now i find myself working more then i'm at home. Mainly because when i'm not working i'm spending money. Can't really afford to do that. I find myself not eating out much.