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July 24, 2007


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Thanks for the great blog and finance advice. I just read the article in BW last week and thought it was great. I'm actually in my 20's (26 to be exact) and have been contributing to both 401k, up to the match, and a fully funded Roth IRA for a year now as well as getting out of student loan debt which had a variable rate (I still have $15k but it's locked in at 2.875%). I'm wondering what your idea would be in starting an escape fund? Should I ratchet up my 401k above the match before I do this or should I go ahead and start the fund? Thanks for the help.

Personally, I'd fully fund the 401k first. That's what I did/am doing and while it will take you longer to get your escape fund up to where you want/need it to be, you'll be a TON better off at retirement.

What's everyone else think?

I wish I had started when I was in my 20’s. Now that I am older and somewhat wiser I have learned to save for my retirement. I put away 35% of my paycheck towards 401k and company stocks. I also transfer $400 from checking to savings each month. Many people in their 20’s don’t believe that they make enough to save, and generally that is not true. When I look back I could have skipped the movie theatre a few times a month, shopped at a discount store instead of going to a department store, and ate at home more often. Saving $5-$20 a week can add up over time. The best advice I can give to those in their 20’s is to stay out of debt.

I'm at my 20's and I concentrate more on business and investing. To me, since I'm still young and single, it is a good time to start building a business and invest my money as I can take more risks than others. For security, I also have a budget to control my money and save up my emergency account. So I can pay more attention to fight for my future(business and investment).

I also in my 20s and just graduated from college, but I work for a nonprofit so its a 403b with no matching.
What else can I do besides that and IRAs ( can i get both Roth and Trad or only one)
also this may sound dumb but, how do i go about and starting to invest in stocks. thanks

It would be impossible for me to contribute the maximum allowed to retirement savings (over here you can contribute your entire earned income).

I've set it up so that my retirement contribution should see me through at retirement ok, and then I've started my freedom fund with the minimum monthly amount for that account. I then more or less ratchet them up evenly (by the same £ amount) with pay rises and so on.

If you're already investing in stock funds through a Roth IRA and 403b (or other tax-deffered account), then I would recommend starting to save towards buying a house if that is in your future plans.

wel im a girl so im hoping to get married within the next 5+ yrs and let my hubby worry bot that lol

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