22 y/o is saving up $100k in 3 years realistic or worth it?

[bentleychris23]

I currently don’t have a car just yet I have $5k in my saving for one I have 0 debt I’m currently working part time and able to save close to 1k/2k a month depending on my hours I’m working part time right now making about 16/hr. A bunch of full time positions are opening up were I’m working at and pay will be about 21/hr. I’m currently in a lucky position were I don’t have to worry about any kind of bills other than getting my self food and paying my phone bill. When I get a car I plan on working this full time job making 21/hr and picking up another day time job to make up for the rest of the savings. I would like to use this 100k for a future down payment on a house or something. I’m not sure what the house of market is going to look like in 3 years but there are few places around me for like 100k/150k that I’m looking at I’m sure other things will pop up and and what not I’m just not sure what to do financially right now or if it’s worth trying to save up to 100k in 3years.

 

[defaultgateways]

@bentleychris23 The goal of saving is great. But just doing it to save imo isn’t the best.

First you need to be very aware of burnout and try to avoid it. Two jobs will get you there quick.

Parking those savings in a savings account is not the best use of money. First you need an emergency fund. The rest you need to invest. How you invest is a whole different topic. I would say if you can start a healthy habit of maxing your Roth at an early age retirement you will love yourself.

Past this you probably want the rest in s&p500 fund but that’s not without risk and you should make sure you have a good understanding of what you are investing in. That applies to any investments.

So I would do emergency fund and Roth. While you’re doing that really start to educate yourself on investing in general. If it sounds too good to be true that it is. Be cautious and take your time.

 

[bentleychris23]

@defaultgateways I’m working on building up my emergency funds for 6 months. I’m also learning about stocks but having trouble understanding more advanced stuff and know what to buy and what not I know you can easily lose your money from stocks if your not careful.

 

[defaultgateways]

@bentleychris23 You should not, under any circumstance, be buying individual stocks. Quit even thinking about it right now.

Open a vanguard account and setup 2 accounts. A taxed brokerage account and a Roth retirement account. From there you need to decide what to invest in but for your age and experience it is not single company stocks. Buy s&p500 etfs and don’t think about it.

That is not the best long term advice or investing strategy but if you just did that for 3 years you would be off to a great start.

Money priority is simple. First emergency, second hit the Roth limit, then extra goes into the brokerage

 

[theadorus]

@bentleychris23 It's great to save money, and by saving now, you should have more flexibility in the future - which can make a big difference.

Looking to buy a house in 3 years is a great goal - as long as you don't get too attached to it. There's a lot that can happen in 3 years, and it's okay if your life path changes, and you're not ready for a house that soon.

 

[candytails101]

@bentleychris23 Having 100k is better than not having 100k.

 

[grayleon10]

@bentleychris23 You are definitely on the right track, and thinking the right way. The only thing you MUST do is put away for retirement, also. The biggest mistake young people make is not saving for retirement early. You literally leave millions on the table later for very small sacrifices now.

If your job has a 401k with a match, make sure you get the match.

And, yes, this is money you won’t be able to touch for over 40 years, but trust me, you will be very happy you did it when the time comes.

 

[iamlu05]

@bentleychris23 Well with your math if you save up the math with $2k x 3 years (36 months) = $72k and that is not counting any expenses in your daily life so no unless you have another source of income it’s highly unlikely you’ll get it.

 

[ktulu]

@iamlu05 Your "math" doesn't account for an epic stock market where so many tickers have gone up 30-40% in just four months.