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Oh well i woke up finally at 51 and only have $4200 in my 401k and I owe the IRS over 65k and I owe the student loan people around 45k.
THE GOOD
I make over 120k a year, car is free and my rent is $600 and I have no kids....
My company matches 100% up to 8% with my 401K.
I went with 8% and I only claim one dependent for taxes.
My buddies wife told me i can do it if i get serious, which I have no choice now....
She told me to send my performance bonuses checks straight to the IRS so i don't even see them.
Is there any other advice folks can give me? other than I am a total fool for waiting so long. (:
You need to figure out why you only have $4200 in your retirement fund when you make $120K with such low expenses. It seems you're not paying taxes or repaying student loans.
Yes, you can do it if you get serious! Your total debt (IRS plus student loans) is $110,000. One major item - your rent - is very low. How about other expenditures? Are you wasting money in other areas, such as high-priced meals out at trendy places, etc.? If so, cut back ruthlessly in those areas and pay as much as you can every single month without exception on your debts.
As for your lack of retirement savings, yes, at the minimum take advantage of the free money (8%) your company offers. It would be foolish not to.
I realize my advice is rather generalized but without knowing more about your spending patterns it's hard to get more specific.
I believe that once you make a serious beginning and start seeing your debt totals being reduced, it will make you feel good and it will be self-reinforcing. Good luck!
Makes $120k a year and lives in a $600/month apartment? Also, looks like he went to school late if he still has $45K in student loan debt at 51. Sounds like a complete mess. Better start socking away every cent you have after paying off your debts. Even then you probably won't be able to retire anytime soon.
Yes, you can do it if you get serious! Your total debt (IRS plus student loans) is $110,000. One major item - your rent - is very low. How about other expenditures? Are you wasting money in other areas, such as high-priced meals out at trendy places, etc.? If so, cut back ruthlessly in those areas and pay as much as you can every single month without exception on your debts.
As for your lack of retirement savings, yes, at the minimum take advantage of the free money (8%) your company offers. It would be foolish not to.
I realize my advice is rather generalized but without knowing more about your spending patterns it's hard to get more specific.
I believe that once you make a serious beginning and start seeing your debt totals being reduced, it will make you feel good and it will be self-reinforcing. Good luck!
Thank you,
All i can say is i lived a life not wanting to deal with stress. I found ways to avoid it and it cost me.
Things I need to stop are:
1. Wasting money on high prices meals outside of the house
2. Poor impulse control, which i am handling with meditation now
3. Netflix, and a bunch of other hits to my bank account that cost under $15 a month, but add up over the year.
4. I think I was dealing with some issues with handling stress and took the easy way out (Luxury travel, partying or anything to numb myself into not dealing with reality). So now I am awake and trying to take control of my life.
5. Yes i do owe the IRS and will be contacting them soon, this is the reason I posted on here. I was worried that now i have to pay them off and student loans and save for retirement. It can push one back into the darkness due to the stress. But I am facing it now, before its too late.
You need to figure out why you only have $4200 in your retirement fund when you make $120K with such low expenses. It seems you're not paying taxes or repaying student loans.
So what are you spending all that money on?
I lived like everyday was my last day. Lived in Australia for 5 years and traveled the world. Always had good jobs and just didn't deal with reality.
But TODAY, I set up my 401K to take out 8% up front from my pay check and additional bonuses will be sent straight to the IRS.
I probably suffered a bit of depression from time to time as well. But that is an excuse, because i had really good jobs and have a really good one now. I will make more than $120 this year for sure and I am not married, no kids, have a company car, the works. I am here to get advice and implement asap.
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