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28 years old and figuring out finances

Jcass91
New Member

28 years old and figuring out finances

Just turned 28 and trying to figure out my main finances. Should be getting back around 3k in tax refund and will use it to pay off my $600 on discover and bring down a 0% card to $500 remaining. The rest of the money I will use to add to my roth ira and savings account with ally. Where should I be financially as far as savings and roth for my age. Have 4 months till my car payment is done and that's $300 that will be freed up as well.
Message 1 of 9
8 REPLIES 8
Jcass91
New Member

Re: 28 years old and figuring out finances

Thanks for the reply. I should add I have paid about 10k into my state pension and purchased a house Aug of 2017. I've been contributing to my roth since age 23 but unable to max it every year.
Message 2 of 9
xaximus
Valued Contributor

Re: 28 years old and figuring out finances

Are you putting in the max contribution you can every paycheck? That is important and at 28, I would bump it up as much as possible. Also, I wouldn't worry about where others are at any age. Everyone's situation is different. Be happy and proud of where you are.


Scores - All bureaus 756 +
TCL - Est. $275K
Message 3 of 9
Revelate
Moderator Emeritus

Re: 28 years old and figuring out finances

Heck by all the published data I'm behind too at 43 and I think by any rational measure I'm doing OK.  Agreed with the sentiment don't worry about where others are, just make the best decisions you can for where you are... and the house is huge, jeez my condo when looked at from an investment perspective (downpayment plus all insurance and interest paid though sales commission will come out of that too) increased by 25% for an annualized rate over the last 3.5 years: fixing that housing cost is a massive win to say nothing of potential appreciation.

 

I think the big thing to remember is when it comes to retirement planning (however you define it), is contributions made early >> contributions made late.

 

My suggestions would be try to max out your pension and your Roth IRA every year as a savings goal, but really sit down and do the analysis to see where the money goes... it's hard to say if there will be more or less handouts when I'm retired, but I'm not betting on social security to come and save me TBH and as such I'm just looking at maximizing my savings over the next few years.

 

To that point over the last week I've been considering moving back to Texas and picking up some small house near an acceptable college and convert to corp-to-corp on my current gig, perhaps sooner rather than later.

 

Ultimately it's never to early to get your financial poop in a group.

 

 

 

 




        
Message 4 of 9
CreditInspired
Super Contributor

Re: 28 years old and figuring out finances

Hi OP and welcome to MyFICO

First, I want to commend you on where you are at this stage in your life and how you’re looking ahead at 28 years old. Bravo.

Seriously, there’s a lot of people way older than you who wish they were in your shoes. Personally, and of course I don’t suggest doing this, but I just flew by the seat of my pants and lucky for me, things fell into place financially. But LUCK it was 😊.

So first, don’t compare yourself with others. But definitely keep asking others for guidance to lead you in the right direction. You’re definitely on the right track and again I applaud you.

DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 5 of 9
OmarR
Established Contributor

Re: 28 years old and figuring out finances

I agree with a lot of suggestions already made. Definitely max out a Roth IRA and max out any employer match at the very minimum. If I was thinking this way at 28 years of age, I would definitely be more ahead of the game than I am now.

    EQ=850        TU=837         EX=837      INQ=0/0/0     UTIL=$1        AZEO


Message 6 of 9
SouthJamaica
Super Contributor

Re: 28 years old and figuring out finances


@Jcass91 wrote:
Just turned 28 and trying to figure out my main finances. Should be getting back around 3k in tax refund and will use it to pay off my $600 on discover and bring down a 0% card to $500 remaining. The rest of the money I will use to add to my roth ira and savings account with ally. Where should I be financially as far as savings and roth for my age. Have 4 months till my car payment is done and that's $300 that will be freed up as well.

There's no one who could answer that question. In this society, most of us are but one misfortune away from catastrophe. Where you "should be financially" is where we all should be: secure and safe.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 7 of 9
Save-n-Invest
Frequent Contributor

Re: 28 years old and figuring out finances

OP,  good on you for being financially aware. Keep doing what you are doing. I don't know were you should be at this time but you are doing well. Starting at a younger age, 23 is an advntage as funds have many years to grow before retirement. 

 

Good luck!

Message 8 of 9
Jcass91
New Member

Re: 28 years old and figuring out finances

Thank you all for the replies. Starting a new job soon with with about a 12k salary bump and finishing my car payment soon should help my savings and Roth exponentially. I appreciate all the feedback and will take it all into consideration.
Message 9 of 9
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