Hey everyone, Cody here! Today, I want to take a moment to reflect on my financial journey through my 20s. I’m 28 now, earning around $70,000 annually, and currently living with my parents while renovating my house. Looking back, it’s been a rollercoaster of financial decisions, lessons learned, and goals set for the future.
Early Financial Moves
When I look at the past six years, I realize I could have saved a lot more. With an average annual income of about $55,000 during that time, I made some significant financial moves—some good, some not so much. I bought a piece of property and a trailer, both of which I financed. Recently, I paid off the land, and the trailer will be fully paid off in about six months. These are wins I’m proud of.
However, I also financed a 2019 Toyota RAV4 Hybrid, and I still owe around $13,000 on it. On top of that, I’ve accumulated $6,000 in credit card debt. The good news? I’m finally in a position to start tackling this debt more aggressively, thanks to having more funds available now.
Spending Habits and Lessons Learned
My biggest financial struggle has been my spending habits. I don’t splurge on big, lavish items, but I do have a habit of buying lots of little things that add up over time. Most of it ends up being useless, and I’ve started to realize just how much those small purchases have cost me in the long run.
To curb this, I’ve recently started a new habit: whenever I feel like buying something unnecessary, I put that money into my personal investment account instead. This has been surprisingly fun and rewarding! Over the past month, I’ve made $100 on my investments, and I’ve been diving into research and learning from various subreddits. It’s empowering to see my money grow and work for me.
Building for the Future
Here’s where I stand right now:
- Debt: About $20,000 in total, including my car loan and credit card debt.
- Savings and Investments: $5,000 in two Roth retirement accounts and a personal investment account, plus $1,000 in a savings account.
- Goals: I want to be as financially stable as possible by my 30th birthday. This means paying off most, if not all, of my debt.
One of the biggest milestones I’m looking forward to is having a completely paid-off house at 29 years old. That’s a huge advantage I’m grateful for, and it’s a strong foundation for building my financial future.
Long-Term Aspirations
I’ve been thinking a lot about the future. In my current job, I can retire at 47, but to do that, I need to be financially sound. My ultimate goal is to become a millionaire by that age, which means eliminating all debt and making smart investments along the way.
My girlfriend has been a big inspiration. She’s 22, has a degree in economics, and already owns a rental property. She’s amazing at managing finances, and her success motivates me to keep pushing forward. I’d love to own a rental property someday too, though the risk involved intimidates me. For now, I’m focusing on what I can control and building up my financial confidence.
The Road Ahead
Sometimes, I feel like I’m behind financially for my age. But when I compare my situation to where my parents were at 28, I realize I’m ahead in many ways. The economy may be challenging, but I’m determined to make the most of what I have.
I’ve even thought about learning to code as a side hustle to boost my income. There’s a lot I still want to achieve, and I know it’s going to take hard work, discipline, and time. But I’m ready to take on the challenge.
Thanks for reading about my journey so far. Here’s to making smarter financial choices and working toward a brighter future!
