How Much Are We Saving For Retirement? | Financial Independence Retire Early

Updated : Sep 18, 2019 in Articles

How Much Are We Saving For Retirement? | Financial Independence Retire Early


hi friends we’re gonna freedom in a
budget I’m Kelly and I’m super excited for today’s video I’m in teaming up with
Brad from the Finn mindset we’re gonna talk about how much we are saving for
retirement how much we’re putting in each month each year all of that all of
the nitty-gritty details our retirement plans our thoughts and retirement all of
that so that is something that interests you is stay tuned if you are new to
freedom and a budget I’m Kelly my channel is all about living life well on
a budget and a budget doesn’t have to be constricting and you can’t do anything
no a budget gives you freedom because you permission to spend it gives you
permission to do the things in life that you want to do my husband Jamie and I
are debt-free we paid off all of my student loans
we cash flow my car cash flowed multiple cruises that we are I think in Alaska
when you guys are seeing this right now on an Alaskan cruise and we just bought
our first home which is so exciting and we really worked hard and saving for
that and all of that so that is some really really fun things about me and my
channel and I post videos three to five times a week so please subscribe to my
tune I would love to have you join the family if you have not already please go
check out Brad it from the Finn mindset his info will be down below in the
description box he is awesome he’s a really good friend of mine I cannot wait
to meet him at Finn Khan in a couple weeks and his channel is awesome it is
all about investing and he’s gonna be paying off to his debt in like two
months which is amazing and he is really big in the fire movement and he is a
wealth of the knowledge and motivation he is so inspiring and a really really
great guy so go check him out let him know that Kelly from freedom in a budget
sent you alright before I get into everything I have to introduce my main
man over here mr. Piper he is the mascot of this show I do have
Skyler back there but she is sleeping she’s always sleeping but Piper will
come and go into the video so if you see him in the background cause him chaos
just just say hi to him he’s awesome so I want to say that our investment
strategy has really changed over the past couple years as my husband Jamie
and I have really learned about investing it was something now
very we don’t know what we’re doing what is this whole stock market thing I don’t
understand and it was just scary to us now I will say that we did receive some
money after my grandmother passed away because my mom had previously passed
away so we received my sister and I split her share of the the money that my
grandmother left so when we received that money we did two things with it we
paid off all of the rest of my student loans with it and then number two we
hired someone a financial planner to invest it into the stock market for us
because at that time this was several years ago before I started learning
about investing and everything and I think it was even know we did have the
channel then but it was very new into my financial literacy journey and so we
paid someone to invest it into the market for us and you know we pay them
the 1% to do that for us so we do have about 50 thousand dollars in that
account with them and you know they give us updates and everything like that but
ever since then we have done all of the other investing on ourselves and
original plan was to continue putting money into that account and you know
growing it with them but now that we are you know more knowledge about this then
we are doing it more ourselves now and now that the house has done all of that
we’re going to be starting to do even more research especially following the
fire movement ways and if you don’t know fire and if you’re confused about fire
and Dave Ramsey and everything I did a video where I teamed up with Jay Jay
Buckner where I compared the fire movement to Dave Ramsey and kind of
broke it down all of what one believes what the other believes all of that will
have that link down below for you guys and then at the end of the video as well
so stay tuned to the end for that and you can just watch it right from there
super easy but with the fire movement ways and just a way that they do you
know investing with index funds and different things like that and you know
dividends and all of that we are learning a lot I will say that it is
kind of intimidating I’ll be honest with you guys it’s a little intimidating to
be a female on the space talking about investing a lot of you
know the big people that you see on YouTube are guys and so I don’t know
it’s want to be sexist but it is a little intimidating and my biggest fear
of you know talking about investing is I don’t want to steer you guys wrong when
I would talk about paying off debt it was very less pay off debt like get it
done you know kick it to the curb can’t really screw you over but with investing
I could give you the wrong information and then you are thousands and thousands
of dollars in the hole so I I want to make sure that I’m giving you really
good solid information before I talk more about investing on the channel so
more investing in content is to come but please just bear with me I’m learning
I’m growing I am learning new things about investing every single day but
bear with me so with that being said we do have several investment accounts of
what we’re doing with our investments and I’m gonna go through all of those
with you so the first one is our IRAs we max out our IRAs every single year which
is six thousand each or twelve thousand dollars which is super easy so it’s a
thousand dollars every single month that we put towards our IR s we have maxed
them out the last three years which we are very proud about of doing that now
you don’t have to maximize full you don’t have to pay them out in full if
you want to put $50 a month toward your IRA that is totally okay and totally
doable so get your IRA set up they’re so important start now start now if you
don’t have your IRA set up please go do them next up is 401 K so I’m gonna put
some information on the screen for you guys just kind of breakdown for and k
and what that means now Brad is in a different situation because he is a
teacher so I’m going to be talking about 401 k’s and he’s let me talk about his
school or retirement plan so it’s gonna be cool that you’re gonna get a
different perspective from brad in his video so for for our own case here’s
what you need to know anyone age 50 or over is eligible for an additional
catch-up contribution of $6,000 and employers can contribute to but there’s
a 56 thousand dollar limit and combined employer in employee contributions 62
thousand if eligible for a catch-up contribution so I know it sounds like a
lot but it’s really not super simple so Jamie and I both contribute to our 401
we contribute different amounts just because of the way that our money is set
up but Jamie contributes six percent which is about four hundred dollars a
month and I contribute 10% which is about five hundred dollars a month
my company matches up to when that was seven percent it was up to six percent
but a 50 percent match which is really like three percent but they just upped
it to seven percent coming January first so that’s really exciting so coming to
new year it’ll be up to 7 percent at 50% match which is really three and a half
percent now I do get a ton of questions on my channel about the Dave Ramsey 15%
rule and do you count that employer match in your 15% I personally think no
so if you are contributing you know 10% 5% whatever it is don’t include the 3%
company match that is just icing on the cake only count the percent of your
income that you yourself are investing not the matches so I hope that makes
sense next up is Robin Hood Robin and it is a
really fun app that I just started using if you guys don’t know I do have a video
down below in the description on a beginner’s guide to Robin Hood so if
you’re new to investing new to Robin Hood it breaks it down I walk through I
have a screen share of me setting up the account me buying stocks me buying I
think I’d about one dividend on it and really going through that whole process
so go check that video out down below in the description and it would be really
helpful also if you do want to sign up for Robin Hood I do have a referral link
down below as well in the description right with that video where you get a
free stock for signing up and so do i so it’s a win-win for both of us you get a
free stock I get a free stock and we both win typically when I do get those
stocks that I sell them back and then I buy something bigger with them but they
are exciting we are not currently adding to my Robin Hood portfolio now I do want
to start doing dividends and doing more with Robin Hood but right now we haven’t
for the past month or so but we do currently have three hundred fifty nine
dollars in our Robin Hood account alright and lastly is our Vanguard
account and that is the account that I talked about previously with the money
that we received from the inheritance we put in fifty thousand dollars currently
it is at fifty two thousand dollars so we did get two percent two
$2,000 gain on it but we are not contributing to that currently so you
guys want to know how much we have total and how much it breaks down to our
income so we currently contribute about 18% of our income overall and we have a
hundred and eleven thousand dollars in our retirement funds that does not
include our liquid cash or anything like that not on our net worth but we do have
11th out 11 111 thousand dollars in our retirement and we’re contributing about
$1,900 a month on average to our retirement which is awesome so we do
want to increase our retirement especially now that the house savings is
over we were saving between three and six thousand dollars a month at four i
down payment so now that that is over with we want to start you know putting
away more towards retirement after we kind of finish furnishing the house and
doing all the upgrades the house needs some work we have to buy a dining-room
table set we have to buy you know different things like that so the next
like month or two it’s gonna be you know a lot more house repairs but we do want
to start you know contributing more to our retirement our goal is to get up to
thirty percent of our income into retirement for the next couple years so
that is our goal but also with that being said we do want to start putting
extra towards our mortgage especially because our mortgage is brand-new and it
is heavy on the front end with interest so I just made our first mortgage
payment isn’t due until September first I just made a little extra principle
only payment of two hundred dollars yesterday and I just checked my account
this morning and because of that $200 that we put towards principal only it
saved us 438 dollars in interest which is crazy and so that leg gave me like a
high like oh my gosh we gotta put money we got to put money especially in the
beginning because it’s so interest heavy and I did the math and if we put $1,000
a month towards our mortgage extra which is totally doable in our budget we can
take 18 years off of our mortgage which is crazy crazy crazy and I have a very
you know it’s hard for me of deciding if you know we want to pay off the mortgage
early if we to put that money towards vesting like
my gut tells me to pay off the mortgage early it’s dead it’s dead
but our mortgage rate is 3.875 which is a really good rate interest rate for a
mortgage and we could potentially beginning we would be getting a lot
higher return on our money in investments and dividends and different
things like that so it’s hard for me it’s really really his heart so Jamie
and I really have to sit down and talk of you know maybe splitting it 50/50 so
say we have an extra you know fifteen hundred dollars at the end of the month
that we have to play with do we put half towards extra mortgage payments and half
towards investments what do we what are we gonna be doing with that and kind of
splitting it so I do want to grow our future but at the same time I’m gonna
get that mortgage out of there especially in the beginning I want to
make as many extra payments to combat that interest and it was crazy I was
looking at Emmitt ization schedule for our mortgage and it goes it starts at
like a thousand dollars a month in interest and then $500 towards principal
and then it goes up in principal a dollar every single month so it’s like
500 501 502 each month and then it goes down and then the last month you’re
paying like barely any interest so you if you’re gonna pay extra towards your
mortgage you won’t do it in the front end most people try and pay it off at
the end just to get rid of it which is ya you that’s great to do but if you can
make extra payments to him in the beginning that that really is gonna be
the biggest bang for your buck and save you the most money so I just went on a
really big rant right there I’m so sorry but if you made it to the end of the
video please leave the secret emoji don’t forget to go check out Brad’s
channel he has awesome let him know that I sent you over at the fin mindset here
my social media handles and blog I would love for you to follow me go check on my
blog I have a lot of great articles on there and subscribe if you’re new so
please subscribe and join the family all right guys go check out the Dave Ramsey
vs. fire video you

45 Comments

  • Awesome video Kelly. Totally understand the wariness around doing videos about investing when you are still learning yourself. Hope you and Jayme enjoy the Alaskan cruise. ๐Ÿ“ˆ (couldn't find the secret emoji on android but I found similar)

  • ๐Ÿ“ˆ yโ€™all are doing great! Great content! Iโ€™m investing some but I will do a lot more once Iโ€™m out of debt. Iโ€™m doing my 401K match, fully funding HSA and participating in my companyโ€™s ESPP.

  • ๐Ÿ”ฅThe Finn Mindset: https://www.youtube.com/channel/UCVo7LwuxomC4k5yHEHlVdJA

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  • Amazing video Kelly! You are doing so awesome! I am so lucky to have a friend and mentor like you here on YouTube! I look forward to continuing to watch you succeed!

  • This was a really good run down Kelly! ๐Ÿ‘I agree dividends are the way to go. The market is too turbulent right now so dividend money is a great place to invest in right now.

  • This was super motivating. Probably my favorite Kelly video (though I haven't watched them all yet.). I had no idea how much interest that extra principle payments would save. Holy cow!

  • It also depends on the size of your mortgage, even though its low interest, you might still be paying a lot of interest over the life of the loan because of the size of the mortgage debt itself. And (if) your mortgage is bigger than investments for a while you could still be paying more into interest than what you could get in returns, if that makes sense. but then you could catch up on investments too…it all depends.. But in your case, im sure you will be fine either way ๐Ÿ™‚

  • ๐Ÿ“ˆ Hey! I used the inheritance I got all towards principal on the mortgage. Really smart to make the early payments. Now almost 2/3 of my payment is for principal instead if interest and I should only have about 6 years left to pay the house off! Thanks for sharing

  • After reading Rich Dad, Poor Dad – I think he would say that if youโ€™re earning more with investing % rate than your mortgage % rate, to invest and then use the money you make from investing to make extra payments on the house. I know thatโ€™s not the DR way, but it kinda makes sense!

  • great video Kelly…besides my retirement savings I've been working on my mortgage..I took out a 30 year loan..on year 5 with less than 20% left to go..those extra principal payments have saved me a lot on interest! Kelley

  • I love seeing other women talking about investing! ๐Ÿ“ˆ The extra mortgage payment decision is definitely a hard one. On one hand you could get a bigger return on your money doing something else with it, but at the same time owning your house free and clear would give you a lot of peace of mind!

  • Good Video ๐Ÿ“ˆ – It's interesting to discuss "how much one is investing" and storing away. It's a good video idea for sure. There are a few female YouTubers I follow now who are in the (finance niche).
    Check them out;
    Susan Daley – https://www.youtube.com/channel/UCYxXNXA0npMEZ7xY74Bq9KA

    Arvabelle – https://www.youtube.com/channel/UC0QV_tRGAaevfQx6KGwJ9NA
    They both do a mix of budgeting / investing / saving videos.

  • Vanguard's low expense ratio is great. I'd do the 50/50 route for house & investments. It's a win-win no matter what! Watched Brad's, now yours. Great collab!

  • ๐Ÿ“ˆ thank you for this. I made my husband listen to the mortgage payments. We actually do biweekly mortgage payment. I know that helps a little. But I havent done the math.

  • Thanks for sharing, Kelly! What is your asset allocation like in your investment accounts?

    I was very intimidated by investing as well in the beginning. Weโ€™re actually in the middle of a series on investing right now on our channel!

    Hope to meet you at FinCon as well! -Akeiva

  • I love that you too teamed up on this topic. Of course I am trying to learn as much as I can before I am ready to start investing. I hope you are having a blast on your cruise! ๐Ÿ“ˆ

  • Yayyyy more investing videos!!! LOVE seeing more women in this space!๐Ÿ‘๐Ÿป๐Ÿ‘๐Ÿป๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ
    Booooo 1% financial advisor fees!!๐Ÿ˜ฑ๐Ÿ˜ฑ๐Ÿ˜ฑ He/she is robbing yโ€™all! Iโ€™d cut ties if it were me, but you guys do what you like.๐Ÿคท๐Ÿปโ€โ™€๏ธ๐Ÿ“ˆ๐Ÿ“ˆ๐Ÿ“ˆ

  • I love having a female role model within the financial space! I agree it's overwhelming, I'm just learning as me and my husband are currently working on paying off our debt.

  • This is greatness so excited for you saving so much! Yโ€™all are going to retire early for sure.

  • Your game plan keeps getting stronger and stronger! You and Brad are both Awesome and very inspirational! Keep crushing it Kelly!!! ๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ“ˆ

  • Great video. Sticking to a solid budget is something I talk about in my own videos. It is an important first step toward achieving financial freedom. Great job. Youโ€™ve earned a new sub. Iโ€™m looking forward to seeing more of your videos.

  • Youโ€™ll want to get that house paid off๐Ÿ˜‰ thatโ€™s what Dave would say and I agree. Because you are saving well already for retirement. You guys are doing great! ๐Ÿ“ close emoji…lol

  • Do you have any videos on calculating networth like assets vs liabilities trying to decide if i should account for depreciating assets like cars or not

  • Did you catch that guys? She said WE paid off all of MY student loans. Donโ€™t pay off your spouses debt, let them pay it off and keep all accounts separate. I am throwing you pears here, gentlemen. Trust in me.

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