r/povertyfinance • u/k1ranell • 21h ago
Saved my first $5k at 26 pls clap 🥹 Success/Cheers
I also have some $820 in acorns and <$1500 in a rollover IRA I have yet to move to a ROTH but putting it off for tax/wuss reasons. However, I have $772 in CC debt. But a win is a win, I can pay it off with time 😁
Gonna try to save $10k next year
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u/newtownkid 21h ago
Nice! At 26 I think I had like 300 bucks to my name.
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u/babbols 18h ago
That's fucking real tho. I had less than that when I was your age, four years later I have double of what you have now. Let's keep it going! Progress is progress.
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u/newtownkid 18h ago
Oh yea, just keep your head down and keep working. I'm in a great place now. But it's been 10 years.
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u/K__Geedorah 15h ago
Turning 30 in a few months. Got $100 is savings. Life is goooooooood. Who needs retirement?
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u/k1ranell 21h ago
Been able to save since I live with my bf's family and help contribute towards the mortgage, I pay $480 total, including utilities. They are also kind enough to cook for everyone and I help contribute towards the grocery bill and try to show my appreciation by deep cleaning whenever I can.
We are going to move out soon since my bf works maintenance at an apartment which allows him 40% off the rent. I have to go to school for cosmetology in the fall so I may not be able to work full time as I do now, so I'm trying to save as much as possible.
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u/ActionDirect6388 21h ago
hell yeah, I'm happy for you. Wish you the best in the future from here on out!
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u/Minute-Brush8563 20h ago
take advantage of living with his family. My girlfriend and I are living with her grandparents. I pay all of our bills and I try to get her to save her paychecks.
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u/PeaValue 18h ago
1) Are you still getting 4.25% on your savings? (If so, pls pm the name of bank, lol).
2) If you're paying more than 4.25% interest on your CC debt then you're losing money and you should pay off the CC with your savings like yesterday.
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u/joeythurston30 18h ago
bank is wealthfront was 5% for me when i used it
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u/amethyst_dep 17h ago
As interest rates have been cut this year, Wealthfront apy has been reduced twice. It currently sits at 4.25% and will likely see another reduction when the Fed cuts rates again.
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u/freddie2ndplanet 15h ago
you’ll only get these rates with subpar internet banks that offer no services. not worth putting your money in there for 0.5% more esp with relatively small balances
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u/Alone_Seaweed_9768 18h ago
Girl, scrap that cosmotology degree and go for radiology or sonography. It’s just not worth it.
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u/Reallydntgivafuk 18h ago
Has to be said.............................no health insurance or retirement. Low pay. To me it sounds like you're more then smart enough for pretty much anything. One day I asked the Costco pharmacy tech what he was making...............$30+ an hour , trained on the job, good health insurance, and no Sundays.
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u/Spagh3ttiTime 16h ago
Underrated comment. Also amazing options provided. The flexibility that comes with imaging techs plus the benefits and ability to find a job in multiple areas you may consider moving to is a huge plus.
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u/LukeingUp 12h ago
Been grinding away working overnights at the hospital the past 5 years, just signed for a new job right before Christmas for 90k a year. Please OP, at least consider rad tech or sonography. Best decision I've made ever was becoming a CT tech.
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u/Necessary-Depth9158 16h ago
Even phlebotomy can get you a foot into the medical field. You can move up from the inside. Unless you're going to be a salon manager or owner, it's a J.O.B. -Just Over Broke.
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u/Geistalker 17h ago
if the living situation is tenable I would highly suggest utilizing it for now instead of trying to move out. buts that's just my opinion. if the living situation is untenable then obviously try to move.
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u/garden_speech 18h ago
good job! $5,000 in liquid cash savings at age 26 is definitely not poverty lol. you're not rich, but you're not poor!
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u/Charming_General_868 20h ago
Make sure you pay off that CC debt before you have to pay interest. But good job. $5k is wayyyy more than the average person.
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u/fresco_leche 19h ago
Is it really?
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u/Firm-Contract-5940 19h ago
the source is my ass, but i’d think the “average” savings number is going to be higher than what the average american has because the vast disparity of wealth, and savings. most people i know (aged 18-35) have no more than a paycheck in savings, if that.
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u/resarfc 18h ago
The median savings balance for Americans was $8,000 (2022) according to the Federal Reserve's Survey of Consumer Finances. The average was $62,410 - but as you say the difference between the median and average savings is because of massive wealth inequality.
Basically $8,000 is the point at which half of Americans have more savings and half have less.
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u/Nice-Adhesiveness986 19h ago
This puts OP in the 27th percentile but if they keep saving $10,000 a year from now on like they are planning to they will be above average in just 3 years!
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u/AP_in_Indy 16h ago
My friggen fuck Batman.
Seeing those jumps between every 25th percentile is insane.
$11k, to $200k, to $500k, to $2.5 MIL.
Sheesh every tier up really is that much richer. We live in a society. Feels weird that the lower tier really is THAT poor, and the tier above is me is THAT rich. I can't think of how this is possible except for a small % of people in very high-demand, tech jobs or who inherited the wealth.
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u/91271 21h ago
Is there a reason you’re carrying a $772 CC balance? You should never carry a balance if you’re not having 0% APR.
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u/k1ranell 21h ago
Emergency cat surgery due to blockage (CareCredit) and Christmas (Capital One). I've decided that this year is the last Christmas I'll be spending lots of money on gifts. I have 5 younger siblings, so if I feel generous, we'll all draw names out of a hat lol
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u/m00ndr0pp3d 20h ago
Why not use the 5k to pay that off?
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u/k1ranell 20h ago
Good idea, this is also the first month I got the Capital One so I may as well pay that off before the interest hits
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u/m00ndr0pp3d 20h ago
Yeah, you have enough to cover it and it will save you interest
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u/Gaitville 16h ago
Yep credit card should always be the first debt one pays off (unless they have like utility debt that’ll get shut off or housing payments they’ll be kicked out of). Credit card interest is like the highest interest out there besides payday loans.
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u/Pyro_raptor841 18h ago
Seriously, pay that shit off.
There are many reasons to do so, your credit score (ie chances of getting a mortgage) is the least among them.
The other reason is the ~28% average interest rate, worse than literally any loan you could get except pawn shops and loan sharks.
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u/Foreign_Sky_5441 18h ago
Not just might as well, rather, absolutely should. Literally nothing dumber than frivolous CC debt (not that your cat surgery is frivolous, but you now have the means to pay for it, so you should pay for it).
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u/BeBopNoseRing 19h ago
I'd suggest using the Acorns to pay it off, leave the more liquid savings for emergencies. And then start reinvesting with Acorns if you want after the CC debt is wiped.
Also, in case you weren't aware, you can request a "hardship" account from Acorns instead of the default one. It will remove some functionality like the "Later" accounts and some other things, but the basic account remains and it costs $1/mo instead of $3.
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u/Skylon1 19h ago
I can’t speak for OP but I usually have around 500-1000$ on my card that I make payments on monthly to avoid interest. For me I just like having a clean number in my savings, so rather than use my $5000 as long as I’m not paying interest on the credit card amount I don’t dip into savings.
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u/ForzaShadow 19h ago
Yes, I am the same way, it’s literally beneficial to use your credit card for every purchase you make as long as those purchases are needs and not wants. If you pay it off in full each month there’s no harm done.
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u/Academic_Cabinet_994 19h ago
If you pay it off in full each month there’s no harm done.
You also want your utilization below 30% typically, otherwise it can negatively affect your credit.
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u/GrandmaOatmeals 18h ago
This is sort of but not fully true, and the creditcards subreddit has a whole sticky over this myth.
Basically utilization has no memory. So if you have 99% utilization every month, and then you go down to 1% utilization in the month you apply for new credit, you'll have the exact same odds of acceptance as if you have 1% utilization all the time.
There's no tangible benefit to always keeping your utilization below a threshold, only on the months you need new credit.
This is different from payment history, where if you have a late payment, that is gonna hurt your score for 7 years to come.
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u/NarrowMonth8202 19h ago
Make payments on monthly. Do you mean you pay off the statement balance each month in full otherwise how are you not paying interest (aside from a zero apr card).
If you have the cash to there is no reason not to pay off the full statement balance each month.
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u/TiredOfRatRacing 20h ago
Stay consistent with how you save. Generosity is nice. But if you have savings goals, stick to them. If you can, plan ahead to set aside specific amounts to go towards a "fun" or "gift" fund.
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u/Heroinkirby 19h ago
I feel that. 30 year old me is still paying for my for 20s me's mistakes
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u/dgafhomie383 19h ago
Awesome! Always celebrate the milestones - they drive you. I still remember my milestone - first $100 paycheck (very young) first $1,000 save, etc all the way up to my goal of being a self made millionaire. Reach a goal that is obtainable, make it , then set another one. Well done! Money might not buy you happiness, but it does buy you security, peace of mind and my favorite - options. I always swore I would never let $ keep me at a job I hate and I haven't. $ in the bank gives you space to make those decisions. Keep it up!
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u/Mocker-Nicholas 20h ago
Hey man. At 26 I was fresh out of rehab for the second time, and had just ended a 5 year relationship. At 31, I have a house, a spouse, 130K in retirement accounts, a kid on the way, a good career, and relatively good physical health. 5K savings at 26 puts you well on your way to the middle or upper middle class! Keep moving, and keep improving!
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u/SenyorHefe 21h ago
Strong Work! All the blind sacrifices only you've seen/know about will make your future less stressful..
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u/sunflowerskin 20h ago
Inspirational!! I’m the same age and hoping to be where you are by the end of 2025!
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u/InevitableGas6398 19h ago
Great job, dude(tte)! 32 and am not far behind after a decade of not saving a penny. Every little bit counts
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u/JuicePowerful679 20h ago
Bravo/a young person, when you have another $5,000 saved open yourself a Roth IRA. Protect your hard work and then start borrowing from yourself instead of the CC companies.
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u/Opposite-Bother8734 21h ago
What HYSA are you using?
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u/k1ranell 20h ago
Wealthfront! :)
Before the fed lowered the interest rate, it used to be like 5%. It was pretty sweet. But now it's 4.25%
You get a higher interest rate for 3 months if you use a referral code. I can find mine if you're interested
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u/Advisor_Brilliant 19h ago
Hi! Would you by chance be interested in sharing your referral code with me?
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u/solerex 17h ago
careful with wealthfront. Not an actual bank and your money is not covered while in transit between banks.
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u/amatarumrei 20h ago
Well done! Now that you’ve built up the habit, I’m confident you’ll hit the 10K goal you have for next year too. You got this!
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u/Mrepman81 20h ago
When I was saving for the first time, I found the first $5,000 was the most difficult. Good work!
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u/SleepAffectionate268 20h ago
congrats fill up a safety net of 6 months of living cost and then start with stocks also don't forget the fun in between
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u/QueenEris 20h ago
I was 40 when I got there, you beat me by 14 years! Well done you, its a good feeling isn't it?
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u/Any-External-6221 19h ago
I am clapping because I’m 58 years old and if I had started with $5K at 26 and just kept building on that I wouldn’t be rationing my pennies to buy cat food.
So 👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽
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u/Spiritual_Size_8548 18h ago
Well done. This is only the beginning. Youre first six figures is the best when its just sitting there.
I vommited the day i made it, i also vommited on the day i passed my driving test.
I truly became a sole entity on that day.
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u/kerfuffle_fwump 20h ago
You are amazing!!!!
I am so happy for you!
What do you think was the biggest factor in achieving this goal?
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u/k1ranell 20h ago
Thank you! 😊
Fortunate living situations. Prior to living with my bf's family, I used to live with roommates and one of their mom's owned the house so the rate was really low. I payed $400 for rent for a single bedroom for 2 years and utilities were like over $100, I think.
Last year, I saved $3k at the end of the year. Before that year, I actually was never consistent with saving, I've been working since I was 17 so I was thinking that I should be doing better
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u/Little_Bishop1 21h ago
Now. It’s matter of how much you’re putting into it monthly. Figure that out and then you can be consistent in growing it
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u/solosscents_ 20h ago
Good shit. I made 5k in one summer when I was 19, put it into stocks options when right before the Ukraine shit happened and got fucked. Everyone’s roads are different so keep doing your thang!
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u/Particular-Elk-3923 20h ago
You have made many good and difficult decisions to get here. This Dad is proud of you!
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u/TheExistential_Bread 20h ago
Common everybody give a lil clap. https://youtu.be/Mfnfmez8LZc?si=lKE9z8qc-vV8D2a5
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u/CompetitiveTangelo23 20h ago
Excellent work. Even your credit card debt is understandable. I have a cat in surgery at this moment, having a tooth pulled and he was a stray lol.
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u/k1ranell 20h ago
Best wishes for your cat 🥺🥰🥰
The carecredit debt was originally $950 or something, had to use $750 of my savings for the emergency surgery deposit not to mention a few hundred for follow up vet appointments
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u/CompetitiveTangelo23 20h ago edited 19h ago
Thank you.They can be expensive. But they are so worth it. Hope yours stays healthy. Last week his first ever (as far as we know) Vet visit complete exam and all shots $598. Today Two extractions, teeth cleaning $1600 est. will find out when we pick him up in a couple of hours. Still an investment up front will hopefully save a lot in the future.
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u/Brilliant-Cupcake278 20h ago
This is wonderful!! Congrats to you and wishing you a great financial journey 🥰
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u/EternalFlame117343 20h ago
Damn, this is like 15 months of minimum income in my country :') it's a lot of money
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u/PM_ME_Happy_Thinks 20h ago
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u/Vampiric2010 20h ago
Woo good job! Now that you are starting to save money, avoid those bitcoin cultists like the plague.
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u/Long_Performance_636 20h ago
I love WealthFront. Good going on that goal! I used to have an Automated Investing Portfolio (risk lvl 8) and I loved it. Worth looking into, or even the Bond Ladder.
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u/Snoo-35252 19h ago
This is not poverty finance, you are on your way to regular finance! Congratulations!
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u/Magic_Forest_Cat 19h ago
Amazing! Claps
Also, I'm life, here's a 6k emergency for you 😊
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u/BohortCestSaCousine 19h ago
Wow well done. Well done. I could only save ten times less at your age (UK)
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u/EconomistDazzling112 19h ago
I am so proud of you!!! This is huge !! Celebrate if you’re able to! I know you want to save but you also deserve to celebrate with all of your hard work🖤 that’s a the whole reason to work hard!
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u/Cautious-Tea-4883 19h ago
congrats. i wish i could have that much saved. hoping to follow in ya footsteps someday next year 🙌🏽
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u/dumdidlydo 19h ago
OP, I don't know you and you don't know me, but I'm proud of you. Saving money is hard these days. Keep up the good work!
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u/ReconditeMe 19h ago
Most people's goal is $1,000,000 though, any goal is good!
;)
Keep it up!
Compounding interest is your greatest asset.
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u/Heroinkirby 19h ago
Congrats my fellow poor☺️I'm in a similar boat. Feels good to have savings, even if it's only 4 digits. I just hit the (very low) five digit club. We may not be able to afford a house, but atleast an emergency wouldn't totally screw us. Well, depends on the emergency
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u/ReconditeMe 19h ago
At 27 years old I woke up one day and thought...'I'm going to invest in a 401k!' It was wild!
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u/sendmeadoggo 19h ago
You dont need to be focusing on a Roth just yet. Pay off the CC debt and never carry a balance again. Continue building a 3-6 month emergency fund and then look into the Roth.
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u/Heroinkirby 19h ago
God damn that's a decent amount of interest on 5k. I get like a buck or two
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u/LordMoose99 19h ago
Woot woot congrats and here's to 10k next year!
Though recommendation, unless the interest is low pay off the CC. But still good for you!
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u/Ill_Ad5893 19h ago
With the cost of things today. It may not seem like much to some, but others like you and me. It's a good chunk of change to get saved up.
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u/Xer087 19h ago
Hello stranger, you dont know me, but I am VERY proud of you. When you're scraping 5k in savings is a massive accomplishment. Well done!
at 26 I was blowing 100% of my paycheck on drinking on the weekends with my buddies, and living off chow hall slop. You're way ahead of me at that age.
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u/dont-be-a-narc-bro 19h ago
Any bit of savings is significant no matter the number. Excellent work!
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1.8k
u/Best-Experience407 21h ago
Congratulations man