this post was submitted on 20 Jan 2024
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Congratulations!
I went from earning $12 under the table to 6 figures in 5 years. It's a really major change. Once you have a year or two of that, and enough saved to survive basically any adversity, you realize how stressful your life was before.
Some unsolicited advice:
Budget. I've never been good at it, so this is my strategy:
I Keep two months' basic expenses in checking account. Food, gas, rent, phone, internet, insurance, loans.
At the end of the month I transfer the remaining money to 3 accounts: 1/4 to long-term savings (this was initially my 3-month emergency fund, but turned into something more blended with a 3-month reserve). 1/4 to short-term savings (travel, gifts, clothes, fun). 1/2 to investments (stocks, ETFs, etc).To start out, all the money went into the long-term account. Having 3-month's savings is the true key to both feeling safe and avoiding credit card debt.
That's it. Literally. If I transfer less money at the end of the month, I either overspent or had some annual "surprise," like auto registration, Prime bill, etc. If I transfer more, it was a successful month.