I’m 23 earning $90,000 a year but I feel like I can’t save

A Reddit user is earning $90,000 at just 23 years old. He’s trying to use his money wisely, so he’s investing 15% of his income into his 401(k) account, as well as maxing out on a Roth IRA. Despite the fact that he’s investing much more than most people who are years older than him, he feels like he can’t save enough to get ahead and accomplish his early retirement goals.

So, is the poster on track to financial success, or is he doing something wrong since he feels like he is sacrificing a ton but still not growing his account balance as fast as he’d like?

Investing heavily when you’re young is a good way to set yourself up for success

While the OP said he’s feeling frustrated about his slow progress, many other Reddit users were quick to jump in and reassure him that he is doing great. Between the 401(k) and the Roth, he’s investing above the standard recommended 15% to 20% of income for retirement. 

And, while he does feel like he can’t save and spend as much as he wants, he’s making moves now that are going to set himself up for great financial success later.

The fact is that while $95K is an amazing income for someone who is only 23, the money still only goes so far. By the time he invests, factors in taxes and inflation, and covers the necessities, it’s not surprising that he doesn’t have as much money left over as he wants and is feeling constrained in his finances.

Still, objectively speaking, he is doing well, so he has to focus on changing his mindset most of all. 

How to get comfortable with building wealth over time

While the poster is in a big hurry to invest his way to financial independence, the reality is that getting to a big net worth and acheiving fianncial independence is going to be a process that takes time for almost everyone — except those who get lucky with an inheritance or with another big influx of cash such as from selling acompany they started or earning a ton of stock options from a company and seeing the share price rise dramatically. 

Of course, the more you save and invest, the faster your nest egg will grow. But, because it does take time, you need to try to find a balance. You have to live your life and do some things you enjoy while also investing as much as possible for a rich future. Otherwise, you’ll just end up burning out — and the OP is at huge risk of that happening since he’s already pressuring himself to save so much and feeling stressed about the good progress he’s making.

Ultimately, the best option for the OP and others like him who are struggling is to talk with a financial advisor. A professional can help you make a budget that works for you, with an appropriate amount allocated toward saving to accomplish your big goals, as well as with a plan for how to spend and use your money in a way that brings you the most joy. 

By working with an advisor, you can feel confident that you’re on track for the future you want to create, while also finding a way to enjoy today. 

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