Creating a budget and keeping better tabs on our expenses is high priority for us at the moment. I like the idea of empower to keep track of day to day spending. I'm more concerned with budget/spending/savings rate than tracking net worth as that can be found on our retirement account apps. As someone who is married does a joint checking account where paychecks of you/your spouse go into the same account and then divvy out household expenses per month. Then excess cash goes into IRA, and savings accounts work best in your experience? Or separate accounts. We currently have separate accounts but certainly okay with going the joint route. As this would make things simpler to track.Congrats on getting married. Here are a few of my thoughts, in no particular order, as someone around your age that also got married last year.
1. I use Empower (formerly Personal Capital) for aggregating all of my accounts and transactions. At the end of each month I check all of my transactions, and I record my spending in each budget category in Excel/Google Sheets. I really suggest making a budget so you can know how much you are spending (perhaps you are spending more than you think in some expendable areas) as well as saving (helps determine how long it will take to save for future goals).
To keep it (somewhat) simple you prefer the strategy of 100% VT in roth IRA account? That gives exposure to total US and global markets without the need of asset reallocation. I know there is a lot of food for thought and difference of opinion on this topic. At the moment I'm too uneducated and worried to make the wrong move.2. Personally I think 20% international is too low. We can see that a decent chunk of the growth in US stocks over the past decade was simply earnings multiple expansion (P/E went up, because stock price went up faster than earnings). US is already >60% of the world market, and it doesn't really make sense for the US market to continue eating the world without the earnings growth to back it. I'd recommend world market cap weight (40%) international. A lot of the US exceptionalism posters here are older, they grew up in a different generation/world, and they already "got theirs" as far as growing their portfolio for retirement.
We are DEFINITELY fortunate with current housing expense and would be in a tight situation if things changed. Thus the focus on budget and savings rate to prepare for any future changes.3. As far as goal prioritization I'd implore you to check your rental against market rates. $1,200 rent is unfathomable to me up here in Massachusetts. If your landlord sold the house and you had to move, would you be able to get a similar deal? If your rent is a unicorn in the market I would prioritize saving for a house (after paying off the CC as others recommended).
Thanks Seltz!
Statistics: Posted by DunderMufflin — Tue Jul 30, 2024 1:43 am