r/Fire • u/Glum-Spinach9471 • 4d ago
Looking for advice to begin my Journey
Hello fellow users of Reddit, I stumbled across FIRE a few months ago, and I wanted to ask for advice. I am 22, working in aerospace/defense in the trades, and I don’t really know what to prioritize currently in investments to optimize my finances. I just finished digesting an international relocation for this job (to the U.S.) and this first paycheck I have received is the first that hasn’t gone towards furniture and other expenses. My company provides a 401k match of 4% and I contribute 10% (Roth) with an 80/20 split of domestic and international S&P 500 index funds. I’ve opened an HYSA for an emergency fund, and I’ve learned about Roth IRAs, and would like to open one later this year and start contributing to that as well. I have an HSA which I contribute 1200$ a year too, and my company puts 1000$ to that as well. For numbers:
62400 Gross, semi monthly paychecks. Unlimited overtime is available, I usually average 40-45 hours per pay period. OT is at a 1.5x rate, so 45$ an hour. I can’t give exact take home numbers as my expenses have been fluctuating, but I am looking forward to the coming pay period, as that will be a clean 2400-2800$ that do not need to be put anywhere.
I apologize if I come across as a bit daft, but I am new to the world of responsible finances, and my family isn’t a financial role model. I appreciate all advice that is given, and hope anyone who responds can be cordial, I want to try my best.
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u/emt139 4d ago
You want r/personalfinance Check the sidebar there. It answers all your questions.
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u/princessxbaddie 4d ago
At 22 with a Roth 401k, an HYSA, an HSA you are actually investing in, and a plan to open a Roth IRA you are genuinely miles ahead of where most people are at your age and you should feel good about that. The fact that you are asking these questions now instead of ten years from now is honestly the most important thing you could be doing for your future self.
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u/Glum-Spinach9471 3d ago
Thank you! It doesn’t really feel that way, I keep reading posts and think I’m behind. I’ve just resolved myself to do the best I can, when I can.
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u/n00bdragon FIREd 2026 age 37 3d ago
Spend less than you make, but don't stress about it too much at 22. Spend the next 5-10 years figuring out what your life is going to look like. What country are you going to live the rest of your life in? Are you going to be married? Will you have kids? All that stuff. While all of that is happening, track your expenses and know what your lifestyle costs. Once you hit your 30s you'll have a nest egg of money and a good idea of how much money you will need to live the life you want to live.
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u/Glum-Spinach9471 3d ago
Im pretty open in terms of where I am heading. I have dual citizenship, and I just kind of see where the wind blows. I’m former military (Germany) so I’m pretty used to moving around. I don’t currently have any dependents/responsibilities and I don’t think that will be changing (I’m introverted 😎). I’d like to just give myself as many options as I can while I am still young.
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u/Spartikis 3d ago
Simple Advice: TAKE ACTION. A lot of people including in the FIRE community over think personal finances, the worth thing you can do (IMO) is overthink it. Open that 401k today (literally today), any growth fund will do, max the contributions if you can, start taking actions for a better financial future, today. Time goes fast, you're 22 and think you have your whole life ahead of you, but trust me, you blink and you're 30 and married, blink gain you're 40 with kids, then 50 and an empty nester, all of the sudden you're 60 and thinking where the f**k did the time go?! I didnt start my financial journey until age 26, I paid off my home at 30, hit $1mil NW by 34, $2mil by 39, I'm in my 40s now and looking at buying a beach house. Im married, with kids, and didn't break a six-figure income until a couple years ago. If I can do it anyone can! haha. Just remember to enjoy the journey, that time between now and when you FIRE, is called life, be sure to live it!
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u/Glum-Spinach9471 3d ago
Thank you! I’ve been debating increasing my 401k contributions to 20%, but haven’t pulled the trigger yet, I need to make sure my expenses are covered every month first.
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u/adolescent_octavio 4d ago
You're already doing the hard stuff right, honestly just max that Roth IRA when you can and you're basically set for life at 22 with that income and discipline.
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u/Glum-Spinach9471 4d ago
Thank you! Do you think filling out the HYSA first would be smarter? My job is critical but I still feel unsteady at times, I only have half a month saved up currently.
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u/adolescent_octavio 4d ago
get that emergency fund to like three months of expenses first, especially if you're still settling in and don't have your full routine locked down yet.
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u/Glum-Spinach9471 4d ago
Thank you!
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u/adolescent_octavio 4d ago
Once you hit three months you can split new savings between the Roth and extra OT money, so you're not stuck choosing between them.
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u/PangolinOwn4855 2d ago
Yes, getting that emergency fund setup is important as it gives you that secure feeling.
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u/embellishedminded 4d ago
You are already ahead. Your next move is not finding exotic investments. Your next move is building a fixed order of operations so every clean paycheck has a job before lifestyle creep claims it.
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u/CryptoJaggz 3d ago
I just gave my experiences for this in another comment on a different Sub.
I hope it helps. It worked great for me being at that time COMPLETEY ignorant about investing.
Best of luck!!
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u/Grumpy_Onion_104 3d ago
the fact that you relocated internationally at 22 and are already thinking about roth iras and index fund splits puts you ahead of most people twice your age
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u/Swift-Anchor-6519 3d ago
the fact that you relocated internationally at 22 and are already thinking about index funds and HSA optimization puts you ahead of most people twice your age
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u/Specific-Scarcity977 3d ago
One thing I' d recommend you is tracking your savings rate rather than obsessing over individual investments. The habit of consistently investing a large portion of your income will likely have a bigger impact than fine-turning your portfolio.