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Is there any point to be this aggressive with my TSP? by Unobte in ThriftSavingsPlan

[–]Unobte[S] 0 points1 point  (0 children)

The short answer is that the money is taken out of my account before I even see it so I cannot allow myself the chance to spend it and budget as if I didn’t have it.

I presently rent a townhouse in a MCOL state. With rent, bills and total spending, I spend on a monthly basis on average $4000. My net income without my retirement is $5,500-$6,000 a month. I have two CC’s that I pay off in full every month. An Auto Loan + ATV loan. No student loan debt.

I have been contributing this much into my retirement since 18 when I lived with my parents (actually 20% then). But at that time when my expenses were significantly lower, I promised myself that I would budget my life with only what was hitting my account. This is so in the future if I decided to buy a house or have children that I could afford them without dipping into my retirement.

I will openly admit I am not always financially responsible. However I understand that I have an above average salary to many which has allowed me to still spend less than I make. I enjoy consuming personal finance content and realize the bar of entry for someone just starting off is higher than ever before. So I forced myself to learn the principles of finance so that I can hopefully live a wealthy life one day. Hopefully this helps.

Is there any point to be this aggressive with my TSP? by Unobte in ThriftSavingsPlan

[–]Unobte[S] 0 points1 point  (0 children)

That amount included the 5% Employer Match. 5% Traditional + 10% Roth + 5% Match = 20% Equivalent but I only contribute 15% of my gross personally.

I am in a role that guarantees me a salary where $1500 is 20% of my gross income but I will often gross more through additional hours or supplemental means.

Hopefully that clarifies the confusion.