If I Had To Start Over

@robeverydayfinance

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SoundTikTok sound · original sound - robeverydayfinance

Why it worked

The video provides a clear, actionable financial roadmap for viewers who may feel behind, leveraging the creator's personal experience and relatable advice to offer a structured approach to wealth building.

Summary

The creator outlines a six-step financial plan for someone starting over with $100,000 at age 31. The steps include opening a high-yield savings account, maximizing employer 401k match, contributing to a Roth IRA, building a six-month emergency fund, increasing 401k contributions, and using bonuses for alternative investments like HSAs or brokerage accounts.

Structure

1Start with $1k in HYSA
2Maximize employer 401k match
3Open and fund a Roth IRA
4Build a 6-month emergency fund
5Increase 401k contributions
6Use bonuses for alternative investments

Product placement

HYSA (High-Yield Savings Account) - acts as a place to store money and earn interest, removing it would change the video's advice on saving. 401k match - acts as a benefit from an employer that provides a return on investment, removing it would change the video's advice on retirement savings. Roth IRA - acts as a retirement savings account where money can be invested, removing it would change the video's advice on retirement savings. Emergency fund - acts as a financial cushion for unexpected expenses, removing it would change the video's advice on financial security. HSA (Health Savings Account) - acts as a tax-advantaged savings account for medical expenses, removing it would change the video's advice on alternative investments. 529 Plan - acts as a tax-advantaged savings account for education expenses, removing it would change the video's advice on alternative investments. Brokerage account - acts as an investment account for buying stocks, bonds, and other securities, removing it would change the video's advice on alternative investments.

Original caption

If I had to start over from scratch, here are the exact steps I’d take to get back on track 👇 1️⃣ Open a HYSA and save $1k. This won’t cover everything but will definitely give you a cushion for smaller popup expenses 2️⃣ Hit your Employer 401k match. It’s free money, this should always be taken 3️⃣ Open a Roth IRA. $625/mo maxes the account and will put you well on your way to retiring a millionaire, even if you start late 4️⃣ Bump up your emergency fund to 6 months. Controversial but entirely necessary today 5️⃣ Increase your 401k contributions to 8-10%. This is still tax advantaged so it’s a good step to take 6️⃣ Other investments. Here’s where you can diversify your investment vehicles 🤔 What would you do differently? #PersonalFinance #personalfinancetips #financialliteracy #rothira #hysa

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Transcript

I just had over $100,000 saved up and invested at 31, but if I had to start completely from scratch, here's everything I would do step-by-step process to get back on track. If you're new here, I'm Rob and I break down personal finance for all the people that weren't taught this growing up. Get started, I'd go ahead and open up a high yield savings account and do whatever I could to get my first $1,000 saved. That won't cover every situation, but it will help cover some of those smaller popup expenses that you might not be expecting, that'll help derail you're if you're caught off guard here. After that, I'd go ahead and set up my employer 401k match. It's free money, 100% return on investment. It's part of your compensation package and it is 100% something you can't miss out on. Third, I'd open up a Roth IRA and invest $625 a month into a low cost broad market index fund, like something tracking the S&P 500. It really doesn't have to be complex. Simple is best. Just track. After that, I do whatever I can to bump up my emergency fund to six months. I know the standard is three, but in today's environment with the job market and just in the event of trying to catch up, six months is the bare minimum. I'd be happy to take on anyone in the comments that disagrees with me there. Once my emergency fund is all squared away, I'd bump up my contributions to the 401k past the employer mark. Ideally somewhere in the 8 to 10% range because your preparing for your retirement is fundamental. Use bonuses for alt investments. If my 401k is covered, I'd use any bonuses or raises or anything like that that I get to increase my contributions to either an HSA, a brokerage account or a 529 plan, anything like that to just get further ahead. Starting over at this point at 31 would suck because you lose those contributions for IRAs. Lost growth & time in the market is the biggest loss. I would never be able to get back, but it wouldn't be the end of the world. This is a proven system that relies on consistent investments and doesn't rely on getting lucky. That's a key point here. Let me know what you do differently in the comments.