[USER]

Ok, I really mess up last couple of years financially. I made lots of stupid decisions with my money, chasing meme stocks, gambling, and so on and lost about 150k.

I am really embarrassed about it but I am ready to change. Please give me some word of encouragement.

I work in the health care field and makes about 500k a year before tax. My house is worth about 1M and 450k mortgage left @2.6% rate.

My business is worth about 1.5M and 300k business loan left.

About 200k in 401k and 130k cash seating in a checking account. I have some personal loans which I am planning on consolidating and pay off quickly.

Fortunately, I love my job and I am not even 40 yet so I know I still have time to make up.

I would love to hear any feedback and word of encouragement.

Thank you.

[Farris]

Learn multi family/ real estate, and get addicted to buying that.

[Anthony]

I’m more concerned about the “why.” With you assets and income, you can handle a bad year or two financially. Clearly that’s recoverable.

But if you don’t figure out why you ended up making these stupid decisions and tackle those issues head on, you will be at risk of making even more stupid decisions in the future that could affect your health or family.

I could ask you some more questions to help you drill down on this if you’re interested, but I don’t want to waste my time. Let me know.

[Thùy]

At 2M net worth and 99th percentile income, I think it’s just a “small” cost for a big lesson learned honestly.

[Daniel]

Acknowledgement of your mistakes and wanting to change is huge. You can’t change the loss but you can stop digging the hole.

You’re on the right track and you have a great income to make up for your losses.

Admitting mistakes and changing is the hardest part and it sounds like you’re past that part.

[Howie]

You will be fine.
Take it as a learning experience.

Stick to traditional investments and you will be fine.
I would get a fee-only advisor/coach.

[Luciano]

You are young. Make a great salary and still have a decent networth for your age. Put it behind you and concentrate moving forward.

Invest in etf’s or mutual funds for the long term and in 5 years you won’t even look back at this.

Be positive.

[John]

Simple, make saving a priority. You have plenty of earnings no matter where you live. Your housing cost is reasonable.

Flip the switch to save.

[Kristi]

Dave Ramsey pay off principals ( one being snowballing payments) and convert your retirement to Roth IRAs now to save taxes in retirement.

My friend found this out at 48 and will save 3 million in taxes over their lifetime.

Double down on your bad debt and keep your low interest house loan.

[Jai]

Pay the personal loans off don’t consolidate. Put the remaining cash in a high yield account. You could sell the house and purchase something new and less expensive for cash from the sell proceeds.

But the remainder of that towards the remaining personal loans or the business loan.

Then get the business loan out of here with the business account, future proceeds and your income.

Now you’re debt free with money in the bank. I would say start a Roth IRA but you exceed the income requirements.

If you have children you can start them a Roth IRA and 401k and say they work for the business. Put 7k in the Roth and 7600 in a 401k.

Then gift them another 18k and put that in a high yield account. But get put pf debt first.

[Sharon]

I would take 120k from the checking account and place it in a high yield savings account today! Open an Roth IRA and connect it to an index fund using an online brokerage fund.

I would also open an HSA (health savings account).

Finally, I would open an online brokerage account and deposit a set amount each pay day into an index fund like VOO or SPY and not touch it until retirement if needed.

Now remember, when we know better, we do better! Forget the past and move forward!

[Steve]

The important thing is to realize you made dumb decisions, now you just have to learn from them.

At least in your situation it’s a wrist slap to hopefully keep you from making a big mistake in the future.

[Danielle]

Many great entrepreneurs have addictive personalities. Focus on being a student of growth and a positive wealth minded entrepreneur.

Your “side hustle” is managing your income properly.

[Gurpal]

You have plenty of time to invest and have good retirement especially with the income you make. Just make sure you have high savings rate and don’t spend excessively on things you don’t need.

Don’t make extra payments on mortgage since rate is only 2.6% since you could make 10% on S&P500/total stock index.

I’m assuming business loan is higher interest rate? (If 4-5%+ that would be worth paying off sooner).

Invest most if not all in S&P500/total stock index every month regardless if market is high/low.

[Author]

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