My take home is 5K per month and I have a B.S+M.S in Computer Science coupled with 2 years of work experience(including pro-rated parttime). I realize most people at my age(26) are in the high six figures, but as I work for the local goverment it is less.
I am presently saving most of my savings in a savings account/CD'S which are giving me about 5% as I want to purchase a home which in my area(Tallahasse, FL, U.S) are about 150-200K. Presently, I am single and my total savings are about 40K. My total expenses are about 700 per month(including everything and I don't have a vehicle) which I realize is quite high as I have heard college students in my area typically survive on 300-400 per month in my area by sharing an apartment and I am staying alone to avoid noisy roomates. 5% is pretty low considering 4% inflation and taxes.
I have one IRA account with just 2K and am participating in my agency's deferred compensation plan and have chosen the investment plan(instead of pension plan). I understand that people of my age will not be most likely not receiving any social security(40 years from now) so need to depend on only on their savings/investments for retirement.
It seems from the below links that most people today start their own business part/full time and generate side revenue and some are even teenagers.
I am just puzzled how so many people from other countries achieve things like becoming governor of California, starting companies(founder of Intel) and many more bright migrants while I am struggling to even save for retirement.
I am trying to learn as much as I can about investment vehicles and talking to many bankers as possible while avoiding their investment services until I understand how it can assist me in the future.
It appears quite a lot of people achieve it in our country from
Can moving to a different place like New York City or California boost income after taxes, expenses etc of living in that area and working for the coprorate sector?
Some have told me being an independent consultant you can charge 100$ per hour assuming you can market and sell yoursel properly. For a 1 year contract(working 1950 hours per year) with 100$ per hour someone could bring 195K after Federal, state, self-employment tax, medicare, health/business insurance/vacation/annual leave,training leave etc. could still net about 100K which is better than my present take home of 60K per year but I would lose job security and have to be mobile which people have suggested me most people at my age without a family typically do to boost their income. Some have told me it is advisable to work for goverment in late thirties or forties and presently earn as much as possible by investing aggressively, working as a contractor starting a part time business/franchinse/real estate etc.
As I am a newbie I would appreciate the advice of experienced folks in this team on how to reduce outgo, increase income and invest properly for eventual retirement.
Thanks a lot.